Let's analyze how to reduce the credit card debt ratio from three aspects.
One: cancel unnecessary credit cards and learn to divide them into stages.
1. Cancel unnecessary credit cards.
Too many credit cards are not something to be proud of, because many times, we may not use some small cards often, and sometimes we forget to pay back. We can cancel some credit cards that are not used often. Here I emphasize the difference between canceling a card and canceling an account:
Card cancellation: it is the cancellation of a single credit card under an individual's name. Next time you apply for a credit card from the same bank, you won't be able to enjoy the treatment and preferential treatment of new customers.
Account cancellation: it means canceling your entire account, that is, if there are more than one credit card in your account, all the cards will be cancelled. The next time you apply for a credit card from the same bank, you can continue to enjoy the treatment and preferential treatment of new customers.
No matter whether you return the card or cancel the account, you can apply for cancellation at the counter or by phone, but it takes 45 days to observe the card and make sure there is no arrears, and the balance and negative numbers will be eliminated for you.
2. A single credit card has too much debt to apply for installment.
If you have just handled the cash installment of 300,000 yuan, then your credit card debt should be 300,000 yuan. After applying for installment, 300,000 yuan will be returned in 36 months. As for the monthly bill, you only need to repay the principal+handling fee, but the credit report does not show a debt of 300,000 yuan. When you apply for installment payment, your real debt is hidden. The more periods you divide, the deeper you hide.
So if a single credit card has too much debt, you can apply for installment in advance, and your credit report will not have so much debt. Of course, there are some pits in the installment fee, so use it with caution.
3. Replace the existing multi-currency card with a single-currency card.
If you don't go abroad often and don't need to spend in foreign currency, you can change your multi-currency card into a single currency, which will reduce the number of accounts and debts.
Second, adjust the application order.
Many people will apply for credit cards and go to loan institutions when they need money urgently, but they will inevitably panic because of anxiety.
As we all know, it takes a long time to apply for credit card approval, and the next batch of time for credit institutions is generally faster.
So, apply for a loan before considering a credit card!
If you find that the credit card institution inquired about your credit record during the bank audit, it will also increase the personal debt ratio. Therefore, when applying for a bank credit card, please don't apply for multiple loans at the same time.
Three: prepayment
Credit cards have a billing date. Paying off debts one or two days before sunrise will reduce the debt ratio.
For example, if the 6th of each month is the bookkeeping day, then pay off the debt before the 4th. It only takes 4 days to continue spending after the 8th. If this cycle is repeated every month, you can get a very low credit card debt ratio in the credit report.
This answer is provided by Kangbo Finance, focusing on the interpretation of financial hot events, the popularization of financial knowledge, the pursuit of professionalism and interest, so that the financial content that the people can understand can convey financial value in vivid and diverse ways. I hope this answer is helpful to you.