Why can’t I cancel the first credit card? There will be these effects

In real life, cardholders often apply for many credit cards, and some apply for several credit cards at the same bank. The limit of the first credit card will be relatively low, and the limit of the second card will be lower. If so, I plan to cancel the first card. But I heard that the first credit card cannot be canceled, and I wanted to know why. Today, we will give a brief introduction.

Why can’t I cancel the first credit card?

In fact, it is not absolute that the first credit card cannot be canceled. If you only have one credit card in a bank, it is best not to cancel it, especially if you have never opened a card.

Because cancellation will also be recorded in the credit reporting system, which will affect your ability to apply for a credit card again at this bank. After all, there is a cost for issuing a bank card. Each card costs at least 200 yuan. Canceling the first card without even using it is a waste of bank resources. The bank will not be able to recover the cost, and it will increase the review requirements for the second card. Cards will not be approved easily.

If you have already applied for two or three cards, it doesn’t matter if you cancel the first card. Many banks now limit the number of cards held by the same bank. In addition, multiple credit cards are not enough. It is easy to manage. Some repayments need to be made separately. It is very troublesome to pay back the wrong card. If the first card has a low limit and average benefits, it can be canceled.

So, how to cancel a credit card?

Before canceling, you need to confirm two things. One is whether the card has been overdue, and the other is the limit on the card.

1. If there is an overdue credit card, although the debt has been paid off, it cannot be canceled. Otherwise, after cancellation, no new repayment record will be generated, and the overdue record will always exist.

2. There is a requirement for the credit limit in the card, that is, the credit card must have as much limit as the bank gives before canceling it. It cannot be more or less before it can be cancelled. After making a phone call to apply for cancellation, you need to pay attention. 45 days, during which it is confirmed that there will be no arrears and balances, and it will be officially canceled on the 46th day.

Why the first credit card cannot be canceled

1. Why the first credit card cannot be canceled

It is not absolute that the first credit card cannot be canceled.

If you only have one credit card in a bank, it is best not to cancel it, especially if you have never opened a card. Because cancellation will be recorded in the credit information system, it will affect the application of credit cards at this bank. The bank will increase the review requirements for the second card and will not easily approve the card.

If you have already applied for the second or third card, it doesn’t matter if you cancel the first card. Many banks now limit the number of cards held by the same bank, plus multiple credit cards. It is not conducive to management. If the first card has a low limit and average benefits, it can be canceled.

2. Credit card

Credit card, also called credit card, is a credit certificate issued by a commercial bank or credit card company to consumers with qualified credit. It takes the form of a card with the issuing bank's name, validity period, number, cardholder's name and other contents printed on the front, and a magnetic stripe and signature strip on the back. Consumers holding credit cards can shop or consume at specially designated commercial service departments, and then the bank will settle the accounts with merchants and cardholders. Cardholders can overdraft within the prescribed limit.

Starting from January 1, 2021, the credit card overdraft interest rate will be determined independently by the card issuer and the cardholder through independent negotiation, and the upper and lower limit management of credit card overdraft interest rates will be cancelled. The daily interest rate is 0.7 times 5/10,000).

3. Credit card repayment methods

1. Repayment within the card issuing bank

This method includes: card issuing bank counter, ATM, online banking, automatic transfer, Telephone banking repayment, etc. After repayment, the credit card limit will be restored immediately, and the payment will generally be credited to the account after the system processes it on the same day.

2. Weiyintong POS mobile phone

Weiyintong POS mobile phone is a mobile financial system personal payment terminal, which can be used to directly swipe credit cards for repayment, as well as transfer and other services. , instant payment.

3. Transfer/remittance repayment

It is mainly divided into two methods: inter-bank in the same city and inter-bank in different places. Regardless of the method of transfer or remittance, the remittance bank will charge a certain fee. At the same time, the time it takes for the money to arrive and the convenience of repayment are not as good as intra-peer repayment, online repayment, convenience store repayment and other methods.

4. Online repayment

The more common domestic online platforms include: UnionPay Online, Kuaiqian, Shengfutong, Alipay, Tenpay, etc. Depending on the platform and bank you choose, the charging standards and specific payment arrival time will be different.

5. Xinpaytong repayment

The "Xinpaytong" smart card swiping phone was independently developed by China UnionPay, certified by the Bank Card Testing Center, and approved by the China UnionPay inter-bank information exchange network Providing innovative electronic products supported by financial services.

Why is it difficult to cancel the China Merchants Bank credit card (debit card)?

