The consequences of loans overdue
1. Penalty interest: When signing a loan contract, some relevant regulations are generally made for loans overdue. Overdue will generally result in penalty interest. The amount of penalty interest and the interest generated are different for different financial institutions, but as an expense that should not be spent, it is better not to generate it.
Second, the credit stain: this should not be underestimated. Once in loans overdue, the bank will report your overdue records to the central bank's credit information system. Once the record is generated, it will leave a stain on your personal credit report. This small stain will form a great resistance to your future loan or credit card application, so the borrower must not lose big because of small.
Third, you can't enjoy the preferential interest rate of the loan: We all know that when you apply for a loan from a bank, the loan interest rate will fluctuate to varying degrees, and high-quality customers can usually get the lowest loan interest rate. Users with loans overdue records can't enjoy preferential interest rates even if they can get a loan application.
Fourth, if it is overdue, it will have different effects on your credit investigation according to the length of time. Credit information that is seriously overdue (more than 90 days) will become a black account, and you cannot apply for any loan business before it is paid off. If it is overdue, there will be additional expenses such as liquidated damages and overdue interest. It is also common that the interest is greater than the principal after long-term overdue, so please be cautious.
The difference between credit card and debit card
The following is the difference between the two cards: 1. Credit card is a consumer credit product, which is paid after consumption, while debit card is used after deposit; 2. Credit cards can be overdrawn, but debit cards cannot be overdrawn; 3. Credit cards have revolving credit lines, but debit cards don't (revolving credit refers to the credit line approved by the bank for the cardholder, and the debts used by the cardholder within the credit line need not be fully repaid, so a good credit record can be maintained only by stipulating the minimum repayment amount, and the credit line of the cardholder can be reused); 4. If the credit card holder needs to repay in full before the final repayment date, the shopping consumption can enjoy an interest-free repayment period;
5. Credit card deposits do not bear interest, and debit card deposits bear interest at the savings rate; 6. Credit card belongs to asset business and debit card belongs to liability business;
7. The issuance of credit cards needs to meet the relevant conditions (such as the situation of the work unit, the evaluation of repayment ability, the review of personal credit records, etc.). ), and debit cards only need to have an ID card;
8. Credit cards have anti-counterfeiting logo and UnionPay logo, while debit cards only have UnionPay logo.