What are credit card “credit limits” and “exclusive credit limits”?
The credit limit refers to the maximum amount of money that the bank sets in advance for the applicant based on the credit card applicant's income, credit history, etc. The exclusive credit limit means that the same commercial bank has multiple credit cards, and the credit limits are shared together. When a certain amount is spent on any card or account, the credit limits available for these cards will be reduced accordingly.
For example, a customer has two credit cards from the same bank with an exclusive limit. Card A has a limit of 50,000 yuan, and card B has a limit of 50,000 yuan. When the consumption limit of Card B is 20,000 yuan, the available limit of Card A will be reduced to 30,000 yuan, and the available limit of Card B will be reduced to 30,000 yuan. vice versa. When the card with the maximum quota produces different consumption, be sure to separate the repayments into different cards and accounts when repaying to avoid overdue!
Why is the unused credit limit (that is, the credit card that is activated but not used) included in the personal credit report?
Someone asked, the bank gave me a credit line of 20,000 yuan, but I didn’t use it. Why should it be recorded in the credit report? As mentioned above, the credit limit reflects the bank's recognition of your credit status. Within the credit validity period and credit limit, you can use the credit card repeatedly. When you repay the credit card consumption, the credit limit will be automatically restored. Therefore, the credit limit reflects is positive information about your personal credit profile and should be included on your credit report.
How to understand the maximum credit card debt amount?
In each billing cycle, the card issuer will generally calculate for the cardholder the amount that should be repaid in the current period. The maximum debt amount on a credit card is the maximum amount payable in each billing period.
What do "overdraft balance" and "used limit" mean?
The overdraft balance and used limit reflect the cardholder's current liability situation. In layman's terms, it proves how much the cardholder owes the bank. The overdraft balance is for a quasi-credit card, while the used limit is for a credit card.
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