What happens when the car loan is overdue for one month?

After users apply for car loan products, they need to repay according to the loan contract. Under normal circumstances, there is no grace period for car loan repayment. If the user misses the repayment date and fails to repay, it is overdue and needs to bear the corresponding consequences according to the regulations. So, what happens when the car loan is overdue for one month? The consequences are very serious!

1, overdue will be collected. Car loans generally have no grace period. If the customer is overdue for one month, the lending institution will collect the overdue customer, and will contact the overdue customer by telephone, SMS, etc. to urge them to repay as soon as possible. Under normal circumstances, lending institutions will not contact the family or friends of overdue customers. From the compliance point of view, only the lender's own money will be collected.

2. Generate a large amount of overdue penalty interest. After the car loan is overdue, in addition to the normal loan interest, the lending institution also charges the overdue penalty interest of the customer. Compared with the loan interest, the penalty interest will be more, and the penalty interest generated by one month overdue will be more than the interest generated by the customer in a normal month, which will directly increase the debt pressure of the customer.

3 overdue records reported to the credit reporting agency. Most car loan products have been connected to the credit information system. After the customer is overdue, the platform will report the overdue situation of the customer to the credit investigation, leaving a record of non-performing loans on the credit investigation report of the overdue customer. Once a stain is left on the credit information, it will affect the customer's future credit information activities and even apply for some positions.

4. The loan contract is terminated early. If the customer's accumulated overdue time reaches 6 months, it is very likely that the lending institution will terminate the loan contract in advance according to the loan contract and ask the customer to repay in advance, which will directly increase the debt pressure of the customer.

5. The mortgaged vehicle is disposed of. Similarly, if the customer's overdue situation exceeds the limit in the loan contract, the lending institution will dispose of the vehicle mortgaged by the customer as agreed, and at this step, the customer may have to bear relatively large economic losses.

Therefore, in order to avoid the above-mentioned bad situation, users had better keep good repayment records to avoid overdue. Before formally applying for car loan products, users should consider their own needs and actual repayment ability and submit their applications within the scope of economic permission.