Some people's credit cards will be classified as bad debts by banks. What do you mean by bad debts? Do I still need to return my credit card?

Bad debt simply means that there are some unprocessed funds in the cardholder's credit card account and they remain unprocessed. After this state exceeds a certain period of time, banks will include bad debts.

There are generally two reasons for the formation of bad debts:

(1) Overpayment is the bad debt caused by overpayment. Some credit cards will pay more money after the repayment date for fear that the repayment amount is not enough. For example, the bill that should be paid in a month is 500 yuan, but the money is returned to 600 yuan, so the extra 100 yuan is overpaid. We can withdraw cash from the overpaid money or spend it by credit card, but if the credit card is not used for a long time after repayment, the overpaid 100 yuan will always be displayed in the bank, and after a certain period of time, the overpaid money will become bad debts. But this bad debt has no effect on consumers.

② Bad debts arising from overdue credit cards. The bad debts we see in the credit report are basically caused by overdue credit cards. After the credit card is overdue, the bank will adopt different collection methods at different stages. Within one month after the deadline, the bank will mainly notify you by SMS. After one to three months overdue, telephone collection and door-to-door collection will be conducted. If it is overdue for more than three months, you may receive a court summons from the bank, and the bank will entrust a third-party collection agency to collect it. If the bank can't collect it, and the arrears are overdue for more than one year, it may be classified as bad debts by the bank, because the credit cards that can't be repaid for more than one year will be written off by the bank, and then some money will be taken out from the current profits to offset the bad debts.

The status of bad debts will always be displayed in the credit report. Bad debts are more serious than overdue. Once the bad debts appear in the personal credit report when applying for loans or credit cards, it is impossible to obtain loans and apply for credit cards. Overdue bad debts can be understood as "blacklist in blacklist". After bad debts appear, if the amount is too low, the bank has basically given up collection and will not sue the debtor to the court. There is a cost for banks to take debtors to court, and they have to pay legal fees and lawyers' fees. If the debtor is still unable to repay after the bank takes the debtor to court, the bank will have to pay the legal fees and attorney fees, but it will not be worth the candle. Therefore, if the debtor's overdue amount is small, the bank will generally not sue the debtor to the court, and the money has not been recovered after one year of collection. Banks will generally write off the money as bad debts, and the credit card status of the corresponding debtor will become bad debts.

The bank sets the debtor's credit card status as bad debt. If everyone fails to pay off the principal and interest, bad debts will always exist. At present, the longest preservation time of personal credit report information in China is five years. The key is that these five years are based on good credit. If personal credit is in a bad state, such as bad debts and overdue, if the money is not settled, no matter how many years later, this state will always exist and will not be eliminated automatically. Therefore, after bad debts appear, everyone should actively deal with them and pay off the debts in time.