Is credit card extension a bad record? There will be these impacts

Credit card extension is for the installment that has been processed. Many cardholders are still unable to repay the loan after applying for the installment. If the bank supports extension, the installment time can be extended. It can also reduce the pressure of repayment and, importantly, avoid overdue payments. Some people may ask whether extending a credit card is considered a bad record. Let’s analyze it here.

Many people think that since the bank has agreed to extend the credit card and extended the installment time, and they have not overdue, it should not be considered a bad record. But in fact, credit card extension is done because the cardholder has insufficient repayment ability, which is also considered a bad record.

After the cardholder applies for an extension, the bank will report it to the central bank for credit reporting, and the "extension" will be recorded in the special transaction, and it will be marked in red in the credit card record. And since it is a bad record, there will also be some consequences.

1. If the cardholder can repay on time after the extension, the use of the credit card will not be restricted, but the repayment ability will be questioned by the bank, and it is easy to be risk controlled by the bank, especially if the card is used abnormally. If you behave inappropriately, you may receive a warning text message from the bank. If the debt is too high, the bank may take measures to reduce the credit card limit or block the card.

2. There is an extension record on the credit report, which will affect the subsequent bank credit business. For example, if you want to get a mortgage from a bank, and the bank checks your credit and finds that the credit card has been extended and is still being repaid, it is not difficult to guess that the lender's repayment ability is not very good, and it will directly reject the loan.

In short, although the credit card extension is not overdue, as a special transaction record, it is also a bad record. However, compared with overdue payment, extension can reflect the cardholder's good willingness to repay, and the impact will be lighter.

Loan extension will have a negative impact, and the repayer needs to repay on time

Loan extension means that the repayer reaches an agreement with the lending institution before the final repayment date stipulated in the contract. Postpone the repayment date and reset the monthly payment amount. In other words, when negotiating an extension of repayment with the bank, the borrower has already defaulted. However, in order to prevent the repayer's credit from being affected, the bank will not upload the corresponding records to the personal credit reporting system of the People's Bank of China.

Not being on the credit report does not mean there will be no negative impact. The bank may think that the extension means that there is some problem with the repayment ability of the borrower, so it will have a negative impact. Compared with overdue loans, extensions can reflect the repayer's good willingness to repay. When difficulties arise in repaying the loan, actively seek to reach an extension arrangement with the bank.

Under normal circumstances, the cardholder can apply for an installment extension from the bank from the next bill date after the installment application is successful to before the final installment bill is generated. The application method is the same as the initial application for installment payment. Call the lending bank. Just transfer the call to manual service.

The extension time generally does not exceed the longest installment period, so the repayer needs to create more wealth within the specified time to repay the debt. If the repayer still cannot repay the debt within the extension period, the bank will upload the overdue record to the personal credit reporting system of the People's Bank of China, which will affect the repayer's credit.

The extension of loan installments comes at a cost. Under normal circumstances, a handling fee is required for each extension, and a handling fee is charged for each installment based on a percentage of the unbilled amount. Applying for loan extension multiple times will have a negative impact and will also incur large handling fees and increase the repayment burden.

If the repayer frequently applies for extensions, the bank will consider that there is a problem with the repayer's financial ability and will not provide the repayer with another extension. In serious cases, the bank will also require the repayer to apply for extensions once more. Sexual settlement of unpaid debts. Therefore, do not apply for loan extension unless absolutely necessary.

What impact does loan extension have on credit reporting? This impact can be large or small

First of all, children must understand what loan extension is. Loan extension means: Borrower: "Big Brother" (Bank or financial institution), I really can’t open it right now. Can you please be accommodating? Let’s postpone the loan repayment time. Let’s sign an agreement and I will pay it back before it expires.” Bank: “Okay! Since you are so honest, I agree to delay the payment." In layman's terms, we hope that the borrower can delay the payment and extend the time for repayment. So what impact does loan extension have on your credit report? Let’s take a look at it.

Extensions have different regulations according to the loan period

1. Short-term loans (within one year, inclusive, the cumulative extension period shall not exceed the original loan period.)

2. Medium-term loans (more than one year, less than five years, inclusive, the cumulative extension period shall not exceed half of the original loan period.)

