1. Bad debt reason:
There are two main types of bad debts caused by overdue repayment, one is general bad debts, and the other is bad debts caused by premium payment:
1. General bad debts: if the credit card overdraft is not paid back, bad debts will be formed over time.
2. Premium bad debt: refers to your credit card that has been idle for a long time, but the amount on the card exceeds the credit card limit. For example, if you owe the bank 8999 pounds, you pay back 9000 pounds, and then you pay back a dollar, and you don't withdraw it for a long time, and you don't use your credit card for a long time, there will be bad debts.
Second, the classification of bad debts:
1. General bad debts
General bad debts refer to the failure of the borrower or credit card holder to repay the loan in full and on time within the specified time limit, and the bank's collection is invalid if it is overdue for more than 180 days, or the bank cannot contact the borrower for collection due to personal reasons. If the bank fails to recover the money within the agreed time, the overdue accounts will become "bad debts".
2. Bad annual fee
Most modern people hold several different credit cards. Some people don't use credit cards and don't pay attention to checking their credit card bills, which leads to the inability to pay annual fees and eventually lead to bad debts.
3. Online loans are overdue
If you borrow an online loan and the debt is not repaid, it will also form bad debts. Different online lending institutions have different regulations on the collection time, but the collection period of most platforms is generally about 3 months or half a year. If it is confiscated after half a year, it will basically become a bad debt.
In short, bad debts are a serious breach of contract. As long as there is such a record, most banks and financial institutions will reject it. Even if the bad debts have been paid off, there will be a process from bad debts to overdue and overdue to elimination, which will take longer.
Third, the bad influence:
Bad behavior is a serious breach of contract. If there are bad debts in personal credit information, it means that some enterprises have exceeded the repayment period. Whether you can't contact yourself or users refuse to perform their duties, they are in a state of long-term stagnation and may be identified as bad debt receivables by banks. In a word, bad debt refers to the property that cannot be recovered because it is not settled in time.
In fact, the occurrence of bad debts is mainly due to the long overdue time of credit card overdraft and serious overdue repayment. It may even be identified as Lao Lai, which will also affect the future mortgage and car loan. In short, the formation of bad debts will have a great impact on your life.