Can credit card installment reduce credit debt? After using a credit card for consumption, the credit report will record the credit card limit usage and repayment status, of which the used limit is equivalent to the credit card debt. Whether applying for credit card installments can reduce debt depends on how each bank reports the amount occupied by the installments to the credit report.
It can be divided into two situations: 1. The quota occupied by installments is included in the used quota. In this case, the actual usage quota of each installment will be displayed on the Hong Kong Newsletter, which includes the quota occupied by installments. , that is to say, installment does not reduce the debt ratio. Companies that usually do this include Industrial Bank and China Construction Bank. In this way, there is only one way to reduce your credit debt, which is to restore the used limit through repayment. 2. The limit occupied by installments is not included in the used limit. In this case, the used limit displayed on the Hong Kong Newspaper only includes the amount to be repaid in the current period, while the credit card installment limit is hidden, so It can achieve the effect of reducing credit debt through installments. There are still many banks that do this, such as China Merchants Bank, China CITIC Bank, China Minsheng Bank, Industrial and Commercial Bank of China, etc. If you hold credit cards from these banks, you can apply for installments one month before applying for credit services from other banks to reduce your card debt. In short, whether credit card installment can reduce credit liabilities mainly depends on each bank's reporting of the used limit. I hope this can be helpful to everyone.