As a novice, I only know that credit cards have limits. In the past few days, I have heard from experienced drivers that limits are divided into fixed limits and temporary limits. It sounds complicated, but I don't understand it. So where did the fixed and temporary credit card limits come from?

What do the temporary and fixed credit card limits mean?

A fixed limit means that the card issuer gives the cardholder the maximum credit limit that can be used within a specified period based on the cardholder's credit status. This credit limit can be used repeatedly. Temporary credit limit refers to the credit limit that the bank temporarily increases from the permanent credit limit to meet the temporary needs of customers.

What is the difference between the temporary credit limit and the fixed credit limit?

1. Whether the credit is revolving

The temporary credit limit of the credit card cannot be revolving and can only be used within the validity period. , and the fixed amount of credit can be revolving. If it is used up in this period, it can be used again after repayment.

2. Different validity periods

The so-called temporary limit means that the limit can expire. The validity period of a credit card temporary credit limit increase is generally 1 to 3 months. After expiration, The cardholder's limit will automatically be restored to the original credit limit. If you are not careful, the validity period of the temporary credit limit of the credit card has expired, and you are still paying more than the credit limit, you will be charged a credit card over-limit fee.

3. Different repayment methods

The temporary limit of a credit card can only be paid off in one go, and cannot be repaid in installments, nor can it be included in the minimum repayment amount; while the fixed limit of a credit card can be paid off as per Repay the minimum repayment amount, and you can also apply for installment repayment.