1. What are the consequences of overdue credit cards?
1. Late payment fees will be charged for overdue credit cards. The so-called late payment fee on a credit card is the fine you have to pay after the payment is overdue. Unlike interest, late fees are calculated monthly and add 5% of your total debt each month.
2. After using a credit card to overdraft, users usually have an interest-free repayment period of 20 to more than 50 days. However, if the cardholder is overdue, interest will begin to be charged on the overdue amount, with a daily interest rate of up to 0.5%.
3. Bad credit record. Overdue credit card repayment records will be entered into the central bank's credit information system and generate bad credit records. China’s personal credit information has been linked nationwide. As long as residents have handled loan business, applied for credit cards or provided guarantees for others, they can find credit reports at any commercial bank in the country.
4. Criminal liability for malicious overdraft. According to the interpretation of the Criminal Law, malicious overdraft refers to the behavior of a cardholder who uses it for illegal possession and fails to return it despite being urged by the card issuer. Criminal liability will be pursued for credit card fraud.
2. What should I do if my credit card is overdue?
1. If you really cannot repay in full, in order to avoid overdue payment, you can only pay the minimum repayment amount. At present, the minimum repayment ratio of most banks is 10% of the amount owed. However, if you adopt the minimum repayment amount, you will not be able to enjoy the interest-free period. All consumption within the billing month requires a daily interest rate of 0.05. If you only make the minimum payment every month, the interest will be high in the long run.
2. If you think it is not cost-effective to calculate the minimum repayment interest, you can also try to pay in installments. The monthly bill is divided into 6 or 12 repayments. Although you need to pay a certain handling fee, there is no interest, which is not conducive to the risk of rolling interest, and you don’t have to worry about overdue payments.
3. If special circumstances lead to overdue interest, you can also apply to the bank for a suspension of interest by providing supporting documents. Although the credit card can no longer be used during the interest suspension period, the processing fee will be lower.
3. What are the consequences of canceling a credit card?
In order to cancel a credit card, the cardholder needs to pay all outstanding balances on the credit card and call customer service or apply for cancellation through credit card software. But if the credit card has installment payments, it can only be canceled after the installments are paid off.
Within 30 days after cancellation, it is a hesitation period. As long as the cardholder is in this hesitation period, the cardholder can call customer service at any time to apply for restoration. After the credit card is cancelled, it will not affect subsequent bank credit card applications. However, after canceling a credit card, it is easy to be refused to apply for a bank credit card again. However, it has no impact on personal credit information.
If there are any unclear or new situations, we recommend that you call us directly for free consultation so that you can understand the communication case situation and provide you with detailed and targeted answers to avoid problems due to incomplete information and poor communication. , the answer is wrong. I wish you success in safeguarding your rights.