Many people, due to slow debt payments, fall into bad debt groups. This has a significant impact on future finance and credit loans. Especially when you want to open a credit card will be extremely difficult. Those of you who are still unclear about bad debt and wonder that Can I open a credit card with bad debt?? Then follow our article below to clarify these issues.
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Find out what is bad debt?
When you borrow money at a bank or any other financial institution. Your loan records will be saved. You are responsible for paying the principal and interest to the lender in the correct amount and on time. If you can’t pay the debt. Or often overdue debt (delayed payment over 90 days). Then your name will be on the bad debt list.
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Depending on the number of days of late payment, you are classified into different debt groups according to increasing levels. When you have bad debt, you will not be able to get a loan at a bank or credit. Even if you have paid off your debt and been removed from the bad debt list, credit activities are still more difficult to be approved than ordinary customers.
Those with bad debt will be greatly restricted by banks in terms of borrowing capital and opening credit cards. That’s why so many people want it Open a credit card when you have bad debt.
Current bad debt groups you should know
Group 1: Debts that are overdue for less than 10 days. This is a group of debts to pay attention to, but not yet bad debts.
Group 2: The level of warning is higher than group 1. But it has not been classified as bad debt. Customers with late payment from over 10 days to 90 days will be classified in this group.
Group 3 – 4 – 5: Bad debt group.
- Substandard bad debt (Group 3): Delayed payment of debt from over 3 months to 6 months.
- Suspicious bad debt (Group 4): Delayed payment of debt from over 6 months to 12 months.
- Bad debts likely to lose capital (Group 5): Delayed payment of debts over 12 months.
CIC stands for Credit Information Center in English. This is the center for storing and managing credit profile information of customers nationwide. CIC Center is under the management and coordination of the State Bank of Vietnam.
When you borrow money, your records are saved on the data system of this center. Debt payment status is also updated and monitored continuously. If you leave your debt past due, it will be converted to Bad Debt. CIC will monitor you until you pay off your debt and complete the probationary period to clear your bad debt.
What is a credit card?
Credit card is a type of card that a bank provides to customers to use to borrow money to spend in advance according to a given limit. This limit is high or low depending on the financial ability of the customer and the level of prestige.
Credit cards are chosen by many people for spending, payment, and shopping. It will help you borrow money from the bank without having to go through many procedures. At the same time, it is also free of interest within 45 days if the loan amount is fully repaid.
Find out the reasons why you have bad debt
What causes customers to fall into bad debt? Let’s find out the reasons below:
- Failure to pay debt in accordance with regulations. Deliberately avoiding debt. Or to delay debt for many consecutive months.
- Use a credit card but don’t pay your debt on time.
- Inability to pay credit debt (default).
- Buy property in installments but don’t pay for many months.
- Sued for failure to pay the debt in accordance with the loan agreement.
Bag Can I open a credit card with bad debt? ?
Question: Bag Can I open a credit card with bad debt?
Answer: Do not open a credit card when you have bad debt.
Reasons why you can’t get a credit card when you have bad debt
- Opening a credit card is actually borrowing money from a bank to spend first, pay later. So when you have bad debt, no bank will allow you to open a credit card anymore.
- Even if you pay off the bad debt in full. Then opening a credit card is still more difficult than ordinary customers. Which bank is easy and flexible, you may be able to open a credit card with a low limit at that bank.
- Normally, if you fall into the group of less dangerous bad debts, the probationary period is 3 years. After 3 years, your name is removed from the list of bad debts on CIC, all financial transactions, credit loans, and opening credit cards will return to normal.
So that I have bad debt and can’t get a credit card, because your credit score has dropped. At the same time, the old debt is still there, so the bank will not trust the customer to use the credit card.
How to remove bad debt fastest?
However, customers can reopen their credit cards if they have paid off all debts and written off bad debts.
To delete bad debt, there is no other way but you have to pay off the remaining debt (including principal, interest and arising fees). Make payments as quickly as possible so as not to fall into dangerous bad debt groups. Then the test time will be shorter.
Strictly abide by the challenging time. During this time you will not be able to apply for a credit card or get a loan. Don’t try to do this at any bank. Because bad debt is saved on the common CIC system. Just have your ID card to check it out right away. No bank will accept loans to bad debtors. Unless you borrow money at black credit, underground activities do not follow the regulations of the State.
Address to self-check bad debt
You can bring your ID card to one of the following 3 addresses to check bad debt:
- National Credit Information Center. Address: No. 10 – Quang Trung – Ha Dong – Hanoi.
- Branch 2 in Hanoi: Room 303B – Vietcombank Tower – No. 198 – Tran Quang Khai – Hoan Kiem – Hanoi.
- Branch of credit information center in Ho Chi Minh City: 1st floor – 68 – Nguyen Hue – District 1 – Ho Chi Minh City.
The reason the bank refuses to make a credit card for the customer
So in addition to the reason of bad debt, the bank does not support credit cards for customers. What are the other reasons why customers cannot register to open a card? Here are the reasons why banks will refuse to issue credit cards to people:
- Customers do not meet the delicate conditions that the bank has set.
- Customers are using too many bank credit cards. This means that you have a lot of different debts. The Bank will not accept the risk that the customer may continue to apply for a credit card.
- The customer’s application file for opening a credit card is incomplete or inconsistent with the bank’s regulations.
- Customers who are on the bank’s bad debt list cannot apply for a credit card. Or get a loan from a bank.
Bankcuatoi.com answered the question Can I open a credit card with bad debt? So before taking out any loan, you need to carefully consider whether you can repay the loan or not. Don’t wait until you fall into bad debt, then not only will you not be able to open a credit card, but you will also lose many other benefits.