Paying an extra dollar will also cause bad debts? Bad debts of credit cards are a common problem for many card users in the process of using credit cards. Many people don't know what this bad debt means or how to deal with it. Let's introduce it to everyone.
1. What is bad credit card debt?
The so-called credit card bad debts refer to accounts that have not been paid off for a long time. For example, you have reached the repayment date, but you have changed your address or contact information, resulting in the bank's inability to recover the accounts receivable that have been sluggish for a long time and have not been settled in time.
Second, the impact of credit card bad debts?
Because bad debts in Credit Insurance are a serious overdue situation (much more serious than normal overdue), as long as bad debts appear in Credit Insurance, it means that we have cut off contact with the bank's business, let alone apply for a card loan. Also, if you don't deal with bad debts, you will follow them forever. In some cases, even if the debt is paid off, the bad debts in the newspaper will still remain!
Third, how to deal with credit card bad debts
Credit card bad debts can occur in several behaviors, such as overdue repayment, which is what we call general bad debts and bad debts caused by premium payment:
1, general bad debts: This is easy to understand. If you don't pay back the credit card overdraft, it will lead to bad debts for a long time, which is worthwhile.
2. Premium bad debts: Many card friends don't understand this. It is worthwhile not to apply for a credit card for a long time, but there is extra money in the card. In this case, many card friends will cry. I don't mean it!
For example, Xiao Wang owed the bank 4,999 yuan, but the credit card was paid back 5,000 yuan, resulting in a credit card premium of 1 yuan, and then it was not used for a long time, and bad debts appeared over time.
Four, how to deal with credit card bad debts
Credit card bad debts are easy to handle, as long as you find out the reasons for your credit card bad debts and then prescribe the right medicine.
1. General bad debts: After bad debts are generated, pay off the debts in time (be careful not to pay them back) and cancel the account. After successful account cancellation, you can find that there will be no overdue accounts in your credit report.
2. Bad debt of premium: Take out the extra money and be careful not to close the account. If you close the account, your personal credit will still be overdue.
The above is the introduction of "bad credit card debt and its treatment", I hope it will help you. What I want to remind you here is that bad debts of credit cards will affect personal credit, so we must deal with them actively.
How to deal with bad debts of credit cards is better.
Generally speaking, after the overdue credit card debt turns into bad debt, the cardholder can contact the bank customer service to apply for negotiated repayment. If it is maliciously overdue, the possibility of successful negotiation repayment is very low. Only when it is proved that it is not maliciously overdue can the bank agree to the cardholder's negotiation for repayment. According to the current regulations of various banks, bad credit cards will be written off within three months. General banks will collect bad debts of credit cards many times. At this time, if the individual fails to explain the situation to the bank and fails to repay, the bank will pay the cardholder after more than three months.
Credit card bad debts usually refer to accounts receivable that are sluggish for a long time and may become bad debts after the repayment period has been received.
Credit card bad debts can only be repaid by negotiation, but it is difficult because banks generally disagree. After the credit card generates bad debts, it will charge interest at a penalty interest rate of one ten thousandth every day. The interest rate is legal and reasonable, and banks will certainly not easily promise to reduce such a large overdue penalty interest. If only the negotiation of repayment principal fails, the user can apply for suspension of interest payment. After the application is successful, the penalty interest will not be calculated later, but the interest generated before the application still needs to be repaid. In addition, cardholders can also apply for deferred repayment and installment repayment.
The following details how to deal with bad debts in different situations:
The first type: overdue bad debts. The best and only way to deal with overdue bad debts is to pay off the debts as soon as possible. Remember not to cancel the card immediately after repayment, but continue to use the credit card.
The second type: bad debts due to annual fees. For credit card bad debts caused by insufficient annual fee, users are advised to repay in time. After paying off, if the card is not used, it can be cancelled, and the bad debts of the credit card will become overdue records.
The third type: overpayment of bad debts. The handling of overpayment of bad debts is simple. Just take out the overpaid money, and then you can cancel the credit card and other related accounts. Finally, you can ask the bank to cancel the bad debt record on the credit report.
To sum up, after the bad debts of credit cards are handled, it is recommended that cardholders check their credit reports one month later to confirm whether the bad debts have been eliminated. All of the above are about "Can credit card bad debts only be repaid through negotiation? How to deal with bad debts of credit cards? " I hope it helps you.
How to deal with bad debts of credit cards
1. Bad debts are due to long-term overdue debts. The bank will hang the money in your account and it will never disappear. To deal with bad debts, the first task is to consult the bad debt handling institution and seek to solve the case reversal. Overdue funds should be paid off in time before handling. And the repayment amount should be consistent with the amount owed.
