1. Credit record is damaged: overdue will be recorded in personal credit report, which will have a negative impact on credit record. This will have a negative impact on personal financial and life scenarios such as applying for loans, credit cards and renting houses in the future.
2. Penalty interest and late payment fee: overdue repayment will generate penalty interest and late payment fee. As time goes on, the overdue amount will continue to increase, which will eventually lead to an increase in repayment pressure.
3. Collection and legal risks: After loans overdue, the online lending platform will adopt a series of collection methods such as telephone collection, SMS collection and door-to-door collection. If the borrower refuses to repay or is unable to repay, the platform may hand over the overdue debt to a professional collection agency or even the legal department, further increasing the legal risk.
4. Disclosure of overdue records: Overdue records can be disclosed by online lending platforms or shared with relevant credit reporting agencies and other financial institutions. This will cause difficulties for future credit lending, and may even limit the borrower's consumption and investment choices.
5. Litigation and loss of assets: In extreme cases, the borrower's serious overdue or refusal to repay may lead the creditor to take legal action or even auction assets to make up for the debt.
Therefore, in order to avoid many consequences caused by overdue, it is suggested that borrowers fully understand their credit status before lending, and rationally plan the loan amount and repayment ability. Paying back the loan on time is the key to maintain the credit record and avoid overdue.