After the bad debts are settled, the credit report will show that they have been settled, and no bad debts will be displayed. However, the overdue records of the last five years will be displayed month by month. Bad debt is a term in the economic field, which refers to the accounts receivable that have passed the repayment period, can not be recovered after collection, and are in a sluggish state for a long time, which may become bad debts. Bad debts are the result of not being settled in time, and also refer to the property that cannot be recovered because the other party does not return it.

The following situations can be recognized as bad debts: the borrower and guarantor are declared bankrupt, closed, dissolved or revoked according to law, the legal person qualification is terminated, and the financial enterprise fails to recover the creditor's rights after claiming compensation from the borrower and guarantor; If the borrower dies or is declared missing or dead in accordance with the provisions of the General Principles of the Civil Law, the financial enterprise shall pay off his property or inheritance according to law and recover the creditor's rights that cannot be recovered after the guarantor; Creditor's rights that cannot be recovered after the borrower has suffered huge losses due to major natural disasters or accidents, and is unable to pay part or all of the debts after insurance compensation, and the financial enterprise has paid off its property and recovered from the guarantor; Although the borrower and guarantor have not been declared bankrupt, closed down, dissolved or revoked according to law, they have completely stopped their business activities, their business licenses have been cancelled or revoked by the administrative department for industry and commerce at or above the county level according to law, and the financial enterprise has failed to recover its creditor's rights after claiming compensation from the borrower and guarantor; Creditor's rights that the borrower and guarantor have not been declared bankrupt, closed, dissolved or revoked according to law, but have completely stopped their business activities or their whereabouts are unknown, have not been registered for industry and commerce, or have not participated in the annual inspection of industry and commerce for more than two years in a row, and the financial enterprise has failed to recover after the borrower and guarantor recover their debts;

The borrower is punished according to law for violating the criminal law, the property is not enough to repay the borrowed debt, and there are no other debtors, and the financial enterprise really cannot recover the creditor's rights after recovery; After the borrower and guarantor can't repay the debts due, the creditor's rights that the financial enterprise can't recover are enforced by the court, and the borrower and guarantor have no property to enforce; After the court takes legal action against the borrower and the guarantor, it dismisses the prosecution or orders to exempt (or partially exempt) the debtor's liability due to the disqualification or disappearance of the borrower and the guarantor; Or the creditor's rights that cannot be recovered by the financial enterprise due to the loss or loss of the limitation of action of the loan contract, guarantee contract and other rights, and the court will not accept or support them.