When you have a need for funds, taking a loan may be your salvation, because of its low threshold, its stable downside, and its fast lending. However, there may be doubts as to whether a loan is related to a letter of credit, which we will address in detail below。

What's the impact of being late

The answer to the question as to whether the loan involved a letter of credit was yes. Loans are already part of the Central Bank's credit system, so the records of the loans that you apply for and the repayment of the loans are reported on time, as required by the People's Bank of China. And when you apply for a loan, you need to authorize the loan to check your personal letter, otherwise your application cannot proceed。

What effect would it have if you had borrowed on a loan and had it overdue? First, because of the high amount of overdue payments, which include overdue interest, collection costs, etc., and because this overdue rate is much higher than the loan interest rate, if long overdue, the overdue costs will change considerably, resulting in your loss。

Secondly, if you fail to pay back on time, the platform will naturally not allow you to continue to use the loan line, and it will impose a freeze, even lower, and affect your financial arrangements。

More importantly, after the loan has expired, your overdue record will not only be reported for personal purposes, but may also be recorded in major civil society organizations, which will make it difficult for you to carry out other credit operations, which may be subject to high interest rates, low levels, or even rejection。

In addition, if you fail to pay in time, the Platform will immediately launch a collection, you will be harassed frequently by the caller and will even cause trouble to your family and friends, affecting your daily life and work。

Finally, if the user defaults in bad faith, for more than three months, the platform may initiate legal proceedings and you may be at risk of being enforced or classified as a bearer of faith, which would have a significant impact on your reputation。