Will the limit of a credit card be reduced if I use it less? It depends on how you use the card!

We all know that the credit card limit is not fixed. The bank will adjust the limit from time to time according to the cardholder's card usage. In most cases, it is easier to increase the limit if the credit card is used more, so Does this mean that the credit card limit will be reduced if you use it less? Let’s find out together below.

Low use of a credit card may not necessarily reduce the credit limit

Whether a credit card will have a reduced credit limit is actually not directly related to the frequency of card use, and no bank has said this. Oh, you If you use your card too little, I will definitely reduce your credit limit.

But from the bank's perspective, if the cardholder swipes less, the bank will get less profit. In addition, if the card is not used frequently for large amounts, it will indeed be a waste of resources, so there is Banks will use credit cards with less card frequency to reduce the limit, but this is an exception.

If the credit limit is reduced because the card is used less, it is likely that the card is used incorrectly:

As mentioned before, the credit card limit is determined by the bank based on the cardholder's card usage. The frequency of card use is one aspect of adjustment, but the impact is not significant and can be ignored. But if there is any violation of card usage during the card use, then the credit limit will most likely be reduced.

1. Overdue multiple times or for a long time:

If you use the card less and fail to repay it in time each time, you will be overdue many times, for example, three or six in a row. , the bank will definitely reduce the amount. In addition, if the number of overdue loans is small, but the overdue time is long, especially if the overdue time is more than 3 months, don’t blame the bank if the credit is reduced.

2. Illegal card use:

Generally refers to credit card cashing out. Usually banks will judge whether the cardholder has cashed out based on the place of consumption, the amount of the card swiped, and the merchant at which the card was swiped.

If you use the card very little, but each swipe costs thousands, and you spend money at the same merchant, etc., and you say you haven’t cashed out, you still have to provide evidence to convince the bank to believe you. Evidence shows that derating is inevitable.

To sum up, there is no direct relationship between the frequency of credit card use and derating. If the credit card is used less and there are illegal card usage behaviors, then it is likely to be derated.

Why so few people use postal credit cards

The main reasons are as follows:

1. The number of postal credit cards issued is very small;

< p>2. You can only go to the counter of the post office to apply, and you cannot apply online;

3. The card approval rate is low and the discounts are few.

1. China Postal Savings Credit Card is a standard credit card product. In addition to revolving credit, consumer installments, cash advance, optional password, and other services, the product also has air ticket and hotel reservations, supplementary card limit adjustment, 48-hour card loss protection, free transaction reminders, high-limit cash advance, and birthday double payment. Double points, exciting gift redemption and many other special services.

2. If you want to apply for the Postal Savings Bank Credit Card Gold Card, in addition to meeting the basic conditions for credit card application, you also need to meet the after-tax annual income of 5 in first-tier cities (such as Beijing, Shanghai, Guangzhou, and Shenzhen) Ten thousand yuan or more; second-tier cities (such as Zhengzhou, Chengdu, Xi'an, etc.) annual after-tax income of 40,000 yuan or more; other areas with annual income of 30,000 yuan or more.

3. The application conditions for Postal Bank credit card are:

1. The applicant must be over 18 years old, not over 60 years old, and have full capacity for civil conduct.

2. The applicant for the supplementary card must be over 16 years old and not over 60 years old, and be a direct relative of the main card holder.

3. Good personal credit, no overdue record.

4. Have a stable job and good income.

5. Have certain personal assets, such as real estate, vehicles, etc.

4. Postal Bank credit card limit is determined by many factors. Postal Savings will determine the credit card limit based on the information and credit status provided by the credit card holder when applying. This limit is used by the cardholder for overdraft. The maximum limit for consumption and cash withdrawal. If you hold multiple credit cards issued by Postal Savings, the maximum limit of the credit cards held under the cardholder's name will be used as the credit limit, not the sum of the credit limits of the multiple credit cards.

5. Postal Bank credit card limit is usually related to your current monthly income, employment industry, occupation, credit report, assets, etc.

