Zero-limit credit cards are also a type of credit card and are called quasi-credit cards. Although they have no limit, they still need to enter the personal credit system and pay an annual fee.
The hidden password of zero-limit credit cards:
Credit card experts analyze that the existence of "a few cases" of zero-limit credit cards is mainly due to the following two reasons:
1. Risk prevention and control
As mentioned above, the bank will decide whether to approve the card and the limit based on the applicant's qualifications. So for some applicants with "marginal" qualifications (who meet the card issuance standards, but there are certain risks), banks will reduce the card limit as much as possible, or even directly reduce the card limit to zero, in order to prevent and control risks.
2. Seize the market
In recent years, competition among banks has also been quite fierce. In order to retain potential users and quickly seize the market, some banks have not dealt with applicants with poor financial qualifications. , a zero-limit credit card will be issued. Only by saving money for consumption can cardholders gradually increase their credit limit. On the one hand, this can increase the number of users, and on the other hand, it will not increase the bank's bad debt rate due to the rapid increase in the number of card issuances. From the bank's perspective, it can be said to kill two birds with one stone.
However, the first reaction of many cardholders when they get a zero-limit credit card is to be angry, and they will even cancel the card immediately. In fact, it is not necessary. A zero-limit credit card is essentially a credit card, and you can fully enjoy the benefits of this credit card, such as merchant discounts, points discounts, etc.
In order to increase the credit limit, cardholders can deposit money into their credit cards for consumption and maintain a certain frequency and amount of credit card swiping. After three to six months, the credit card limit will naturally increase. It is relatively fast to increase the limit from 0.