What does it mean to apply for compensation from relatives within the time limit?

Make sure you can't afford it and ask your parents to repay it.

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I. What is compensation

At present, many institutions cooperate with insurance companies. When the borrower applies for a loan, he needs to pay the insurance service fee. Once the borrower is overdue, the insurance institution will help him repay the loan, so that the information of "insurance payment" will be displayed on the credit information. Under normal circumstances, more than 90 days overdue will enter the insurance payment process. Within the upper limit of overdue time, credit information will only show overdue.

2. Is compensation and overdue the same thing?

The two are essentially the same thing, but in different forms. As we all know, compensation is the "guarantee" for overdue. For example, users did not pay the money, and banks and institutions also confirmed that they could not recover it. At this time they will apply to the insurance company for compensation. If you have ever been compensated, you can check the credit report.

3. What are the consequences of compensation?

You know, there is no such thing as a free lunch, and compensation is not a good thing. After being compensated, it is usually found in the personal credit report that the guarantee information column of the credit report will display the corresponding loan guarantee compensation information. When this happens, credit information will basically become a black household, all credit information business will not succeed, and loans to buy a house and a car will also be rejected.

4. How to cancel the compensation?

It is almost impossible to apply for a loan if there is a payment record in the credit report. How to clear the compensation record? I tell you, just like loans overdue, only after all the arrears are paid off will the data on the credit information return to normal, and the credit information will be refreshed for five years, and a good credit information record will be maintained during this period, then the personal credit information will return to normal.