Nowadays, credit card consumption has become the mainstream of consumption concepts, which can effectively alleviate financial pressure. For many financial consumers, of course, the higher the credit card limit, the better. However, many consumers find that in the process of using credit cards, sometimes the limit does not increase, but suddenly decreases. What is the reason behind this?

Why credit cards are reduced

1. Abnormal card usage

Under the premise of strictly implementing regulatory requirements and risk control requirements, banks will closely monitor financial consumption Card usage status of card users, and hierarchical management according to high, medium and low risk levels. During the period when a financial consumer holds a card, if the bank finds that there are higher risks in the account based on the abnormality of the card usage, such as overdue payment, etc., the bank will transfer the financial consumer's account according to the "acquisition contract" signed with the financial consumer. The credit card limit is reduced, which is also a manifestation of the bank's control over credit cards.

2. Income does not match expenses

Generally speaking, banks will initially grant an initial limit based on the actual situation of financial consumers. For example, your credit card limit is 30,000, but If you only spend 10,000 per month, the bank will think that you don't need that much, so it will choose to lower the limit. Or, your consumption limit is too high, but your repayment ability is insufficient to make the bank suspicious, and your credit card will be downgraded.

3. Consumption is too monotonous

Banks want financial consumers to diversify their consumption. When financial consumers only spend at the same type of merchants in the short term, the number of transactions is small and the basic usage When the limit is exceeded, the bank will suspect that the financial consumer's consumption behavior is abnormal, so it will also appropriately reduce the credit card limit of the financial consumer.

4. For every financial consumer, credit reporting is very important. Once a financial consumer’s credit reporting is stained, it means they have bad behavior when using credit cards, and the credit card limit The level is inseparable from the individual's credit record, which is usually the reason for lowering the credit limit.

For those cardholders whose credit limit has been reduced, you don’t have to worry too much. As long as you maintain your card usage habits and repay on time, your credit limit is still expected to gradually increase.