Nowadays, many people apply for credit loans with credit cards. If they accidentally forget to pay back when using credit cards or credit products, then over time, personal credit information will not only be overdue. For long-term untreated debts, it may become bad debts. The so-called bad debt means that the repayment period of the debt has passed, and after repeated collection by the lending institution, the defaulting user has not repaid it, which is likely to be included by the lending institution for a long time. Simply put, bad debts are the result of long-term failure to settle accounts in time.
Generally speaking, the bank has not recovered the arrears after repeatedly collecting overdue users, and the bank feels that the money can't be recovered, or because the borrower has changed his contact information, the bank can't contact the overdue users and can't handle the arrears, so it will be treated as bad debts. It can be seen that the word "bad debt" in the credit report is not only a bad record, but also a record worse than the overdue record.
There are generally two reasons for the formation of bad debts, one is the bad debts caused by overdue repayment, and the other is the bad debts paid by premiums. Bad debt with premium payment refers to bad debt caused by the cardholder overpaying after the debt expires, and there is a balance in the card after repayment, and the credit card is not used for a long time. Bad debts paid with premiums usually have no impact, but if they are overdue, the impact will be greater.
If the bad debts caused by overdue repayment are not handled, then this bad record will accompany you for life. If you want to eliminate bad debts quickly, you must first pay off the debts, and then take the initiative to contact banks and other lending institutions to deal with them in time. Usually, after the debt is paid off, the bad debts in the credit report will become overdue records. Personal overdue bad debts are calculated from the date of debt settlement and eliminated after being kept in the credit report for 5 years.
It is recommended that you make repayment records in the process of using credit products, so as not to affect your personal credit information and avoid bad debts, otherwise you will basically miss the loan.