Specifically, overdue bank cards will have the following effects on loans:
1. Credit score reduction: the bank will record the overdue record of the bank card in the personal credit report, which will affect the personal credit score. Credit score is one of the important indicators for banks to evaluate loan applications. A low score will make the applicant's credit ability suspect and reduce the possibility of obtaining a loan.
2. The loan application is rejected: the bank will check the personal credit record when reviewing the loan application. If the bank card is seriously overdue, or even overdue for many times, the bank may refuse the applicant's loan application for fear of loan default risk.
3. Increase in loan interest rate: Even if the bank agrees to approve the loan application, it will increase the loan interest rate because of the applicant's poor credit status. Banks believe that applicants with bad credit have a higher risk of default, so they will reduce their own risks by raising interest rates.
In short, overdue bank cards will have a negative impact on loans, including lower credit scores, rejected loan applications, and higher loan interest rates. It is suggested that when using bank cards, you must repay on time and maintain a good credit record to avoid adverse effects on future loan applications.
Extended data:
Personal credit records are mainly managed by the central bank's credit information system. The central bank's credit information system forms a personal credit report and credit score according to personal credit behavior and repayment. When reviewing loan applications, banks can inquire about personal credit reports from the central bank's credit information system and evaluate the applicant's credit ability through personal credit scores. Therefore, overdue bank cards have a direct impact on loan applications.