Won’t my credit card be blocked if I pay it in installments? Don't think too naively

Credit card installments are interest-free but not free. You need to pay handling fees. This is one of the sources of profit for the bank. For this reason, it is jokingly called installment as a contribution to the bank. Some cardholders believe that since they have made a contribution, banks will be more friendly to cardholders and will basically not block cards. They can only say that the idea is too naive.

After all, credit card blocking is mainly caused by the cardholder’s improper behavior in using the card. Even if you contribute to the bank in installments, it cannot offset the cardholder’s fault. Just like a person who often does good deeds and suddenly makes a big mistake one day, will he not be held accountable for his mistakes because of the good deeds he did? It's impossible even if you think about it.

For this reason, don’t regard installment contributions as a talisman. If you want to avoid being blocked, you’d better use your card well, especially don’t engage in the following behaviors that are easily controlled by banks:

1. Habitual overdue: If you are overdue once or twice for a short period of time, as long as you pay the money back to the bank, you will still be allowed to continue using the card. If you are overdue frequently, and the overdue time is long and the amount is large, you will not be able to repay it for more than 90 days. In this case, the chances of your card being blocked will be higher.

2. Obtain cash illegally: The bank stipulates that credit cards can only be used for daily consumption. Cash can be obtained by withdrawing cash. If you want to use a credit card to obtain cash, it is illegal. If the bank detects abnormal card use, it will A warning text message will be sent. If you still don't calm down after receiving the text message, wait for your card to be blocked.

It can be seen that there is a risk of the card being blocked if the credit card is in installments, and once the card is blocked, it will not be so easy to unblock, so the credit card that has been worked hard for several years will be useless. You need to reapply to use the card, which is not cost-effective.

Will the bank block the card if I withdraw cash every month? Don’t think too simplistic

Credit cards can not only be used for overdraft consumption, but also can be used to withdraw cash for emergencies. However, it is not recommended to use it frequently. One is that the cost is too high, and the other is that it is easily controlled by risks. Some people may ask, since you will be subject to risk control, will the bank block the card if you withdraw cash every month? In this case, you must first understand the reasons why the bank blocks the card.

1. Why are credit cards blocked?

There are many reasons for credit card closure. Common reasons include the following:

1. Serious overdue: that is, if the payment is overdue for more than 3 months and is not repaid, the bank will take action The credit card is blocked, and even if the balance is paid off, it will not be unblocked. Of course, the overdue amount must also be taken into consideration, which is usually calculated in thousands of yuan.

2. Illegal card use: Generally, abnormal card usage behavior is detected by the system, such as large in and out, code hopping in various places, swiping the card outside the normal business hours of the merchant, or being on the bank's blacklist If the merchant swipes the card, etc., it will be considered as cashing out, and the bank will send a text message reminder. If you still go your own way, your card will be blocked.

2. Will the bank block the card for monthly cash withdrawals?

If you withdraw cash from your credit card every month and pay it back on time, the bank will not block the card. After all, cash withdrawals can generate income for banks, and banks are naturally very happy. Nowadays, you have to repay the full amount at once. If you don't pay back after withdrawing cash, your card may be blocked if it is overdue.

In addition, if it is too frequent, as many people withdraw cash every month to pay off last month's debt, the bank will think that the cardholder is short of money, and there will be a great risk of borrowing. In order to control Although the card will not be blocked due to the non-performing rate, the cash withdrawal function of the credit card will be suspended. If you do not allow cash withdrawal, there will be a great risk of overdue payment.

Will the credit card be blocked if it remains empty? If you don’t want to be blocked, you can do this

A friend is doing business and has a 50,000 yuan card in his hand. When it doesn’t work, he will use it to swipe the card to purchase goods. Every time, he swipes a large amount. It is common for the card to be emptied all at once. He heard that banks have tightened risk control and that many people have had their credit cards reduced, so he was worried that if his credit card remained empty, it would be blocked. Actually, this is possible.

1. What does an empty credit card mean?

An empty credit card generally means that you have used up all the credit limit on the credit card, or the credit limit accounts for 90% of the credit limit. Generally, if the remaining limit is less than 10%, it can be considered an empty card. If this is the case, the credit card 3 If the card is empty for more than a month, then the card is long-term empty.

Or some people, in order to avoid risk control, make large-amount purchases with their cards, repay small amounts, and then withdraw small amounts.

For example, if you owe 20,000 yuan, you only pay 2,000 yuan each time, and then you pay the 2,000 yuan out two or three times before paying it back in. Repeating the operation many times will also leave the credit card empty for a long time.

2. Will the credit card be blocked if it remains empty?

Although banks encourage us to swipe more cards, they strictly monitor our card swiping behavior. Those who have left their cards empty for a long time will be considered by the bank to be suspected of cashing out, especially those with large credit cards. It costs tens of thousands. If the card is empty for a long time, it can easily lead to overdue payment. In the eyes of the bank, the greater the risk, the easier it is for the card to be blocked.

