Overdue Credit Card Debt: How Long Does It Take to Be Removed from the CIC System?

Using credit cards incorrectly can easily lead to bad debt.

Credit cards are becoming more and more popular in modern life, especially among young people with average incomes or higher. However, if not used properly, users can easily fall into bad debt when they do not pay on time.

Late or overdue payments will cause credit information to be recorded on the National Credit Information Center (CIC) system, affecting future borrowing ability.

According to Article 10 of Circular 11/2021/TT-NHNN, debt is classified into 5 groups:

Group 1: Standard debt (on time or overdue less than 10 days)

Group 2: Debts requiring attention (overdue from 10 to less than 30 days)

Group 3: Substandard debt (overdue from 30 to less than 90 days)

Group 4: Doubtful debt (overdue from 90 to less than 180 days)

Group 5: Debt with potential loss of capital (overdue for more than 180 days)

In which, groups 3, 4 and 5 are classified as bad debt, kept and regularly updated on the CIC system.

How long will bad debt information stay on CIC?

Group 2 debt information will be displayed within 12 months from the date of occurrence. For bad debt from credit cards, data will be stored for the last 3 years and cannot be deleted before the deadline, even if the customer has fully paid off. For outstanding loans, bad debt history can be saved for up to the last 5 years.

Late payments or overdue debts not only cause customers to pay additional penalties and high interest rates, but also reduce their credit scores, making subsequent loans more difficult to access. It is worth noting that currently, no legal individual or organization can "clear CIC bad debt" ahead of schedule, so people need to be extremely vigilant against invitations to quickly handle bad debt to avoid falling into scam traps.

Complaints can be made if errors are found on CIC.

In case the user discovers that the credit information is recorded incorrectly, according to Article 18 of Circular 03/2013/TT-NHNN, he/she can send a complaint to CIC or the credit institution to request information verification and adjustment.

Customers can check their credit status on the CIC system or through the bank where they are using the service. Proactively checking and paying on time will help users avoid unnecessary risks when using credit cards and protect their financial reputation.