Friends who have used credit cards know that overdue credit cards will have a great impact on personal credit reports. However, if a bad debt occurs on a credit card, it will be more serious than an overdue situation. So what exactly? Are they bad debts?

Bad debts are bad debts. Generally speaking, it refers to the receivables that have passed the repayment period, cannot be recovered after collection, are in a sluggish state for a long time, and may become bad debts. Bad debts are the result of failure to settle accounts in a timely manner, and also refer to property that cannot be recovered because the other party does not repay it. Generally speaking: Bad debt means that the bank thinks that it is ineffective to collect from you and will no longer collect the debt; or it cannot contact you and cannot handle it. Some behaviors when using credit cards are likely to lead to bad debts, such as overdue premiums, annual fees and online loan arrears.

So what is the difference between bad debts and overdue debts? If you have a record of bad debts, you will basically be included in the credit blacklist, and all places that require credit reporting will no longer be open; bad debts cannot be eliminated automatically. If you deal with it, it will last a lifetime; no interest is charged on bad debts, and you only need to repay the principal when repaying. After the bad debts are paid off, the account needs to be closed.

Overdue means that the credit card has not been repaid on time, and it will be recorded on the credit report if it is accumulated 6 times for 3 consecutive times; the overdue balance has interest, and the longer the overdue time is, the more it will continue to increase until the debt is paid off. . Overdue records will be kept in the credit report for two years, so do not close the account immediately after paying off the debt, and use subsequent consumption records to overwrite the negative records; only if the overdue period exceeds 180 days and no collection results are achieved, it may be converted into a bad debt.

There is a big difference between bad debts and overdue debts. It can be said that bad debts are more serious than overdue debts.