On the contrary, for those small-amount credit cards, because the limit is low and the risk factor is relatively small, as long as they are not overdue, they will be fine.

In short, if your credit card is kept empty, there is a risk of the card being blocked. It is recommended that you do not empty the limit and then repay it until the repayment date. It is best to use multiple transactions with small amounts and pay them back at the same time. In this way, high-frequency repayments are used to reduce the negative impact of long-term empty cards.

Will the credit card be blocked if the credit card is recharged?

The card will generally not be blocked under normal use. The reasons for the suspension of the credit card are as follows:

1. Suspicion of cash-out leading to freezing;

2. Repeated overdue repayments;

3. Second-clearance POS machine codes and code hopping: There are currently a proliferation of second-clearance machines in the market. Due to the use of some large merchant models, credit card consumption records are in a state of confusion.

4. For example, if Zhang San lives in Beijing and makes a transaction of 100 yuan in a certain store, the bank registration information of the Erqing POS machine used by the other party may be in another city. Once Zhang San makes purchases at the Erqing POS machines in other merchant classes on the same day, and encounters a similar situation, there will be records of credit card swiping in several different cities in one day, and it is very easy to be monitored and seized by the bank.

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:

1. 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.

2. Second, the credit card risk control and pricing capabilities of each card issuer are uneven. The guidance of upper and lower interest rate limits will help prevent individual card issuers from blindly cutting prices and engaging in price wars, leading to unfair competition and high prices. Risky customers over-leverage, thereby increasing credit risks and causing local chaos in the market.

3. Third, when the information disclosure mechanism needs to be strengthened, setting an upper limit on overdraft interest rates will help prevent individual card issuers from unreasonably charging excessive interest and protect the legitimate rights and interests of cardholders.

The "Notice" cancels the current unified credit card overdraft interest rate standards, implements upper and lower limit range management of overdraft interest rates, and enhances the autonomy and flexibility of card issuers in pricing credit card interest rates. At the same time, card issuers can independently determine the interest calculation method for credit card overdrafts, the interest standards for overpayments, etc., further expanding the space for innovation.

The "Notice" cancels the current regulations on the maximum interest-free repayment period, minimum repayment amount standards and additional conditions for overdraft consumption, which shall be determined independently by the card issuer based on commercial principles and cardholder needs;

Cancel the late payment fee, and the card issuer and the cardholder will agree on the liquidated damages; cancel the over-limit fee, and stipulate that the card issuer shall not charge interest on service fees.

The "Notice" optimizes the management mechanism of credit card cash advance business, clearly defines the types of cash advance business such as cash withdrawals, cash transfers and cash recharges, and formulates relevant requirements for improving services and standardizing management. The daily cumulative limit per card for cardholders to handle cash advance withdrawals through ATMs has been increased from RMB 2,000 to RMB 10,000.

Cash transfers and cash top-ups are allowed to my bank settlement account and my payment account. Card issuers should conduct relevant business based on the principles of risk control and commercial sustainability.

In addition, the "Notice" emphasizes the authenticity, completeness and traceability of credit card transaction information, and strengthens it from aspects such as clarifying the information disclosure responsibilities of card issuers, improving non-personal transaction processing and cardholder loss compensation. Cardholder rights protection mechanism.

Will the credit card be blocked if it is overdue?

Overdue credit cards usually have the following consequences:

1. Incurring overdue interest, liquidated damages and other fees: Overdue credit cards will calculate interest from the day the card is swiped, usually 50,000 per day Interest is compounded on a monthly basis; liquidated damages are generally 5% of the unpaid portion of the minimum repayment amount.

2. Bad credit records: After overdue, bad records will appear on personal credit reports, which will affect future loan applications.

3. You may face criminal liability: If you are overdue for a long time and the overdue amount is large, you may receive a payment reminder from the bank; if you still do not repay the debt after the bank reminds you, you may face criminal liability. Criminal liability.

In general, the impact of overdue credit cards is still relatively large. It is recommended that you make sure to repay on time.

If your credit card is about to expire or has already expired, it is recommended that you call the bank's customer service phone number in time, proactively explain the situation, find out whether you can apply for a deferment of repayment or a reduction of penalty interest, and repay it as soon as possible.

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Duxiaoman Financial will effectively implement the country’s call to support small and micro enterprises to overcome difficulties. Its credit service brand has money to fully support the production and operation of small and micro businesses. Duxiaoman Financial is the owner of most small and micro businesses. first choice. It is reported that 70% of Duxiaoman Financial’s credit users are small and micro business owners. Up to now, Duxiaoman Finance has joined hands with dozens of financial partners to issue hundreds of billions of loans to small and micro business owners.

This answer is provided by Kangbo Finance. Kangbo Finance focuses on interpretation of hot financial events and popularization of financial knowledge. It adheres to professionalism and pursues fun, and produces financial content that people can understand, using vivid and diverse methods. Deliver financial value. Hope this answer is helpful to you.

That’s it for the introduction of credit card unblocking.