It is not difficult to cancel a China Merchants Bank credit card (debit card). As long as the cardholder brings his or her ID card and credit card (credit card), he or she can go to any outlet to cancel the credit card (debit card) account. or card cancellation procedures. The reason why it is difficult to cancel a credit card is because in order to retain customers, banks usually go back and persuade cardholders to give up the idea of ??canceling their cards. However, as long as the balance on the credit card (debit card) has been settled, customers can cancel the card as they wish.

In addition, even if you cancel the credit card (debit card) business, the previous overdue records cannot be canceled. The overdue records will be automatically eliminated 5 years from the date of settlement. If you don’t want to have overdue records in your personal credit report, it’s best to repay every payment on time.

Why can’t a credit card be canceled if it is overdue?

The current version of the credit report is the second-generation credit report. Compared with the first-generation credit report, a lot of content has been added, including repayment records for the past five years and monthly repayment records. It will all be displayed, including the repayment amount, the amount due, etc. This also means that if you cancel your credit card after paying off the credit card overdue, you can still check the overdue record of the credit card.

The important thing is that if a credit card is canceled and can no longer be used, no new records will be generated to overwrite the overdue records. In this way, the overdue records will remain on the credit report forever. Twenty years later, if a credit check can still be found, this is equivalent to being a black account forever.

So the correct thing to do when a credit card is overdue is not to rush to cancel the credit card after repayment. Instead, call customer service and ask if the status of the credit card is normal and see if you can still use the card to make purchases. If so, You must continue to use your credit card if you can. Even if the credit card limit is reduced to only one yuan, you still have to spend money on the card.

Only in this way can a new credit record be generated and overdue records slowly be covered. Although it takes 5 years to eliminate bad records, the impact will be much smaller. As long as there are no overdue credit records during the period, you can apply again later. Credit cards and loans still have a chance of success.

In short, you must not cancel your credit card after it is overdue. Instead, you must continue to use the card for at least 2 years, so that you have a chance to restore your credit report; otherwise, the overdue record will be frozen after cancellation, and there will be no chance of restoring your credit report. It's possible.

Extended information:

New rules on credit card overdue:

Concerning the new rules on credit card overdue, customers need to pay attention to the following points:

1 .Credit card penalty instead of late payment fee:

When the cardholder fails to repay the credit card by the due date or the repayment amount is less than the minimum repayment amount, the unpaid portion of the minimum repayment amount will be charged each time. 5. Liquidated damages are charged. The minimum or maximum fee is stipulated by the bank. For example, China Construction Bank stipulates a minimum of five yuan, one dollar, or one euro.

2. Changes in sentencing standards:

Previously, if an overdue credit card was suspected of malicious overdraft, the amount would be more than 10,000 yuan (less than 100,000 yuan), and it would be deemed as criminal law. The amount is "large"; if the amount is more than 100,000 yuan (less than 1 million yuan), it is deemed to be a "huge amount" stipulated in the criminal law; if the amount is more than 1 million yuan, it is deemed to be an "especially huge amount" stipulated in the criminal law.

The Supreme People's Procuratorate and the Supreme People's Court revised it to: Only malicious overdrafts on credit cards with an amount of more than 50,000 yuan (less than 500,000 yuan) will be considered a "large amount" stipulated in the criminal law; If the amount exceeds 500,000 yuan (less than 5 million yuan), it is deemed to be a "huge amount" stipulated in the criminal law; if the amount exceeds 5 million yuan, it is deemed to be an "especially huge amount" stipulated in the criminal law.

Negotiation skills for overdue credit cards:

After overdue, you should proactively contact the bank as soon as possible, submit materials proving your insufficient repayment ability, and finally express your willingness to repay. If the user has a good attitude and is indeed overdue due to special reasons and is subsequently unable to repay the loan, the bank will consider agreeing to the user's negotiated repayment request as appropriate.

How to reduce or reduce interest on overdue credit cards:

After your credit card is overdue, if you want to reduce or reduce interest, you can apply to the card-issuing bank for an interest suspension. If the application is successful, interest will no longer accrue on subsequent arrears, which will naturally provide some relief. However, everyone needs to note that the interest accrued on previous arrears will not be forgiven. It is still better to be recorded on the bill together with the principal, and the customer must pay it off on time.

Even if the customer directly applies for interest exemption, the bank will probably not agree. If the customer cannot pay the debt for a while, he or she can try to extend the repayment period and repay the debt in installments while applying for a suspension of interest rates. The bank will consider this at its discretion.

As long as the customer does not intentionally fail to repay, but does not have the ability to repay, the bank may agree, and the customer will then repay the debt in installments on time according to the new repayment plan negotiated with the bank. That’s it.

This is the end of the introduction to why credit cards cannot be canceled.