&# 8203;&# 8203;&# 8203;&# 8203;&# 8203;&# 8203; Credit card is a non cash transaction payment method, which advances future income in advance to meet the current consumption demand. Now many people have the habit of using credit cards in their daily life, but some people have no self-control over consumption, which often leads to the inability to repay their credit cards when they should return them. Overdue credit card will still affect personal credit investigation. How to eliminate overdue credit card records? How to calculate the overdue interest and late fee of credit card? This article brings you the methods to eliminate the overdue records of credit cards and the calculation methods of overdue interest and overdue fine. Let's have a look.
How to eliminate overdue credit card records
1) First, pay off the arrears and overdue related expenses;
2) Continue to use this card
Article 16 of the regulations on the administration of credit investigation industry: the retention period of personal bad credit by credit investigation institutions shall be 5 years from the date of termination of bad acts or events. If it exceeds 5 years, it shall be deleted. The records displayed on bad credit cards only show the records of the past 24 months. After overdue, the best way is to continue to use this card and cover the original negative record with a new repayment record. After 24 months, a new credit record will be generated. After the record is refreshed, it will not affect personal credit.
3) Don't run
Long term overdue will not only generate interest, but also high overdue fine. If you run away, the bank will recognize that you have malicious overdraft and call the police.
4) Timely and full repayment and explanation
If you forget to repay due to negligence, you must repay in full and in time after the expiration. After that, call the bank to explain that you are not malicious overdue. Usually, the bank will help you eliminate the overdue records.
5) Inability to repay shall be explained in time
If you are unable to repay on time due to unemployment or illness, you can take the initiative to state your economic situation to the bank before the last repayment date and declare that you are not malicious arrears. You can apply for delayed repayment and interest preference.
How to calculate the overdue interest and late fee of credit card
According to the credit card regulations of commercial banks, as long as the repayment amount is lower than the minimum repayment amount, the cardholder needs to pay a late fee of 5% of the unpaid part of the minimum repayment amount.
For example, Xiao Zhang consumes 10000 yuan on March 31, and the first day of each month is the bill day. Xiao Ming received the bill in April at the beginning of April. The bill shows that the balance of the bill in the previous period is 0, there is only one overdraft consumption of 10000 yuan in the current period, the due repayment date in the current period is April 25, the repayment amount in the current period is 10000 yuan, and the minimum repayment amount is 1000 yuan.
If Xiao Zhang is really short of money on April 25 and can only repay 500 yuan, Xiao Zhang will not only pay late fees, but also bear interest.
Overdue fine: (1000 - 500 yuan has been repaid) & times; 5% = 25 yuan;
Overdraft interest: 10000 & times; 0.05%× 25 days (March 31 to April 25) + 9500 & times; 0.05%× 5 days = 153.75 yuan.
The total amount of the above two parts will be reflected in Xiaoming's next bill.
In fact, the overdue fine is not very high, mainly because the interest is relatively high. It's most cost-effective to use credit card to pay in full before the repayment date, because in this way you can enjoy the interest free period and reduce your economic pressure.