What happens if credit cards don’t work?

If the credit card debt is not repaid, there will be the following consequences:

First, it will affect the personal credit report

For a person, personal credit report Very important. If there is a stain on your personal credit report, it is basically impossible to get a loan to buy a house or a car in the future. First of all, one thing needs to be made clear, that is, if you do not pay back the money you owe on your credit card, it will definitely have a serious impact on your credit report.

In the old version of the central bank’s credit report, bad records were kept for 5 years and good records were kept for 2 years. The new version of the credit report, the personal credit report shows the "5-year repayment record." And in the future, each person’s monthly repayment record and default situation will also be reflected in the report in detail. Therefore, everyone must not fail to pay back the money they owe, otherwise they will go into the central bank's credit reporting system, which will affect future loans to buy a house and a car. In serious cases, travel will be restricted and you will not be able to buy air tickets or train tickets.

Second, if the circumstances are serious, it may constitute a crime

A malicious overdraft on a credit card refers to an overdraft that exceeds the prescribed limit for the purpose of illegal possession, and the bank has already called for two You were asked to repay the loan several times, but the money has not been returned to the bank for more than 3 months. Banks will use different collection methods according to different situations. Of course, banks are legal business institutions, so their collection methods must also be legal.

In order to give everyone enough time to repay, the bank will provide a repayment "time tolerance" service, and will also add repayment reminders every month. If it is an ordinary credit card that is overdue, it does not constitute a crime. However, if it constitutes a credit card crime, you will be legally responsible. If the case is serious, you may also face the risk of imprisonment.

In short, everyone should consume rationally and not spend too much in advance. Reasonable use of credit cards will be quite positive for your credit!

What will happen if the credit card is not repaid?

If the credit card is not repaid, it will become overdue and will incur default interest and penalties, which are increasing every day. If the credit card is not returned, it will become overdue and create a bad credit record. Although bad credit records will generally be eliminated after five years of being kept, the prerequisite for such five-year elimination is that you must pay off all outstanding debts, including principal, interest, and liquidated damages. The amount of credit card debt is relatively large. If the debt persists for more than 90 days, the bank will freeze the credit card. Only when the debt is paid off can there be a chance to unfreeze. However, if you don't keep paying it back, you may lose your ability to use the credit card forever. If you apply for another credit card from this bank, you will be declined. If your credit card principal is as high as 50,000 yuan and you fail to repay it for more than three months, and the bank still fails to repay after two effective collections, it will constitute a credit card crime. At that time, you will most likely be sentenced and you will have to pay off the debt after being fined.

1. Credit card consumption is a non-cash transaction payment method. No need to pay cash when consumption, repayment on the day of payment. Credit cards are divided into credit cards and quasi-credit cards. A credit card refers to a credit card where the cardholder has a certain credit limit and can make purchases before repaying within the credit limit; a quasi-credit card refers to a cardholder who deposits a certain amount of petty cash as required, and when the petty cash account balance is insufficient to pay , a quasi-credit card that allows overdraft within a specified credit limit. Credit card generally refers to credit card. The earliest credit cards appeared in the late 19th century. In the 1880s, the British clothing industry developed the so-called credit card, and the travel and business communities followed suit. But at that time, the card could only be used for short-term business credit, and repayments still had to be paid at any time. You can't default on it for a long time, and you don't have a credit limit.

2. The credit limit refers to the credit limit given by the bank to its basic customers, that is, this much money can be recovered by the company within the specified period. For example, if an enterprise applies for an export documentary draft of US$2 million every year, it can use US$10 million five times (the procedure only needs to be completed once, and other procedures are very simple). If it uses it ten times, it can use $20 million. On the one hand, it solves the short-term difficulties of enterprises, improves the speed of enterprises, and also improves the efficiency of enterprise capital use.

What will happen if you don’t repay your credit card?

