The credit card has a limit but the balance is insufficient

1 The credit card amount exceeds the available amount

When using a credit card to make a transaction, if the credit card limit is not enough to cover the consumption amount , it will prompt that the balance is insufficient.

2 Card swiping is restricted

If the credit card has set a single transaction limit, when the amount of the card swiped exceeds the single transaction limit, it will also prompt that the balance is insufficient; and if the credit card has a daily limit set , when credit card consumption exceeds the single-day limit, insufficient balance will also occur.

3 Consumption is prohibited

If the credit card is frozen, the credit card limit cannot be used, so when using the credit card to swipe the card for consumption, the credit card cannot use the credit limit to pay, so Insufficient balance will be displayed.

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The current balance of a credit card refers to the total amount of consumption that has been recorded on the credit card so far.

The calculation method of credit card available balance = total limit - current balance is wrong. Because consumption is not recorded in real time, and the consumption recording time is generally one day. If there is consumption in the credit card that has not been recorded, although it is not included in the current balance, the limit has been occupied. Therefore, the calculation formula of the credit card's available balance is: available limit = credit Total limit - current balance - consumption amount that has been used but not recorded in the account

Available limit = credit limit approved by the bank - outstanding balance on the bill that has not yet been paid - transaction amount that has not been recorded but has occurred - other related interest, cost.

Note: The unpaid credited amount refers to the amount of card transactions that have been billed but you have not yet returned; the accumulated amount that has been used but not credited refers to the amount of card transactions that have occurred but have not yet been billed. ;Other related interests and fees refer to interest on cash withdrawals or installment payments.

Credit line, also known as "credit limit", refers to a certain amount of credit limit granted by a bank to its basic customers, that is, within a specified period of time, the enterprise can recycle this amount of money. For example, a company applies for a one-year export bill quota of 2 million U.S. dollars. If the company uses it five times, the usable amount is 10 million U.S. dollars. If it is used ten times, the usable amount is 20 million yuan. This solves the company's short-term funds. Difficulty in turnover has improved the speed of corporate capital circulation and also improved the efficiency of corporate capital use.

In April 2016, the People's Bank of China issued the "Notice of the People's Bank of China on Matters Concerning the Credit Card Business", which came into effect on January 1, 2017.

The "Notice" requires the implementation of upper and lower limit management on credit card overdraft interest rates. The upper limit of overdraft interest rates is 5/10,000 daily interest rates, and the lower limit of overdraft interest rates is 0.7 times the daily interest rate of 5/10,000ths.

Mainly based on the following considerations: First, the implementation of step-by-step and gradual reforms will help card issuers further accumulate pricing data and experience during the transition period, and guide them to improve the credit card interest rate pricing mechanism.

Second, the credit card risk control and pricing capabilities of each card issuer are uneven. The upper and lower interest rate guidance will help prevent individual card issuers from blindly cutting prices and engaging in price wars, resulting in unfair competition and high-risk customers. Excessive borrowing will increase credit risks and cause partial chaos in the market.