The consequences of using a credit card over the limit

The consequences of using a credit card over the limit: If the cardholder uses the card over the limit, the bank will charge a certain overage fee for the excess, usually 5% of the excess limit is charged monthly until the cardholder pays off the balance. Moreover, cardholders need to pay off the excess consumption in one lump sum on the repayment date, and the excess cannot be repaid in installments or minimum payments. Generally speaking, it is not cost-effective to overdraft.

Credit card overage means that the cardholder’s accumulated credit limit exceeds the credit card limit approved by the bank. In other words, the cardholder’s accumulated credit limit in a billing cycle exceeds the limit on the billing date. The actual approved credit limit of the card. If the credit card limit is not enough, the cardholder can apply for a temporary limit from the bank in advance. The temporary limit can generally reach 30% of the credit limit. Generally speaking, exceeding your credit card limit will not affect your personal credit, as long as you pay the minimum amount of each bill. However, if you fail to repay the minimum payment on your bill in time before the payment due date, you will be charged late fees and interest, which will affect your personal credit.

1. Can credit cards be repaid in advance

Credit cards can be repaid in advance; and there is no handling fee. Under normal circumstances, the order of credit card repayment is to pay the bills that have been issued first, and then the bills that have not been issued. The remaining money becomes "overpayment", and the overpayment will be spent first by default when swiping the card. Some banks charge handling fees for withdrawing overpaid credit card funds, which needs to be noted by cardholders. That is to say, if we have both paid and unpaid credit card bills, our repayment will be offset against the paid bills first, and the remaining money will be used to repay the unpaid bills. Whether it is full payment or partial payment, the credit limit of the cardholder's credit card will be restored, but what will be restored is the repayment amount paid. If the current bill is not paid off by the final repayment date, late payment fees will be incurred and may also affect the cardholder's credit record.

2. Can I repay the loan in advance when applying for installment?

Credit card installment business involves installment handling fees. Some banks charge them in one go, while others charge them in installments. Generally speaking, if you apply for a credit card installment business, you can repay the loan in advance. For example, if you apply for 12 installments and you have enough money by the time you pay the 6th installment, you can repay the loan in advance. However, for early repayment after a credit card installment, the installment handling fee is often non-refundable or the bank will still charge the handling fee for the remaining installments. However, among domestic banks, ICBC and CITIC currently do not charge installment handling fees for the remaining installments. CITIC credit card handling fees are charged in installments. During the bill or single installment process, a one-time repayment can be made in advance. The handling fees incurred will not be refunded, and handling fees that have not yet been incurred will not be charged.

What should I do if my credit card exceeds the credit limit?

As long as the card payment is successful, the overused credit card limit will be included in the current credit card bill, and the outstanding balance will be paid off before the repayment date. That’s it. Generally speaking, credit card over-limits can be used by 20% of the fixed limit, but over-limits can only be used when the user's limit is insufficient when swiping the card for payment. Credit card cash advances and other over-limits are not supported. If a credit card exceeds the limit, 5% of the amount exceeding the fixed limit will be charged as an over-limit handling fee. The amount used above the fixed limit also enjoys an interest-free repayment period, but it must be paid off in one go.

Credit card types:

Credit cards, also called credit cards, are credit certificates issued by commercial banks or credit card companies to consumers with qualified credit. It takes the form of a card with the issuing bank's name, validity period, number, cardholder's name and other contents printed on the front, and a magnetic stripe and signature strip on the back. Consumers holding credit cards can shop or consume at specially designated commercial service departments, and then the bank will settle the accounts with merchants and cardholders. Cardholders can overdraft within the prescribed limit.

According to different card issuers, they can be divided into bank cards and non-bank cards

Bank cards. This is a credit card issued by a bank. Cardholders can shop at the card-issuing bank's special merchants, and can also withdraw cash at any time at any branch of the card-issuing bank or at places with ATMs.

Non-bank card.

This type of card can be specifically divided into retail credit cards and travel and entertainment cards. Retail credit cards are credit cards issued by commercial institutions, such as department stores, petroleum companies, etc., which are specially used for shopping in designated stores or refueling at gasoline stations, etc., and are settled regularly.

Travel and entertainment cards are credit cards issued by the service industry, such as airlines, travel companies, etc., and are used for purchasing tickets, meals, accommodation, entertainment, etc.

According to the different objects of issuance, it can be divided into corporate cards and personal cards

Corporate cards. Company cards are issued to various industrial and commercial enterprises, scientific research and education institutions, national party and government agencies, military units, groups and other legal organizations.

Personal card. Personal cards are issued to urban and rural residents, including workers, cadres, teachers, scientific and technological workers, self-employed households and other adult urban and rural residents with stable sources of income. A personal card is applied for in the name of an individual and he/she bears all responsibilities for using the card.

According to the credit status, status and other credit conditions of the cardholder, it can be divided into ordinary cards and gold cards

Ordinary cards. Ordinary cards are issued to cardholders with average financial strength, credibility and status, and their various requirements are not high.

Gold Card.

The gold card is a high-end credit card that pays high membership fees and enjoys special benefits. Cards are issued to those with higher credit standing, stronger repayment ability and credit, or those with a certain social status. The authorization limit of the gold card starts from a higher level, and the additional service items and scope are much wider, so the requirements for relevant service fees and security deposits are also relatively high.

What to do if your credit card limit is exceeded?

