1. Decline in credit rating: overdue repayment will directly affect personal credit records and credit rating will decline. Low credit rating may lead to difficulties in applying for loans, buying goods or renting houses in the future.
2. High late payment fee and interest: overdue repayment of credit cards will result in high late payment fee and interest charges. The late payment fee is calculated according to the number of days overdue, and the interest is calculated according to the accumulated overdue amount. These extra expenses will accumulate and increase the burden of debt.
3. Legal disputes and debt chasing: Banks or credit card issuers will take legal measures to recover overdue debts. They may take action through the court, such as prosecution and enforcement. Creditors may also collect debts by telephone, letter or at home.
to sum up, the overdue repayment of credit cards will lead to the decline of personal credit rating, increase late fees and interest charges, and may also face the risk of legal disputes and debt catch-up. Therefore, it is recommended to repay the loan in time to avoid overdue and maintain a good credit record.
Extended information:
Late repayment of credit card refers to the situation that the cardholder fails to pay off the credit card debt within the specified repayment period. According to the relevant laws and regulations of China, overdue repayment of credit cards has certain legal consequences. According to the Contract Law of the People's Republic of China, overdue repayment is a breach of contract, and banks have the right to take legal measures to recover debts.
For users in China, overdue repayment will have a negative impact on personal credit records. Personal credit record is one of the important bases for financial institutions to evaluate personal credit status. If the credit record is bad, it will affect personal credit activities in the future. Therefore, users are advised to repay the credit card arrears on time before the credit card expires.
in addition, according to the laws of China, banks and credit card issuers have the right to take various measures to recover overdue debts. Banks can remind users of repayment by phone, letter or door-to-door collection, and may even take legal measures, such as suing users or applying for enforcement. Overdue repayment may also cause users to be included in the bad records of the credit information system, limiting their future credit activities.
In short, overdue repayment of credit cards will have a negative impact on personal credit records, and at the same time, it may face high late fees and interest charges, as well as the risk that banks will take legal measures to catch up with debts. Therefore, users are advised to repay the arrears in time in strict accordance with the credit card repayment agreement and maintain a good credit record.