The impact of overdue credit card payments

1. Interest and late payment fees

Interest generally refers to the full penalty interest, which means that even if the customer repays part of the payment, the The repayment portion is not deducted when calculating the penalty interest, and the interest expense is usually calculated based on the daily interest rate of 0.5%.

Late payment fees refer to the "late payment fees" charged on the unpaid portion of the minimum repayment amount when the cardholder's actual repayment amount is lower than the minimum repayment amount on the due date of the credit card. The proportion of late payment fees is uniformly stipulated by the People's Bank of China, which is 5% of the unpaid portion of the minimum repayment amount.

2. If you have overdue repayments more than three times, you can apply for a credit card but the amount is very small, or you can get a loan but the interest rate is very high.

3. Have a bad credit record

If you are overdue more than 6 times and fail to pay once, you will be blacklisted by the "Personal Credit Information System" of the People's Bank of China and be on the blacklist. It may affect work, school, and going abroad. Don’t think that it only affects you, your spouse and children are also affected. By that time, there will be no regrets, and the credit report will not believe the tears.

4. Bear criminal responsibility

If the card is not repaid maliciously, exceeds the prescribed limit or time limit, and the card issuer still fails to repay the card after two reminders for more than 3 months, it will be classified as " Malicious overdraft."

A malicious overdraft of between RMB 10,000 and RMB 100,000 shall be considered as a relatively large amount and shall be sentenced to fixed-term imprisonment of not more than 5 years or criminal detention. If the amount is huge, from 100,000 yuan to 1 million yuan, the person shall be sentenced to imprisonment of not less than 5 years but not more than 10 years.

If the amount is more than 100,000 yuan but less than 1 million yuan, if the amount is huge, the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than five years but not more than 10 years, and shall also be sentenced to not less than 50,000 yuan but not more than 500 yuan. A fine of not more than 10,000 yuan;

Whoever maliciously overdrafts more than 1 million yuan for an extremely huge amount, or if there are other particularly serious circumstances, shall be sentenced to fixed-term imprisonment of not less than ten years or life imprisonment, and shall also be sentenced to a fine of not less than 50,000 yuan. A fine of up to 500,000 yuan or confiscation of property may be imposed.

Extended information:

When does a credit card become overdue?

According to the "China Bank Card Industry Self-Discipline Convention", repayment is up to 3 days late. If the difference is less than 10 yuan, no penalty interest will be charged. Otherwise, it will be considered overdue.

New rules for overdue credit cards:

Concerning the new rules for overdue credit cards, customers need to pay attention to the following points:

1. Credit card default penalties have replaced late fees:

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When the cardholder fails to repay the credit card by the due date or the repayment amount is less than the minimum repayment amount, a liquidated penalty of 5% of the unpaid portion of the minimum repayment amount will be charged each time, with the minimum or maximum charge It is stipulated by the bank. For example, China Construction Bank stipulates a minimum of five yuan, one dollar, or one euro.

2. Changes in sentencing standards:

Previously, if an overdue credit card was suspected of malicious overdraft, the amount would be more than 10,000 yuan (less than 100,000 yuan), and it would be deemed as criminal law. The amount is "large"; if the amount is more than 100,000 yuan (less than 1 million yuan), it is deemed to be a "huge amount" stipulated in the criminal law; if the amount is more than 1 million yuan, it is deemed to be an "especially huge amount" stipulated in the criminal law.

The Supreme People's Procuratorate and the Supreme People's Court revised it to: Only malicious overdrafts on credit cards with an amount of more than 50,000 yuan (less than 500,000 yuan) will be considered a "large amount" stipulated in the criminal law; If the amount is more than 500,000 yuan (less than 5 million yuan), it is deemed to be a "huge amount" stipulated in the criminal law; if the amount is more than 5 million yuan, it is deemed to be an "especially huge amount" stipulated in the criminal law.

Negotiation skills for overdue credit cards:

After overdue, you should proactively contact the bank as soon as possible, submit materials proving your insufficient repayment ability, and finally express your willingness to repay. If the user has a good attitude and is indeed overdue due to special reasons and is subsequently unable to repay the loan, the bank will consider agreeing to the user's negotiated repayment request as appropriate.

How to reduce or reduce interest on overdue credit cards:

After your credit card is overdue, if you want to reduce or reduce interest, you can apply to the card-issuing bank for an interest suspension. If the application is successful, interest will no longer accrue on subsequent arrears, which will naturally provide some relief. However, everyone needs to note that the interest accrued on previous debts will not be waived. It is still better to be recorded on the bill together with the principal, and the customer must pay it off on time.

Even if the customer directly applies for interest exemption, the bank will probably not agree.

If the customer cannot pay the debt for a while, he or she can try to extend the repayment period and repay the debt in installments while applying for a suspension of interest payments. The bank will consider this at its discretion.

As long as the customer does not intentionally fail to repay, but does not have the ability to repay, the bank may agree, and the customer will then repay the debt in installments on time according to the new repayment plan negotiated with the bank. That’s it.

Of course, it is best for customers to avoid overdue payments and develop a good habit of repaying loans on time. If you discover early that you are unable to pay off your bill in full, you can actually apply for bill installment before the repayment date arrives, or you can pay off the minimum repayment amount of the bill first.

What should I do if my credit card is overdue and no deduction is given?

If the negotiation for interest reduction or exemption after the credit card is overdue is unsuccessful, the customer actually has no recourse. After all, the bank calculates and charges penalty interest based on a daily interest rate of 0.5%, which is within the normal interest rate range, and there is no violation of regulations. , so it is difficult to directly exempt interest.

However, customers can try to apply for an interest suspension. If the application is successful, although the interest accrued before cannot be exempted, at least interest will no longer accrue on the debt in the future, which can also reduce the customer's certain repayment burden.

Of course, it is best for customers to pay off their debts as soon as possible. The earlier they pay, the less overdue penalty interest will be incurred. Even if you can't pay it off at the moment, try to pay back a little bit. If the total overdue amount decreases, the interest accrued will be less.

Of course, customers who are unable to repay within a short period of time, rather than slowly repaying the loan themselves, may as well proactively contact the bank’s customer service for negotiation and try to apply for an extension of the repayment period and repay the debt in installments. The bank understands that the customer has a positive willingness to repay the loan and will not sue the customer easily. Generally, banks have the right to sue if the payment is overdue for more than three months. Therefore, customers must not directly evade repayment after the payment is overdue.