1. Consequence:
Usually, a credit card overdue for one year will lead to the following consequences:
-Credit history is damaged: the bank will report your overdue situation to the credit reporting agency, which will leave a bad record in your credit reporting.
-Decline in credit score: one year overdue will seriously affect your credit score and have a negative impact on future loan and credit card applications.
-High late fees and interest: The bank may charge high late fees and interest for the overdue part, thus increasing your repayment burden.
-Recovered debts: Banks have the right to recover debts through legal means, including entrusting collection agencies, and can take measures such as litigation to recover debts.
-Impact on future credit lending: The overdue record will be kept in your credit report for six years, which will have an impact on your future credit lending.
2. Remedial measures:
Although the consequences of one year overdue are serious, you can still take the following measures to remedy it:
-Repay as soon as possible: Paying off the arrears immediately can avoid continuing to generate late fees and interest, and reduce the impact of overdue records on the credit score.
-Negotiate the repayment plan: negotiate with the bank to make a reasonable repayment plan, as far as possible to disperse the repayment pressure and reduce the financial burden.
-Communicate with the bank: contact the bank actively, explain the reasons for overdue, and actively seek their help and the possibility of delaying repayment.
-Prudent financial management: establish healthy financial management habits, rationally plan and arrange income and expenditure, and avoid the occurrence of overdue again.
3. Summary:
Credit card overdue for one year will have a serious impact on personal credit record and credit score, which may lead to high late fees and interest, and even debt collection. However, we can make up for it after it is too late, and gradually restore the credit status through measures such as repayment as soon as possible, negotiation of repayment plan, communication with banks, and prudent financial management.
4. Extended information:
The credit system of China, led by the People's Bank of China, covers the whole country. Credit records are formed according to the use of individuals in financial institutions and other credit service institutions, including credit cards, loans, guarantees and other information. The overdue records will be recorded in the personal credit report, which will be inquired and referenced by the institution in the process of applying for loans and credit cards in the future. Therefore, it is very important to manage personal credit records in time and maintain personal credit status.