The portion of credit card repayment that exceeds the limit is generally called "overpayment". This part of the money is in the form of a negative number on the available limit of the credit card. Display, for example, if you use a credit card to spend 100 yuan, but you repay 500 yuan, then your next balance will show "-400 yuan". The money that exceeds the repayment limit will be stored in your credit card and will not generate interest or handling fees. Generally, there are three ways to deal with this money:

1. Withdraw cash

Withdraw the excess money. However, this operation will generate a certain fee. Different banks have different charging standards. For example, Guangfa Bank, no matter you withdraw cash at Guangfa Bank’s ATM machine or its bank counter, whether it is within the bank or an inter-bank, local or bank. No handling fee is charged for any region, as long as you are in mainland China. Other banks, such as Industrial and Commercial Bank of China, China Construction Bank, Bank of Communications, Hua Xia Bank, etc., do not charge handling fees if you handle cash withdrawals at local ATM machines or bank counters. However, if there is one item that does not If the above situation is met, a certain handling fee will be charged. Therefore, you should consult your credit card bank for specific handling fees.

2. Keep the money in the card

Use the card to pay when you buy something. This method can be used if the amount of excess money is not large, and using the money on your credit card to make purchases will not incur interest or fees.

3. Keep the money in the card as a deduction for the next payment

If you leave the money in the card without spending it, it is equivalent to being added to your loan limit. , this part of the amount will be deducted first when borrowing in the next period. In fact, the principle of this is the same as method 2.

If your credit card will continue to be used and the amount of overpayment is not large, it is recommended that you keep the money in the credit card, because the credit card itself is designed for people to prepay consumption. There will be no interest for depositing money in it, but on the contrary, a certain amount of handling fees will be paid for withdrawing money.

Using a credit card to spend this money will neither generate interest nor fees, nor will it affect your credit limit. It is also recommended that you choose a repayment method that is more suitable for your consumption situation during the next credit card repayment period, so as to avoid the worry of overpayment.

Usage

Swiping cards at POS machines

Swiping cards at POS machines is the most common way to use credit cards, and it is a way of swiping cards online. When swiping a card, the operator should first check the credit card's validity period and cardholder's last name and other information.

Then, select the corresponding POS machine according to the card issuing bank and the currency type to be paid, and slide the magnetic stripe of the magnetic stripe credit card on the POS machine, or insert the chip credit card into the card slot to connect to the bank, etc. Pay++, enter the corresponding amount. After remote payment++ accepts the information, the POS will print out a receipt (at least two copies) for payment by card. The cardholder should sign the receipt after checking that the information on the payment receipt is correct.

After the operator checks the signature on the receipt and the signature on the back of the credit card (including that the name completely matches and the handwriting basically matches), the operator gives the credit card and a copy of the credit card payment receipt to the cardholder. At this point, the POS machine The card swiping process is completed.

RFID machine taps the card

Tapping the card on the RFID machine is a new type of credit card usage method, and it is also a networking method. When tapping a card, the operator should first check the credit card's validity period and cardholder's last name and other information.

Then, select the corresponding card machine according to the card issuing bank and the currency type to be paid, enter the corresponding amount, and place the credit card flatly no more than 10cm above the sensor. The RFID machine will emit a signal after sensing the credit card, and then continue the operation process. After Remote Payment++ accepts the information, the printer (if connected) will print out a receipt for payment by tapping the card, but unlike the previous method, the cardholder does not need to sign. , faster and more convenient than previous methods. At this point, the card sensing program on the RFID machine is completed.

Manual order pressing

Manual order pressing is usually used when there is no POS machine or the Internet is not available. The order pressing operation must have a pressure-sensitive copy of the "direct purchase order" (at least two copies) and a telephone number. The inspection work before pressing the order is the same as that of POS machine.

Then, the operator will use the credit card pressing device to print the raised ++, name, etc. on the credit card onto the purchase form, write the amount, date and other information, and then call the acquiring bank's authorization hotline. Call, report the card information to apply for authorization, write the authorization code obtained on the purchase form, and then the cardholder signs after confirming it is correct.

After checking the signature, the operator hands the credit card and purchase order copy to the cardholder. At this point, the manual order pressing process is completed. Authorization calls are usually made immediately.

In some areas with poor communication or good credit ethics, merchants may encounter situations where merchants will deliver goods to complete the transaction after the customer signs the card. The authorization will be completed in the future, but the merchant is at risk of encountering the credit card ++ (if the customer pays with an invalid card, it will not be discovered immediately without applying for an authorization code immediately).

Online payment

From the perspective of cardholders, online payment is considered to be the riskiest among several credit card payment methods, because people with bad intentions may use Steal user information through phishing, eavesdropping on network information, and fake payment++. When paying online, you need to enter ++, the validity period of the credit card, the Visa CVV2 code/MasterCard CVC2/UnionPay CVN2 number next to the signature column on the back of the card, the online transaction password, and sometimes you need to enter your name, a verification code randomly generated by the web page, etc. After the input is completed, click Submit to complete the online payment. With the development of the Internet, the security of online payment and credit card payment has gradually improved, which has also set off the trend of online consumption.

TV and telephone transactions

Similar to online payments, ++, validity period, Visa CVV2 code/MasterCard CVC2/UnionPay CVN2 and other information are required.

Pre-authorization

Pre-authorization is generally used to pay a deposit, that is, freezing a part of the available credit card limit as a deposit. The process of pre-authorization is similar to that of manual order pressing, but the content of the call requires pre-authorization of the corresponding amount. It does not require payment, and there is no need to press the order. You only need to issue a certificate of receipt of the deposit.

Generally, pre-authorization will be canceled by the merchant during checkout. If the merchant forgets to cancel, you can call the merchant to request cancellation. You cannot cancel by calling the authorized agency. Or, wait for the bank to automatically cancel the pre-authorization (generally ranging from 7 to 30 days)

This is the introduction to the credit card limit limit.