3. Long-term loans (more than five years, the cumulative extension period No more than three years)

4. Unless otherwise specified by the state. If the borrower does not apply for extension or the application is not approved, the loan will be transferred to the overdue loan account from the day after the expiration date.

Do you understand this summary? The extension itself will not have any impact on the credit report, but if the loan is not paid off after the extension and is transferred to an overdue account, the impact will be " "Alert" your credit report. Once you turn from a citizen with a good willingness to repay to a "bad banker", the "central mother" may be angry and use the credit report to "punish" you. If the credit report is not good, it will be difficult to move forward. of. Friends, if you borrow money from the bank, it is best to repay it honestly. After all, the impact of overdue payment is still relatively large.

If you have to "alarm" the credit "adults" and make judgments based on this, I hope that the most important thing is to repay the loan on time, keep good intentions when extending the contract, and never get involved if it is overdue. The most harmonious.

What is loan extension? Are there any negative effects of loan extension?

Friends who are familiar with loans may have heard of loan extension. So what is loan extension? Will loan extension have a negative impact on your credit history?

First of all, we need to understand the meaning of loan extension:

Loan extension means that you reach an agreement with the lending institution on the final repayment stipulated in the contract to postpone the repayment date. , and redetermine the monthly repayment amount, which is an extension. For example, you originally made an appointment with the bank to repay the loan on December 12th, but because of a sudden emergency, you need to use the money that will be used for repayment to deal with the emergency first, so you negotiate with the bank before the 12th. If you extend the loan for a period of time and are willing to pay the interest incurred due to the extension, this situation is called loan extension.

Will loan extension have a negative impact on your credit?

Generally speaking, yes. Because lenders may think that extending your loan means there is some problem with your ability to repay, it will have a negative impact. But compared to overdue loans, extensions can still reflect your good willingness to repay. Therefore, it is recommended that when there is indeed difficulty in repaying the loan, you should actively strive to reach an extension arrangement with the lending institution to avoid the consequences of overdue payment.

Did you know? In some special circumstances, banks will proactively provide customers with deferred repayment services. For example, after the Wenchuan earthquake, many banks took the initiative to provide deferred repayment services to disaster-stricken customers. Even if they went to the bank to repay after the post-disaster reconstruction, there was no overdue record. But don’t think that the bank will be lenient if you forget to repay due to personal reasons or have no money to repay. I just want to tell you that when special circumstances arise, the bank will consider the problem from a humanistic perspective. The reason is that the bank wants to protect those who repay on time. The credit record of a person who is willing to pay is not affected by other factors, which shows how important a person's credit record is. Therefore, we all need to pay more attention to our credit records. If we have any problems, we should communicate with the bank promptly. We must not cause any stains on our credit records due to poor communication.

Will early repayment and loan extension affect personal credit score?

We know that when applying for a loan, you need to provide a personal credit report. This also indirectly highlights the increasingly important status of personal credit report. Many friends will want to repay in advance after applying for a loan. If the loan is extended, will the early repayment affect the personal credit score? What will be the result if the loan is extended?

Early repayment may affect your credit record. The lending institution will submit the early repayment information to the credit reporting system and display it in the "Special Transactions". From the perspective of the contract, early repayment is a breach of contract, and the lending institution may charge a certain amount of penalty interest according to the contract. Early repayment does not necessarily mean strong repayment ability and good credit, and some lending institutions may regard it as negative information.

If the borrower reaches an agreement with the lending institution on the final repayment stipulated in the contract to postpone the repayment date and redetermine the monthly repayment amount, it is an extension. Lending institutions may think that extension means that there are certain problems with your repayment ability, so it will have a negative impact. Compared with overdue, extension can reflect your good willingness to repay. When you do have difficulties in repaying, you should actively strive to negotiate with you. The lending institution reaches an extension arrangement.

If you find errors in your credit report, you can raise objections with the lending institution or credit reporting center (sub-center) and request corrections. You do not have to apply for an objection in person. You can entrust an agent to apply for an objection.

I believe many friends want to know why there are errors in credit reports. The main reasons are as follows:

(1) The relevant information I filled in is incorrect;

(2) The account manager made an error when entering;

(3) The lending institution processed the data incorrectly;

(4) The credit information center integrated the data incorrectly.