If it is your first time to apply for a credit card, you have no loan history, and your current work hours are short and you are an ordinary employee, then your credit card limit will be relatively low. If you have applied for a credit card, have a good personal credit record, and can provide proof of assets, the credit card limit will be relatively higher. Ordinary white-collar credit card limits range from a few thousand yuan to tens of thousands of yuan. The first credit card limit is usually low. It is recommended that you insist on swiping the card after receiving the card, repay the credit card in full and on time, and maintain a good card usage record, which will help increase your credit card limit.

Why do more and more people dislike using credit cards? Too lazy to do it?

Credit cards are more for ordinary individuals. The boss doesn’t even need a credit card. He directly borrows hundreds of millions from the company’s bank. He signs the loan and spends it as he wants. He can buy a Rolls-Leighton or a villa, and all food reimbursements are made with a signature pen. If not, personal liability is unlimited. The company's left hand is replaced by its right hand, and its right hand is replaced by its left hand. If it goes bankrupt, you don't have to pay it back yourself.

Credit cards are convenient for everyone to use ++++ temporarily. Many people consume blindly and over-consumption leads to making ends meet, which is unnecessary. Nowadays, there are more credit services, and many people have more choices. Credit cards have billing dates and repayment dates. If you can't remember them, they may be overdue. Overdue ones will have an impact on your credit report. Many people find it troublesome, so they don't want to apply for it. Another thing is that the Internet is so developed now and virtual card payment is so convenient, so I am too lazy to apply for it.

From my personal experience, firstly, the card processing procedure is slow, which can take up to 1 month. Now Huabei can be used at any time and can completely replace a credit card. Second, credit cards need to keep the repayment date in mind, which is troublesome for some people. If they don’t repay in time, their credit report will be affected, which they don’t want to see.

That’s because they can’t handle large amounts. For a credit card, the limit you are approved for each time is several thousand. There is no use in getting this card. If you can get a credit card with a limit of more than 100,000, it is still very useful, but most people cannot get a card with such a high limit. .

Daddy Ma’s online payment is very fast

The more you use your credit card, the worse it gets—the more you use, the more you owe, and the bank’s money will eventually have to be repaid. This is the United States. The concept of overdraft consumption in Western countries in advance!

It’s okay to use working capital occasionally, but living on credit cards is becoming more and more difficult and troublesome!

In the past, people needed to apply for a credit card to save money and spend money, and some people would have several because of their own special needs. When people opened their wallets, they were also densely arranged. Credit cards one after another, but now fewer and fewer people are applying for credit cards, and some cards have even been destroyed. What are the reasons for this? Why do more and more people stop applying for credit cards? You won’t believe it if you tell me about these pitfalls. Why are there so many pitfalls in credit cards? After many people know about it, they will no longer apply for a credit card. So let’s take a look at the specific reasons!

First of all, we are now in a networked era. Almost everything can be done by the network. Even the payment and payment functions are contracted by the network, and mobile payment terminals are also available. More and more, such as Yu'e Bao, Huabei, etc., are more popular and accepted by the public. And this mobile payment function really facilitates our lives to a great extent.

Secondly, we no longer need to carry a credit card or even a wallet when we go out. We only need a mobile phone to do it all. Moreover, we can apply for and use these online for free. There is no need for many troublesome procedures and steps. It is very convenient and fast, saving a lot of time. If you want to apply for a credit card, you still need to go to a local bank, take our documents, and go through the relevant procedures. From this point of view, of course people are not willing to take the trouble to apply for a card!

Furthermore, few of us now devote time to shopping in physical stores. They usually shop online, which is more convenient. However, some online merchants cannot use credit cards to pay. It needs to be paid through Alipay, Huabei, etc., and there will be no handling fees, which is better than credit cards.

Finally, credit cards have specific repayment dates. Although you can repay them freely at the beginning, if you fail to repay them within the stipulated time, the interest will keep rising. Yes, inadvertently, you may not know how many times your repayments have increased. This is actually a bit scary.

