Will installment repayment affect your credit score?

Instalment repayment will not affect your credit score. Installment repayment is the normal business of the bank and will not be counted as overdue. When your credit card debt exceeds your repayment ability, you can apply to the bank for installment repayment, but a certain amount of interest will accrue. You can apply to the bank for an installment period based on your repayment ability.

Extended information;

Credit reporting includes two aspects: personal credit and business credit. Of course, there is also government credit reporting, but it can be ignored.

Enterprise credit reporting refers to the analysis and study of the credit records, operating levels, financial status, external environment and other factors of market participants such as enterprises, bond issuers, financial institutions and so on. , a comprehensive evaluation of its credit ability (mainly its solvency and its solvency). Corporate credit reporting is a comprehensive analysis and measurement of contract performance capabilities and credibility. It is an indispensable intermediary service in the market economy system.

Personal credit reporting refers to the activities in which personal credit reporting agencies established in accordance with the law collect and process personal credit information and provide personal credit information inquiry and evaluation services according to user requirements. A personal credit report is a personal credit history record that the credit reporting agency collects in accordance with the law, processes and organizes it in accordance with the law, and finally provides it to legal information inquirers in accordance with the law.

Currently it is mainly used for various consumer credit businesses of banks. As the social credit system continues to improve, credit reports will be more widely used in various commercial credit sales, credit transactions, recruitment and job hunting. In addition, personal credit reports also provide the inquirer with a way to review and standardize his or her credit history behavior, and form a verification mechanism for personal credit information.

The main factors that may affect personal credit risk scores are: there have been overdue repayments on loans, or credit card overdrafts have not been repaid within the agreed time limit and repayment amount, or there are too many loan accounts and credit cards, etc. When a credit reporting agency or information provider receives an objection, it shall mark the relevant information as objectionable in accordance with the regulations of the credit reporting industry supervision and administration department of the State Council, verify and handle it within 20 days from the date of receipt of the objection, and provide a written reply with the result. Dissenter.

After verification, if it is confirmed that the relevant information contains errors or omissions, the information provider and the credit reporting agency shall make corrections; if it is confirmed that there are no errors or omissions, the objection mark shall be cancelled; if it cannot be confirmed after verification, , the verification status and objection content should be recorded. Will credit card installments affect your credit score?

Repaying credit card bills in installments and on time will not affect your credit score.

Instalment payment is actually a good way to improve your credit, because the credit card itself facilitates people to pay slowly, but the installment payment needs to be paid on time, otherwise it will affect your credit. Credit cards never require borrowers to repay in full each time, but installment payments require a certain amount of interest. As for personal credit, this does not affect the credit score.

When paying by credit card in installments, if the cardholder can ensure on-time repayment, he or she does not need to pay the CCB credit card installment interest, but the bank will charge a certain handling fee (which may be 0) in accordance with regulations.

For example, Mr. If you choose 6 installments, you don’t need to pay anything other than the amount of the product itself, and you only need to repay 200 yuan per month. If Mr. What impact does installment payment have on the personal credit report of the People's Bank of China?

The impact of installment payment on your credit report depends on the situation. For example, as we have said most, as long as you pay it back on time and do not cause overdue payment, installment payment will not have any impact on your credit. But this statement only stays at the level of credit status. Whether it will have an impact on the credit situation, we need to include the liability level. Liabilities are our debt situations.

When you go to a bank to get a loan, apart from your assets, the first thing they will consider is your liabilities.

Suppose that on your credit report, every credit card is repaid in installments. The bank will consider whether you are full of debts, causing you to be so strapped for funds?

Similarly, many banks and small loan companies directly refuse loans to customers with a credit card utilization rate of 70-90%, because they feel that these are high-risk customers. Credit cards are always maxed out, and there are always installments.

This is the most direct impact, as well as the indirect impact of liabilities. When the bank calculates your debt, it will use the repayment amount/number of installments to calculate the minimum loan and credit card repayments you have to make every month. Then calculate your repayment ability based on your comprehensive qualifications. A major feature of this algorithm is that the more you pay and the more installments you make, the greater the repayment pressure will be and the harder it will be to get a loan.

In addition to debt issues, there is also the issue of credit performance. Shopping with credit card installment is different from your usual beauty and mobile phone installment. The channel for beauty and mobile phone installment is not a bank but a consumer finance company. In the eyes of banks, these are all small loan companies and online loan companies.

The reviewers will feel that if you have to pay several thousand or tens of thousands in installments, and you are working with this kind of online loan company, your comprehensive qualifications are definitely not good enough. This is why I always advise my friends around me not to just listen to the words of those beauty salespeople just for the sake of convenience.