1. The so-called compensation means that the lending institution and the insurance company sign relevant agreements, and when the borrower is overdue, the insurance company will repay the borrower. At this point, the borrower's creditors became insurance companies. Usually, once the user's loan in the lending institution is compensated, it will be recorded in the personal credit report.

2. It is worth mentioning that compensation is a record of dishonesty, which will not be eliminated after 5 years like overdue records, and the compensation record will remain in the personal credit report.