Consequences of overdue credit card:
1. Penalty interest
If a credit card is overdue, it will generate penalty interest, and it will bear interest in full, with a daily interest rate of five ten thousandths. For example, if your credit card is overdue for 5, yuan and the overdue days are 3 days, then the penalty interest is 5,× .5 %× 3 = 75 yuan.
in addition to interest, overdue payment will also result in liquidated damages, and the collection standards of liquidated damages in different banks are different. Generally speaking, the collection standards of liquidated damages in most banks are basically set at 5% of the unpaid minimum repayment amount.
2. Bad credit reporting
We know that overdue is an act of dishonesty. Once the credit card is overdue, the bank will report the overdue record to the personal credit reporting of the central bank, and the overdue record will be kept in the personal credit reporting for five years. During this period, the application for bank loans may encounter high interest rate and small amount, or even the loan application will be directly rejected by the bank.
In addition, if the overdue period is particularly serious, the trip will also be affected, and it is impossible to spend money by plane, high-speed train, hotel and mobile phone, and children cannot attend key schools, so it is difficult to break their promises.
3. Get into criminal responsibility
We know that credit card arrears are protected by law. If the cardholder maliciously overdraws and fails to pay it back within the time limit, it is suspected of credit card fraud, and will be punished by law and face jail.
The punishment depends on the overdue circumstances. The more serious the circumstances are, the heavier the punishment will be. Those who are overdue for a huge amount may even be sentenced to life imprisonment.
4. The credit card is reduced or blocked
It is the bank that suffers the most from overdue. In order to reduce the loss, the bank will generally reduce the credit card limit of the cardholder, or even directly block the card. Once the credit card limit is lowered or blocked, it is difficult to withdraw or unblock it.
legal basis: article 13 of the civil procedure law of the people's Republic of China * * * means of preservation. property preservation adopts sealing up, seizure, freezing or other methods prescribed by law. After the people's court has preserved the property, it shall immediately notify the person whose property has been preserved. If the property has been sealed up or frozen, it shall not be sealed up or frozen again.