Even if a person dies, the credit cards and loans they owe still need to be repaid.

But who will pay off the credit card and loan balances after the borrower dies? Mainly divided into the following situations:

1. Although the borrower has passed away, if there is an heir, after the heir inherits the inheritance, all debts will be borne by the heir. The inheritance inherited by the heirs not only includes real estate such as deposits and houses, but also includes the liabilities and arrears left by the predecessors.

2. If the borrower has no heirs, or the designated heirs give up the inheritance, the bank can only liquidate the deceased’s assets in the bank. If it is not enough to repay the debt, it can only Deal with bad debts.

3. Under the premise of Article 2 above, if the borrower does not leave any inheritance and the credit card overdraft money has been squandered through various methods, the credit card and credit card in his name will The loan does not need to be repaid.

This risk is something that the bank should have anticipated when applying for a loan for this borrower, and it is also a risk that the bank must bear.

4. If the borrower has a guarantor when taking the loan, then the guarantor will be responsible for repayment after the death of the borrower.

Possible risks of general credit loans are as follows:

1. Willingness to repay

Usually banks will judge whether or not the applicant is eligible based on the applicant’s credit record and communication. If you have a good willingness to repay, if there are multiple overdue behaviors in your credit history, no matter how good the applicant's financial ability is and how strong your repayment ability is, this kind of customer will bring risks to the lending institution.

2. Repayment ability

The bank will review the borrower's bank flow and assets to determine whether the borrower's income is stable. For fixed assets with unstable income and no realizable income If a user has a strong willingness to repay the loan in a timely manner and is unable to repay the loan, this is definitely not possible.

3. Hidden liabilities

Invisible liabilities refer to liabilities that are not reflected in the credit report, such as loans between friends of the borrower, loan sharking, etc., or the borrower is paying for Others provide loan guarantees. Even if such users can meet the bank loan requirements when applying for a loan, there is no guarantee that unexpected events will occur after the loan is successful.

4. Over-indebtedness

When a borrower already has excessive debt that is beyond his or her ability to bear, applying for another loan will only increase the borrower’s financial pressure. If the loan is large, the repayment ability will of course be greatly reduced, which is also a big risk for the lending institution.

Credit cards, also called credit cards, are credit certificates issued by commercial banks or credit card companies to consumers with qualified credit. It takes the form of a card with the name of the issuing bank, validity period, number, cardholder name and other contents printed on the front, and a magnetic stripe and signature strip on the back. Consumers holding credit cards can shop or consume at specially appointed commercial service departments, and then the bank will make settlements with merchants and cardholders. Cardholders can overdraft within the prescribed limit.

Main features

①Credit card is one of the fastest growing financial services today. It is an electronic currency that can replace traditional cash circulation to a certain extent;

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②Credit cards have both payment and credit functions. Cardholders can use it to purchase goods or enjoy services, and can also obtain certain loans from card issuers by using credit cards;

③Credit cards are high-tech products that integrate financial services and computer technology.

④Credit cards can reduce the use of cash;

⑤Credit cards can provide settlement services, facilitate shopping and consumption, and enhance a sense of security;

⑥Credit cards can simplify collection Reduce payment procedures and save social labor;

⑦Credit cards can promote product sales and stimulate social demand.