Does a credit loan affect your credit report?

1. As long as it is not overdue, it will not affect your credit report. However, credit loans will reflect your liabilities and credit status in the credit report. Credit loans are actually credit loans, also called pure credit loans, which are a type of financial loan that you can apply for without providing any collateral. Corresponding to it are mortgage loans and credit loans, which are all subject to credit bureaus.

2. Credit loans are very popular. Various banks and financial companies have such loans. The most common credit loan is online loan. You only need a real-name mobile phone number and ID card to make a payment. There are also bank credit loans, which have higher requirements. You need to have a check-in salary statement or social security provident fund before you can apply. Another common type of credit card is the credit card reserve fund. As long as your credit card is used in good condition, the bank will issue you an installment loan, which we also call a card loan. Then credit loans correspond to mortgage loans, such as real estate mortgage loans, vehicle mortgage loans, etc.

3. Every loan you apply for a credit loan will be reflected in your credit report, but as long as you are not overdue, it will have no impact on your credit report. If a credit loan is overdue, an overdue record will be left on your credit report. When you apply for a credit card or loan again, you will be easily rejected. If it is not overdue, the credit report will only record the credit extension, liabilities and repayment status of the credit loan, such as the amount applied for, how many installments it is divided into, the outstanding amount, etc. A credit line of 100 is counted as your liability, regardless of whether the money is used or not. This is different with credit cards. The credit limit is counted as your liability, and the unused portion is not. However, both will occupy your personal credit limit. For example, if the amount of credit you apply for is relatively large, then when you apply for other loans or credit cards again, the amounts of the loans and credit cards will be relatively small, because everyone's credit limit is limited by the central bank in the short term. It is fixed, so if one party’s share is too large, the other party’s quota will be reduced.

Will credit loans affect personal credit reporting?

Credit loans are subject to credit reporting. As long as they are not overdue, they will not have an impact on credit reporting. Credit loans refer to loans issued based on the borrower's creditworthiness, and the borrower does not need to provide guarantees. Its characteristic is that the debtor does not need to provide collateral or third-party guarantees to obtain a loan based only on its own creditworthiness, and the borrower's creditworthiness is used as a guarantee for repayment. This kind of credit loan has been the main lending method of Chinese banks for a long time.

Consequences of overdue credit card repayment:

Consequence 1:

After a credit card defaults on high penalty interest, the penalty interest fee usually involved is recurring interest fee. and late fees. Revolving credit is essentially a small, unsecured loan that accrues interest on a daily basis. If the full amount is not repaid on the final payment date, revolving credit interest will accrue on the next statement, and it will start from the date the consumption is recorded. Calculate interest.

Except for ICBC, which imposes balance penalty interest, the other 12 banks still impose full penalty interest. Full penalty interest means that even if the customer repays part of the amount, the repayment portion will not be deducted when calculating penalty interest, and interest charges are usually calculated at a daily interest rate of 0.5%. In addition, some banks stipulate that within 15 days from the bookkeeping date, the daily interest rate will be calculated at 0.5%, and if it exceeds 15 days, the daily interest rate will be calculated at 10%. If it exceeds 30 days or the overdraft amount exceeds the prescribed limit, the daily interest rate shall be calculated at 0.01%. Fifteen calculations, the longer the arrears are, the higher the penalty interest will be.

Consequence 2:

Legal violent credit card collection has become a hot topic. Many bank credit card centers outsource credit card repayment collection to some so-called "debt collection companies". These companies vary in quality. Debt collection methods are relatively rough and cause great trouble to customers.

Not only that, defaulting customers may also face legal consequences. According to the provisions of the "Criminal Law", for malicious overdrafts of more than 5,000 yuan on a credit card, and the bank has not paid back after three months of collection, if the circumstances are serious, you may be held criminally responsible for the crime. For defaulting customers, entering the judicial process will not only affect their reputation, but also incur more costs. In addition to paying off the arrears, they will also have to bear litigation costs, which is even worse.

Consequence 3:

Leaving "credit stains" in the national credit reporting system. In 2006, the central bank established a national unified basic database of corporate and personal credit information. When you apply for a card or loan, your own "credit report" will be automatically generated in the system. The "stains" in this report cannot be ignored. It will affect the application for various types of loans, insurance, job hunting, and overseas study. etc. Bad records are generally retained abroad for 7 years. In November 2012, the central bank's new version of personal credit report was launched. Overdue credit cards and loans before October 2009 will no longer be displayed, and overdue records will be retained for 5 years thereafter. This move means that citizens’ overdue negative records will no longer remain with them for life. If they can repay their loans in full and on time for five consecutive years, their credit can be restored.

Does credit loan have an impact on credit cards? Why you can get a loan but not a credit card

Credit loans do not require mortgage guarantees, are easy to apply for, and are easier to borrow than traditional loans. Many people want to apply for a credit card transfer after applying for a credit loan, but they are worried that the bank will not approve the card. So does credit loan have an impact on credit cards? Why can I get a loan but not a credit card? In fact, the requirements for credit loans and credit cards are very different. Let’s briefly introduce them today.

Does credit loan have an impact on credit cards?

It definitely has an impact. Nowadays, credit loans on formal platforms are all subject to credit bureaus. When applying, a query record of loan approval will be left on the credit bureau. After the application is successful, it will be displayed in the credit record. Loan information, including loan amount, monthly repayment amount, overdue status, etc., are all reference factors for credit checking when approving a credit card.

The query record can reflect the applicant's economic status, and the query record can reflect the credit situation, repayment ability, etc. of the application. Too many hard query records indicate that the economy is not very urgent, and the credit is not good and the repayment ability is not good. Incompetence will make it more difficult to apply for a credit card.

Why can I get a loan but not a credit card?

Being able to get a loan means that the applicant's qualifications are pretty good, but a credit card depends not only on the applicant's qualifications, but also on the bank and card type chosen. For this reason, if the loan application is approved and the credit card cannot be approved, it does not necessarily mean that the qualifications are not good. It is probably that the right bank and card type were not selected.

It is recommended to choose the appropriate bank and card type based on your own credit conditions. For example, if you have average qualifications, it is recommended to choose an ordinary credit card from a commercial bank, which is slightly easier to pass than a high-end credit card. Especially for those who have never applied for a credit card, their financial strength is not very strong, they have no savings in the bank, and no financial products. If they apply for a high-end card from the beginning, the result is that they will be rejected in all likelihood.

The above is the relevant introduction of "Does credit loan affect credit cards?" I hope it will be helpful to everyone.

That’s it for the introduction of whether credit loans affect credit.