The five-level classification of loans is the classification of loan quality by commercial banks according to the actual repayment ability of borrowers. According to the degree of risk, loans are divided into five categories: normal, concerned, secondary, suspicious and loss, and the last three categories are non-performing loans.
Normal loan: the borrower can perform the contract; Pay attention to loans: unfavorable factors may affect debt repayment; Subprime loan: there are obvious problems in the borrower's repayment ability; Suspicious loan: the borrower cannot repay the loan principal and interest in full; Loss loan: The loss of principal and interest is expected to be above 90%.
When your loan account status is subprime, suspicious or loss, other banks or small loan companies will not accept new loan applications and credit card applications and become credit black accounts. If you pay attention to identity, it will also affect credit card approval and loan application, and you will not enjoy preferential loan interest rates.
Insurance compensation is a kind of insurance. Some banks and loan companies, in order to prevent borrowers from not paying back the money within the time limit, will introduce insurance companies as guarantees when borrowers apply for loans. If the borrower is overdue for a certain period of time, there will be an insurance company to repay, and the creditor's rights will be transferred to the insurance company. Once there is a record of insurance payment in the credit report, no matter whether you apply for a loan, credit card or mortgage, it will basically be rejected, so the credit record of insurance payment is still very serious.
Many netizens said that once the insurance compensation appeared in the credit report, the credit of that life would be ruined. Some friends will even say that the bad credit record of this kind of insurance compensation will accompany a person's life, which is the so-called compensation that destroys his life.
In fact, although the insurance payment is serious, as long as the borrower pays off the debt owed by the insurance company, the payment information in the borrower's credit report will be automatically eliminated five years later.
However, if you haven't paid back the money after the insurance payment, then this bad credit record will always accompany you. Therefore, if there is insurance compensation, everyone must pay attention to it and pay off all the arrears as soon as possible.