When making a formal loan, whether the loan is overdue or not, the loan records will be collected at the meeting. A large number of loans means a large number of inquiries about credit information, so for financial institutions, it will be concluded that users are relatively short of money and in poor financial situation, and they are unwilling to lend money to users. A normal repayment record helps to maintain personal credit. On the other hand, loans overdue records will affect personal credit information.

When there are a large number of overdue records in credit information, it will form bad credit information or credit information stain.