2. Bad debts have not been completely eliminated after clearing accounts, and the banking system still has backups, so it is necessary to actively communicate with banks to eliminate bad debt records.
Bad debts will affect our banking business. If there are bad debts, they should be eliminated in time.
Ten "benefits" of credit cards
We pay by credit card. In fact, the bank pays the merchants first, that is, we spend it first and then pay it back, so our cash can be used flexibly. For example, we can put it in the bank to generate interest or invest in financial products such as funds and stocks, with a buffer time of at least one or two months. Of course, be good at investing; Otherwise, there will be no money to repay on the repayment date, which will affect personal credit.
1. Less gratitude
When you are in urgent need of cash, if you borrow it from friends and relatives, you will be embarrassed to ask. You can overdraw your credit card at this time. Although the interest rate of five ten thousandths seems to be someone else's, you can weigh it yourself.
2. Relative safety
Try to swipe your card when you spend money, so you can bring less cash-even if it is stolen or lost, it can reduce the loss. If the cash is lost, the possibility of getting it back is slim; But credit cards are different. Even if it is stolen or lost, we can find the loss report at the first time. Even if your credit card is stolen without a password, it is much easier to trace it-because every credit card has a record, not to mention the bank report of loss 48 hours or even 72 hours before it is reported. In addition, if you spend in cash, you may get back the counterfeit money once!
Keep clean and hygienic.
With a large cash flow, you can imagine the bacteria on the coin, and the credit card has been touched by several cashiers except yourself-even if the credit card is dirty, it can be disinfected and cleaned.
be economical
Many banks' credit cards have cooperation or promotion with merchants, such as returning the existing discount by swiping the card, watching a movie or eating western food with a 15% discount. In addition, credit card points can also be exchanged for some gifts in daily life, and there are even some lucky draws.
promote
If there is a "VISA" or "MasterCard" logo on the credit card, you can swipe your card directly abroad, and the savings card or cash must be exchanged first; In addition, it is also convenient to book air tickets, hotels, telephone or online shopping and car rental with credit cards, but savings cards may not have this benefit-because credit cards have the function of "pre-authorization" in addition to direct credit card swiping; Also, there is no embarrassment of no change.
6. Relieve economic pressure
If there is a certain economic pressure to pay a large amount of money in one lump sum, you can use a credit card to pay in installments and enjoy your favorite items in advance. Although you need to pay a certain handling fee, I think it's worth it compared with enjoying the intangible value produced by half a year or even a year in advance. Of course, spending in advance should be done according to one's ability.
7. Accumulate personal credit records
More credit cards and timely repayment can improve the credit limit and credibility. At the same time, the people's bank of China's personal credit database will have your good credit record, and it will be much easier to approve loans to buy a house and a car in the future.
8. Easy to understand the financial situation
If you apply for supplementary cards for family members, especially for children, you will basically understand their financial situation such as consumption expenditure, which is convenient for educating children about financial management and consumption awareness.
9. Easy financial management
After the bill date, we will receive a detailed paper or e-mail bill, from which we can clearly understand our consumption and expenditure last month.
10. Some extra conveniences
Some credit cards also provide free accident insurance, medical insurance, trailer and car wash, enjoy the service of VIP rooms in banks or airports, and can also exchange benefits such as voyage and gasoline points.
How to deal with credit card arrears turning into bad debts?
Bad debts are handled in different ways under different circumstances. Here are three ways to introduce them:
1, overdue:
There is only one way for bad debts caused by overdue credit cards, that is, to pay off the credit card arrears. Don't cancel the card immediately after repayment, but continue to use the credit card, spend more and repay on time. After using the card for two years, overwrite the bad debt record with the new record.
Otherwise, if you cancel the card immediately, even if the debt is settled, the bad credit will follow you all your life and will not be eliminated after 5 years.
2. Annual fee owed:
If you don't intend to continue using this card, it is recommended to completely cancel the account after paying off the arrears. Credit card bad debts will become overdue records, which will be kept in personal credit report for 5 years from the date of repayment.
3. Overpayment:
In the case of bad debts caused by excessive repayment of credit cards, the cardholder should take out the remaining money in the card, then completely cancel the credit card and all accounts related to the card, and ask the bank to cancel the bad debt record on the credit report.
Extended data:
Credit card consumption is a non-cash transaction payment method, which does not need to pay cash when spending, and repays on the bill date.
Credit cards are divided into credit cards and quasi-credit cards. Credit card refers to a credit card in which the cardholder has a certain credit limit and can spend first and then repay.
