What does bad credit debt mean? How to eliminate it?

The so-called bad debts refer to loans that have passed the repayment period, cannot be recovered after calls, are in a sluggish state for a long time, and may become bad debts. Simply put, bad debts are receivables that have not been collected for a long time and cannot be cleared in time.

As we all know, after a bank provides a loan, it will notify the borrower by text message or phone call before the monthly repayment date to repay the loan on time. At the same time, the bank will also conduct post-loan management from time to time to check whether the repayment is normal and whether the use of funds is in compliance. If the borrower fails to make regular repayments for a long time during the repayment period, the bank will initiate a collection process and collect the debt through text messages/phone calls, or even door-to-door collection. And if the borrower changes his contact information or moves, the bank cannot contact the borrower, and the debt cannot be recovered for a long time, which will lead to bad debts.

Bad debts in personal credit reports will have a negative impact, and the bank will reject the application for a loan from the bank. In order to avoid the occurrence of bad credit debts

when borrowing, users must measure their repayment ability and know what kind of income they will use to repay. This can

avoid overdue repayment. .

The information recorded in the personal credit report includes basic personal information, credit information, number of inquiries, etc. This information is shared by financial institutions

as long as there is a default record in one , other financial institutions can see it when checking their credit report, which is why you need to ensure that your credit report record is good.

There are various symbols on personal credit reports with different meanings. For example, 1 means 1 to 30 days overdue; 2 means 31 to 60 days overdue;

Z is used to pay debts; / indicates that the account has not been opened; C is settled, the borrower's loan has been paid off in full, and the loan balance is 0; D is repaid by the guarantor

; # indicates that the repayment status is unknown; * indicates this month No repayment history etc.

Methods to eliminate credit-related bad debts:

1. Timely repayment: Contact the source of the bad debt immediately and pay off the debt, then wait for about 20 working days. Check the credit report and it will usually be updated. However, it does not mean that bad debts are eliminated. Bad debts are recorded for overdue debts. However, if the overdue debts are paid off, they will be automatically eliminated after 5 years.

2. Remember to withdraw money after canceling the card: If the bad debt is caused by overpayment on the credit card, then just go to the bank counter and apply to withdraw the excess money.

Finally, I would like to remind everyone that if you have applied for a bank loan or often deal with financial institutions, it is best to check your personal credit report once a year. If you find that you have accidentally left bad credit, you must contact the bank in time to file a complaint and repay the debt in a timely manner.