1, the credit record will be stained.

The management of personal credit records in China's personal credit information system is very strict, which mainly restricts the lending relationship between individuals and financial institutions. Therefore, once a credit loan defaults, it will tarnish the personal credit record, and then it is quite troublesome for the borrower to apply for a credit card or a bank loan, or it needs to bear a fairly high interest rate, and even the bank will not directly approve it.

2. The late payment fee for overdue repayment is higher.

If the credit is loans overdue, the lender will first collect the loan and put the borrower on the overdue list, and at the same time, the interest rate will rise as overdue penalty. Different lending institutions have different efforts to collect late fees. For example, Citibank will charge 50% interest on the basis of the original interest rate, while Ping An Bank generally will not charge penalty interest unless it is maliciously overdue. However, small loan companies may charge more liquidated damages.

3. If the overdue amount exceeds a certain amount, legal procedures will be taken.

When the borrower of a credit loan resents overdue repayment or fails to repay it at all, the credit lending institution or bank will take legal proceedings against the borrower according to the credit loan contract signed at that time.