Many cardholders often make large purchases and use up all the credit limit on their cards. However, when they encounter a need for loans, they worry that empty credit cards will affect their loans. So, does emptying your credit card affect your loan? Let’s learn more about it with the editor below!

Does emptying your credit card affect your loan?

The impact is that emptying your credit card You can still get a loan from a bank, but banks will be stricter about lending and will check the credit score of the lender to understand the credit status of the lender. If you do not pay off the credit card that has been emptied before taking out the loan, your credit report will reveal the credit card debt.

If the credit card overdraft amount is relatively large, it will add a large amount of debt to the lender. The bank will think that the lender is short of funds and has high lending risks, so it will not be easy to approve the loan. Even if the approval is passed, the amount will not be very high.

How to repair your credit if your credit card is overdue?

Once a credit card is overdue, it will be reported to the central bank’s credit reporting system by the bank, leaving a bad record in the personal credit report. If customers want to repair their credit, they must find a way to pay off their debts quickly. Because overdue records usually need to be retained for at least five years after the customer pays off the debt before they can be deleted by the system. And if the customer keeps overdue payments, the overdue record is likely to remain on the credit report.

After paying off the debt, remember to take good care of your credit. For credit cards, loans and other credit products handled under your name, you must develop a good habit of repaying on time to avoid overdue payments again; and remember to make good use of credit products to accumulate a good consumption, loan and repayment record.