I have to say that there are really many pitfalls with credit cards. When our bank cards exceed a certain limit, bank staff will call us and recommend some discounts to us. The service is said to give you something as a gift, but in fact when you feel you are getting a bargain, that is when the people at the bank are happy! They only told you the good side, but did not show you the bad side such as the fees that need to be paid. Only after you follow their recommendations, you may know the truth. So, it’s not that credit cards are really bad, it’s just that mobile payment may be more suitable for most people than credit cards.

1. The traditional mainstream consumption concept of Chinese people is to save money first and then spend it. Borrowing money to consume and spending in advance have never been mainstream. This is especially true when the income of residents is not very high. So at the end of the 20th century and the beginning of the 21st century, credit cards never really became popular.

Although the number of credit cards issued each year is large and growing year after year, many of them are the result of repeated card applications or bank employee recommendations in order to complete tasks. As a result, many people have several credit cards in their hands, but basically none of them use them.

Furthermore, it was troublesome to repay using a credit card at that time. You had to go to a bank branch every month to repay. For those small and medium-sized banks, there were few business branches and it was difficult to find them. Online banking is far less convenient than it is now.

In short, on the one hand, it is not very acceptable to the consciousness, and on the other hand, it is troublesome to use. So it didn’t develop much.

2. Entering the second decade of the 21st century, especially in recent years, the rapid development of Internet finance, coupled with the development of mobile intelligence, has led to the emergence of many various forms of online lending. You can borrow money without meeting in person, and with the promotion of various channels and methods, more and more young people have accepted the concept of early consumption.

For these young people, the credit limit is not high, and if they are still students, it is not easy to apply for a card. It is much more convenient to borrow online.

Huabei in Alipay is essentially a credit card, but it is much more convenient to use than a bank credit card.

Today’s young people may not necessarily deal with the bank more than once a year.

3. Another difference between credit cards and online loans

After all, banks are formal financial institutions with various strict operating procedures.

Online loans are worse, but they are easier to use and can better stimulate some consumer needs.

A few days ago I wanted to apply for a China Merchants Bank credit card and filled in the information online. A few days later, I received a call from China Merchants Bank and asked for an interview. Just pull it off and do nothing.

In short, in the past, most Chinese people had no awareness of borrowing money for consumption, so credit cards did not develop; after more and more people became aware of borrowing money for consumption, online lending as a credit card Alternatives were developed, and credit cards were pinned back.

It is useless and may become a burden! If many people think a thing is useless or cumbersome, of course they won’t want it.

Take me as an example. Two of my three credit cards have not been used for more than half a year. In the past few days, I have been thinking about how many times I should use them, otherwise I have to pay the annual fee. In the end, one card I can't remember the password, so I'm about to log out.

Nowadays, there are three main reasons why people don’t like to use and apply for credit cards:

1. It is of little use, and you have to pay an annual fee if you don’t use it. Nowadays, except for some businessmen who use credit cards to circulate funds, the meaning of most people's credit cards is just one more card. In China, the reason why many people apply for credit cards is because they want to take advantage of the money. However, after doing it, I found that it was of little use or even useless. I still had to pay it back after more than 50 days. For Chinese people who are keen on saving, it is just to advance their consumption by more than 50 days; but if you don’t use it, you still have to pay it back. The annual fee will be deducted;

2. It is easy to forget to repay the money, and once you forget, your personal credit will be affected. There are now tens of billions of overdue credit cards across the country. In fact, many of them are not due to repayment, but because they have been forgotten. The credit card repayment password is simply magical. I send you a text message to remind you one month in advance. It is almost a few days before the loan is repaid. The bank will not remind you anymore, even if it is overdue, it will usually not notify you. Banks are very bad. If they cannot collect the annual fee, they can only rely on overdue interest.

