The dangers of overdrafting a credit card include: related fees, bad personal credit record, and possible prosecution for malicious overdraft, etc.

One of the consequences: related fees

If a credit card overdraft is not repaid for 3 months, late payment fees and high interest will be incurred, which should not be underestimated.

Consequence 2: Producing a bad personal credit record

Generally speaking, major banks now have time tolerance services for credit card overdraft repayments, but if you have not repaid for 3 months, you will definitely It is overdue and will create a bad personal credit record, which will seriously affect future card applications and loans.

Consequence Three: It may constitute a malicious overdraft and be prosecuted

The judgment of malicious overdraft is not only based on the overdue period, but also involves subjective attitudes and bank behaviors. According to relevant judicial interpretations, the amount of malicious overdraft refers to the amount that has been refused to be returned and has not yet been returned, excluding late payment fees, compound interest and other fees charged by the card-issuing bank.

Extended information:

The bank's approach to overdue credit card payments

The bank's collection of credit card debts is usually divided into two stages: the initial stage and the later stage.

The specific methods in the early stage include: collecting payments from card users through the customer service department, collection department, and legal affairs department.

Later-stage methods include: debt collection companies come to collect debts, report to the central bank for approval, and appeal to relevant departments.

1. Card users will no longer enjoy interest-free repayment for future purchases. The card-issuing bank will calculate interest on a daily basis based on the consumption amount as the principal from the day the consumption occurs. The daily interest rate is 5/10,000 and compound interest is charged on a monthly basis. For the unpaid portion of the minimum repayment amount, a late payment fee of 5% will also be charged on a monthly basis.

2. Initially, the applicant will be reminded through customer service and collection staff, and then collection calls and collection letters will be issued.

3. If the card user receives a reminder letter or a lawyer's letter and still fails to repay, the sponsoring bank will report it to the central bank, causing a stain on the credit record, and finally use legal means to force the card user to repay.