The consequences of not repaying your credit card: The bank will charge interest and late fees after the interest-free period. Overdue records will also be recorded on personal credit reports, affecting the processing of various credit services. If the loan is not repaid for more than 2 months, the bank will call you to demand payment. In serious cases, credit cards may also be involved. Article 196 of the Criminal Law: Whoever engages in credit card activities in any of the following circumstances and the amount is relatively large shall be sentenced to not more than five years or criminal detention, and shall also be fined not less than 20,000 yuan but not more than 200,000 yuan; if the amount is huge or there are other serious circumstances, A fine of not less than 50,000 yuan but not more than 500,000 yuan shall be imposed; if the amount is particularly huge or there are other particularly serious circumstances, the fine shall be not less than 50 years but not more than 10 years, and a fine of not less than 50,000 yuan but not more than 500,000 yuan. Or confiscate property: (1) Using a forged credit card, or using a credit card fraudulently obtained with false identification; (2) Using an expired credit card; (3) Pretending to use another person’s credit card; (4) Malicious overdraft. The term "malicious overdraft" as mentioned in the preceding paragraph refers to the cardholder's behavior of overdrafting beyond the prescribed limit or within the prescribed period for the purpose of illegal possession and failing to return the card after being called upon by the card-issuing bank.

There will be consequences if the credit card debt is not paid

In the mild case, failure to repay the credit card will affect the personal credit record, and the relevant units will restrict high consumption, which will bring inconvenience to life; in serious cases, If it constitutes a malicious overdraft on a credit card, the credit card crime shall be established. If the amount is relatively large, the offender shall be sentenced to not more than five years or criminal detention, and shall also be fined not less than 20,000 yuan but not more than 200,000 yuan. A relatively large amount refers to an amount of more than 10,000 yuan but less than 100,000 yuan.

Legal basis:

Article 196 of the Criminal Law of the People's Republic of China

Whoever maliciously overdrafts a credit card and conducts credit card activities with a relatively large amount shall shall be sentenced to not more than five years or criminal detention, and shall also be fined not less than 20,000 yuan but not more than 200,000 yuan.

Article 6 of the "Interpretation of the Supreme People's and Supreme People's Procuratorate on Several Issues Concerning the Specific Application of Law in Handling Criminal Cases Affecting the Management of Credit Cards"

The cardholder exceeds the regulations for the purpose of illegal possession An overdraft with a limit or time limit that has not been repaid after two calls by the card-issuing bank for more than three months shall be deemed as a "malicious overdraft" as stipulated in Article 196 of the Criminal Law.

A malicious overdraft, if the amount is more than 10,000 yuan but less than 100,000 yuan, shall be deemed as a "larger amount" as stipulated in Article 196 of the Criminal Law; if the amount is more than 100,000 yuan but less than 100,000 yuan If the amount is 10,000 yuan, it shall be deemed as a "huge amount" as stipulated in Article 196 of the Criminal Law; if the amount is more than 1 million yuan, it shall be deemed as an "especially huge amount" as stipulated in Article 196 of the Criminal Law.

What will be the consequences of not paying back the credit card?

1. A bad credit record;

2. Interest: calculated at 50,000 per day;

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3. Late payment fee: Generally calculated as 5% of the unpaid portion of the minimum repayment amount (depending on the regulations of each bank);

4. Malicious credit card overdrafts may also face criminal penalties;

5. Being blacklisted by the bank.

1. Generally, parents’ personal credit reports have no impact on their children.

2. However, if the parents are the persons subject to execution and are restricted from high consumption, their children are not allowed to attend high-fee private schools or study abroad. In the enrollment policies of private schools in some cities, it is clearly stated that private schools must restrict children with dishonest behavior from attending high-fee private schools, and those who are already enrolled must immediately transfer to public schools. In addition, some schools that require political review of their students may also reject the children of dishonest persons.

3. Some employers will conduct political review when recruiting job seekers. Parents’ poor credit will affect their children’s job search and employment.

4. Some students from poor families will want to seek help from national student loans. According to our country’s policy, when applying for college student loans, you need to provide the credit reports of both parents. If the parents are from illegal households, then Chances are the loan will be denied.

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This is the introduction of what will happen if the credit card is not paid back.