Many may be concerned about whether the existence of a pay-as-you-go record will affect individual letters of credit, leading to the impossibility of refinancing. However, this issue needs to be considered from several perspectives。

Does the letter have a loan

First, it needs to be made clear that the record of reimbursement has an impact on credit ratings. The letter-receiving agency will record whether you've ever been paid back, and if you've been paid back, the credit rating will drop. And once the credit rating drops, you're less likely to apply for another loan。

Second, the record of the payment may also have an impact on the bank's loan application. If you've had a record of payment, the bank will consider that your repayment capacity is limited and will refuse your loan application. Even if the bank agrees to the loan, you may be asked to provide more information to demonstrate your ability to repay the new loan。

However, not all banks would be so strict on the record of reimbursement. Some banks take into account the personal circumstances of the lenders, such as past repayment records, income status, etc., and assess your credit position in a comprehensive manner. If you have a good repayment record and current income can pay for new loans, the chances of applying for loans in these banks will be greatly improved。

In addition, there are other ways to improve access to credit. For example, you can make a change with respect to security: find a trusted guarantor or provide a higher-value collateral. If you can provide a guarantee, the bank will assume that even if you do not have the capacity to repay, the repayment of the loan can be secured by a guarantor or collateral。

As a result, credit may still be available for the letter of credit but there are many factors to consider. If you want to improve access to credit, you need to pay attention to your own repayment record and improve your credit position。