In China, credit card repayment regulations and overdue definitions are set by each card-issuing bank in accordance with relevant regulations and industry practices. StillIf the credit card holder has paid off at least the "minimum repayment amount" listed on the current bill in accordance with the requirements of the issuing bank before the due date (inclusive), the credit card holder will not be considered overdue.
1.From a legal and contractual point of view
The issuance and use of credit cards is actually a credit contractual relationship established between the cardholder and the issuing bank. In this relationship, both parties have clear rights and obligations. The cardholder enjoys the convenient payment and overdraft features provided by the credit card, but at the same time assumes the obligation to repay the loan on time. The "minimum repayment amount" is a repayment method agreed in the contract, which allows the cardholder to repay at least part of the arrears when funds are tight, so as to avoid more serious consequences of default.
2.From the perspective of bank risk management
One of the purposes for which banks set a "minimum repayment" is to reduce credit risk. By requiring cardholders to repay at least part of what they owe, banks can control the risk of bad debts to a certain extent. At the same time, the bank will also impose financial penalties on cardholders through penalty interest, late fees, etc., to urge them to repay the remaining arrears as soon as possible.
3.From the perspective of personal credit history
Although the minimum repayment amount will not be considered overdue, the bank will consider a number of factors when calculating an individual's credit score, including the cardholder's repayment amount, repayment time, debt ratio, etc. Long-term repayment of only the minimum payment means that the cardholder has heavy debts and may not have enough repayment ability, which will affect the personal credit score to a certain extent. The level of personal credit score will directly affect the approval results and interest rate level of cardholders' future applications for loans, credit cards and other financial products.
4.The definitions of "minimum payment" and "overdue" vary from bank to bank.
Therefore, it is advisable for cardholders to read the relevant terms and regulations carefully to understand their rights and obligations when using a credit card. At the same time, you can also consult the bank's customer service through **, the Internet, etc., to obtain more accurate information.
5.For cardholders, to maintain a good personal credit history, in addition to making timely repayments, there are also the following points to pay attention to:
The first is to reasonably control the debt ratio and avoid excessive overdraft;
the second is to regularly inquire about personal credit reports, and promptly discover and correct erroneous information;
the third is to carefully choose the guarantor or the guarantor to avoid joint and several liability;
Fourth, keep personal identity documents and credit card information properly to prevent theft or fraudulent use.
To sum up, repaying the minimum payment on a credit card will not be considered overdue, but only paying the minimum payment for a long time is not conducive to the accumulation of personal credit history. Cardholders should fully understand the relevant regulations and risks, and plan and use credit cards reasonably to maintain a good personal credit history.