China’s central bank has rolled out a one-time credit repair policy, aimed at people carrying small overdue credit records from the pandemic years. The move targets household borrowers as authorities try to revive lending and consumer participation.
The policy covers a single overdue amount capped at 10,000 yuan. Only records created between January 1, 2020, and December 31, 2025, qualify. Borrowers must fully repay the overdue balance by March 31, 2026.
Officials said the adjustment is meant to make credit records cleaner, lower hesitation among borrowers, and support lending during a period marked by weak consumer demand.
The credit repair option applies strictly to individuals with one qualifying overdue record during the defined pandemic window. Timing matters.
If the payment is made by November 30, 2025, the default entry will be erased from the credit record on January 1, 2026, and the following payments will be on a different schedule. The erasure of overdue records will take place in the month following the settlement if the settlement is made between December 1, 2025, and March 31, 2026.
The system does all of this without any human intervention. The borrower does not apply, no document is presented, and no communication with the financial institution is made to initiate the update.
The competent authorities have assured that the new policy will not involve any costs. They, however, have cautioned against turning to unlicensed third parties for assistance with credit repair through payments, as they consider such claims misleading and have advised the public against disclosing sensitive information.
Household loan demand in China has cooled in recent months. Consumer caution, slower income growth, and uneven recovery trends continue to weigh on borrowing activity. Retail sales and new lending data have reflected that pressure, limiting momentum across the broader economy.
Economists cited by Reuters stated that erasing small, established overdue accounts would motivate borrowers to resume dealings with credit markets after a long period of reluctance. The measure is primarily aimed at providing financial access to all, especially lower-income families whose credit ratings were affected by pandemic-related disruptions.
The wiping out of small debts that have already been settled is part of the regulators' strategy to eliminate structural barriers to future borrowing.
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The central bank described the policy as a one-off response rather than a permanent shift in credit reporting standards. Officials tied the move directly to the prolonged effects of the pandemic. The measure does not relate to cryptocurrency markets and does not affect digital asset regulation.
Regulatory analysts said the approach could serve as a reference for future crisis-driven financial responses, especially those built on data thresholds and automation. The credit repair step fits within broader macroprudential efforts to steady growth while maintaining financial discipline.
China’s central bank introduced a one-time credit repair policy covering small pandemic-era overdue debts. The system removes cleared records automatically and aims to support household lending during recovery. Eligibility depends on repayment timing and strict thresholds.