How can the insurance company pay back the money?

Many netizens have raised their own questions. The online loan they borrowed is obviously overdue, but the credit report shows that it has been settled. What's the matter?

First, the insurance compensation changed it for you. This happens because the insurance has paid off your loan, because many loan platforms will let the insurance company guarantee the loan when the borrower applies for the loan, in order to prevent the borrower from not repaying the loan, that is, failing to repay the loan within the time limit. If the borrower 1~2 months does not repay, there will be an insurance company to repay on his behalf. After the insurance company pays off your loan, your credit report will show that it has been settled, but in fact you still owe money to the insurance company, and the creditors have also transferred it to the insurance company. The advantage of this is that your credit information will not leave a stain, but you also have to pay back the insurance company's money, and the insurance company will charge a certain handling fee to increase your repayment amount.

Second, the harm of insurance compensation Although many people think that insurance compensation is better, it is actually harmful. The first insurance compensation requires the borrower to pay a very high insurance premium. After a successful loan, the borrower will pay the insurance company's premium in addition to paying off the loan and interest every month. The second insurance compensation is the credit information system at the meeting. Although you have paid off the loan, once the word insurance payment appears on your personal credit report, it will affect your application for credit cards and loans in regular banks. If you don't pay off the insurance company for a long time, your credit qualification will get worse and worse. If we want to eliminate this, we can only pay off the debts of the insurance company. But the word insurance compensation will take five years to be eliminated in your personal credit report, so insurance compensation is not a good method. You might as well pay off the money you owe yourself.

Third, summary Therefore, before borrowing online loans, we must think about whether we have the ability to borrow online loans. A large number of online loans can't be impulsive, which leads to inability to repay, which makes the credit report tainted and affects future life. We should also be cautious in handling insurance claims, because the presence of insurance will also leave some credit stains on the credit report.