In fact, if you discover in time that you have forgotten to repay, a little interest is nothing. The key is that it will affect your personal credit, which may affect your ability to apply for a card in the future, or you may not be able to get a loan in the future. This is called the possibility of becoming a burden;

3. Electronic payment is relatively developed, and it is troublesome to swipe cards. Alipay and WeChat are so convenient now. Who still carries cards? Few people carry wallets anymore. Moreover, many places now do not recommend credit cards, and generally use Alipay and WeChat. Even if the credit card can be tied to Alipay and WeChat, it doesn't make sense, because you can use Huabei to overdraw your purchases, and using Huabei can not only increase Alipay points to exchange for things, but also quickly increase your Zhima credit score. If your Zhima credit score is high, It still has great uses. For example, deposits are waived for bicycles, hotels, etc., and the interest rate for borrowing is reduced, etc. Apart from extending the loan repayment period by a few days compared with Huabei, I can’t think of any other use for swiping a credit card;

4. It is difficult to increase the credit card limit. In fact, credit cards can still help us when we make large daily purchases. For example, if we buy a house or a car, and the difference is between 10,000, 20,000 and 50,000, we can swipe the card first, and after more than 50 days, we can pay it back after our salary is paid; However, it is very difficult to increase credit card limits in China. I applied for a credit card five or six years ago with a limit of 10,000. I used to use it frequently. However, I applied for a limit increase last year and was not approved. You can even increase it by 20,000. Ah, because the limit of any credit card you can apply for now is at least 30,000 yuan, so I don’t want to use it anymore. Many people around me have the same situation. As their income increases, they often use credit cards, but they don't increase their credit limits. This also causes many people to have no confidence in the follow-up services of credit cards.

I personally think that credit cards may become a thing of the past in China just like the popular phone cards around 2000.

Credit cards, generally speaking, are used to make purchases in advance. Nowadays, most people have experienced this, and almost all of them have had trouble with credit cards. Either they have been canceled after paying off, or they are still overdue. For example, if you currently have a credit card with a limit of 10,000 yuan, and you go shopping and see something, you really like it, but you don’t have that price, but it is on the credit card. Do you choose to buy it? Most people will choose to buy it. After all, I really like it, but when the credit card repayment period comes, how many people can pay it back in full? How many people are overdue now? With the popularity of credit cards, the threshold for application is getting higher and higher, so fewer and fewer people can apply for a credit card. To put it simply, the poor cannot apply. , the rich look down upon it.

Does using less credit cards have a big impact? You will understand after reading this

With the popularity of credit cards, it has become common for people to have multiple credit cards. However, if you have too many cards, you may not be able to take care of them all. Some credit cards are more commonly used, and some may be used more frequently. Less. Therefore, many people are worried about the impact of using less credit cards. In fact, there are many people who have credit cards and use them sparingly. It is not a big deal. Of course, it does have some impact.

A credit card does not have to be used frequently

After applying for a credit card, there is no hard and fast rule that it must be used frequently. Of course, for banks, the more frequently a credit card is used, the more money they can make from it. There will be more handling fees, but the decision of whether to use the card or not lies with the card owner himself.

Many cardholders apply for credit cards for emergencies, so they rarely use them when they have money to spend. Generally, they only use enough credit cards every year to waive the annual fee. Although credit cards can enjoy an interest-free period, for cardholders who do not have strong self-control, it is a wiser choice to use less.

Of course, using less credit cards also has an impact.

1. It is not easy to raise the credit limit:

This is for sure. After all, banks adjust the credit limit from time to time based on the cardholder’s card usage and credit status. If you use it frequently If you use the card frequently, repay it on time, and develop good card usage habits, your credit limit will definitely increase quickly. On the contrary, if the credit card is used less, it will not be so easy to increase the limit.

2. Possible reduction:

Infrequent use of a credit card will also lower the cardholder’s overall score. When the bank evaluates the cardholder’s card usage, You may feel that the cardholder's consumption needs do not match the credit card, especially if the credit card is used infrequently for large amounts, the limit may be reduced.

3. Unable to enjoy credit card rights

In addition to overdraft consumption, most bank credit cards also have exclusive rights and rich preferential activities, such as Bank of Communications Walmart Credit Card for purchases at Walmart You can get card rebates, which can be used for cash, and there are also discounts on super red Friday refueling. If you use the card less, you won't get these very practical discounts.

To sum up, there are advantages and disadvantages to using less credit cards. This still depends on the needs of the cardholder.

That’s it for the introduction of credit cards that are rarely used.