Quasi-credit card refers to a quasi-credit card in which the cardholder deposits a certain amount of reserve fund according to the regulations, and when the balance of the reserve fund account is insufficient to pay, it can be overdrawn within the prescribed credit limit. Credit cards generally refer to credit cards.
Compared with ordinary bank savings cards, the most convenient way to use credit cards is for ordinary consumption, and there is no cash in the cards. In many cases, it is enough to return the consumption amount on time.
You can spend without deposit overdraft, and enjoy an interest-free period of 20-56 days to repay on time without any charge (most banks will charge 0.5% interest on the day of cash withdrawal, and there will be a 2% handling fee, but ICBC will only charge interest).
It is not only safe and convenient to swipe your card when shopping, but also a bonus gift.
Special merchants who hold cards in banks can enjoy preferential treatment.
Accumulate personal credit, add credit records to credit files, and benefit for life.
Access to the whole country is barrier-free, and you can withdraw money or spend money by credit card on ATM and POS machines with UnionPay logo; (Note: Credit cards are only suitable for credit card spending. It is best not to withdraw cash, which is expensive and uneconomical. )
Credit card spending, some credit cards get existing points, and various discounts and lottery activities throughout the year, so that you can always have surprises as long as you use the card; (Most credit cards have no points for online payment, but online payment is very convenient and fast. )
Mail the statement free of charge every month, so that you can grasp every consumption expenditure transparently; (Now advocating environmental protection, you can cancel the paper statement and change it into an electronic statement. )
Unique supplementary card function, suitable for husband and wife to jointly manage money or master children's financial expenses.
The free choice of one card and two currencies is popular all over the world, and consumption abroad can repay in RMB.
400 telephone or 5-digit short number prefixed with "9" provides 24-hour service, and the report of loss takes effect immediately, with zero risk of card loss.
Validity period: It is known that the validity period of domestic credit cards is generally three to five years.
Use the third-party platform (the domestic platform supporting credit card bill management is mainly Jujindou) to conduct business cooperation and provide preferential services for cardholders.
credit card
Credit cards have a term called bad debts. Many card friends don't know much about this bad credit card, don't know what it means, and don't know what to do after it is formed. The reasons for the formation of credit card bad debts are complicated, and the treatment methods are different. Here, I sorted out the information about credit card bad debts and communicated with you.
Basic definition
Refers to the overdue repayment period, which can not be recovered after collection, and is in a sluggish state for a long time, which may become bad debts. Bad debts are the result of not clearing the accounts in time, and also refer to the finance that can't be collected because the other party doesn't pay back. Simply put, it is an account that has not been paid off for a long time.
cause
There are two main types: bad debts caused by overdue repayment, that is, general bad debts, and the other is bad debts caused by premium payment:
1, general bad debts: that is, if the credit card overdraft is not paid back, bad debts will be formed after a long time.
2. Premium bad debt: It means that your credit card has been idle for a long time, but the money inside exceeds the credit card limit. For example, if you owe a bank a credit card of 8999, and you repay 9000 yuan, if you don't withdraw it for a long time and don't use the card for a long time, bad debts will also occur.
Consequence influence
Don't underestimate this bad debt. It is a very serious overdue situation in the credit report, and the severity is far from being comparable to the general overdue.
To put it bluntly, as long as the word bad debts appears in your credit report, it means that you will be completely cut off from banking business, such as applying for credit cards or loans. No matter what you think, it's in vain. If you don't deal with it, this bad debt will follow you all your life. Even if some bad debts are paid off, the records on the credit report will still be retained.
Processing mode
1. Special case 1: Bad debts caused by "overpayment", handling methods, withdrawal of overpayment, and account cancellation. Special case 2, the bad debts caused by the "annual card fee" are relatively simple to handle, and it is enough to pay off the debts and cancel the account. In both cases, banks will generally take active measures to deal with bad debts.
2. General bad debt treatment: First of all, you must pay off the arrears, and be careful not to pay a penny more. After paying off the debt, we must close the account. Unlike overdue credit cards, bad debts will not be eliminated until they are cancelled.
As for whether there will be no bad debts in the credit record after account cancellation, it depends. Some banks will update your credit record immediately after you close your account, and even put your account into an unexpired account. However, some banks are very bad, even if they close their accounts, they still have bad debts, and the handling methods have been negotiated many times. Really can't handle objections!
3. The good thing about bad debts is that there is no additional penalty interest on the arrears. In other words, if you have bad debts of 1000, you only need to repay 1000, and no new penalty interest will be generated.
So much for the introduction of how to deal with bad credit cards.