What are the reasons for the decrease in credit card limit?

When we use credit cards, various accidents often happen. The credit card is stolen or swiped. The credit card cannot be withdrawn after several years. There are even cases where the card is used and the card is used. The amount does not increase but decreases. So what are the reasons for the decline in credit card limits?

1. The first reason for reducing your credit card limit is probably that you are not using a credit card. If you want a high credit card limit, it is not just a matter of having a good credit record and repaying your debt on time. . If you don't use the credit card after you get it, or only use it a little, and the monthly usage does not exceed 10% of the limit, the bank will think that for people who don't use the card very much, this limit is already full. It's enough. I don't need to increase your quota anymore. You can even reduce your quota a little. It's enough anyway. Therefore, in addition to a good credit record, spending power is also a criterion for bank limit determination.

2. Spending power is very important, as is repayment ability. If your credit card is overdue due to various reasons, don't worry, it will definitely lead to a reduction in the limit. Why? Because the bank will not consider so many factors, they will only consider: If you are overdue, it means that you do not have the ability to repay. If you can't repay, then reduce the limit to a standard that you can still repay!

3. In addition, there is another behavior that will definitely reduce your limit, which is cashing out. What I want to tell you here is that cashing out with a credit card is an illegal act. Many people may think that they are cashing out without anyone noticing, but banks are not stupid either. They even withdraw a sum of money outside of business hours. Or go to a small supermarket, but spend tens of thousands of dollars at a time. This is abnormal consumption, and the bank can also check it. This kind of unreasonable consumption behavior is suspected of cashing out in the eyes of the bank. If If found out, the amount will definitely be reduced.

The above is an introduction to the reasons for the decrease of credit card limit. I hope it can help netizens.

Why is the credit card limit reduced?

The bank credit card limit may be reduced for the following reasons:

1. There is suspicion of cashing out: such as a single day If you have a large bill or make multiple card swipes at a merchant suspected of cashing out, your credit limit may be reduced if you are suspected of cashing out.

2. It may be stolen: If your credit card is stolen, the bank will reduce the limit of your credit card.

3. Not using the card for a long time or swiping the card less: If the number, type, and amount of credit card swiping purchases every month are too small, the bank will consider it a waste of resources and reduce the limit.

4. Overdue credit card: If you fail to pay back your credit card overdue, the bank will reduce your credit card limit in order to stop losses.

If the limit of your Ping An Bank credit card is reduced, you can apply for restoration depending on the situation:

1. If it is due to suspicion of cashing out, contact customer service to explain the situation and apply for restoration.

2. If the credit card limit is reduced due to credit card fraud, banks will generally restore the credit limit to the cardholder after handling the fraud incident.

3. If it is because you have not used the card for a long time or the number of swipes is few, it will depend on your own situation, whether to cancel the card or continue to use it to restore the credit limit.

4. If it is due to overdue payment, you need to make full repayment and proactively contact customer service, and then use the card healthily for a period of time before applying for reinstatement.

What happened to the credit card limit reduction?

The first point: abnormal card usage, abnormal use of the card by the cardholder or regular credit card swiping behavior will directly lead to the credit card being risk controlled, usually It refers to maxing out your credit card at a specific time every month. This kind of card use will be easily regarded as cashing out, so it is reasonable to have your credit limit reduced.

Second point: If you don’t use the card for a long time, some cardholders may have many credit cards in their name, but some of them have basically not been used after application and have been idle for a long time. This type of user will make the bank feel that they are not highly dependent on credit cards and do not need credit cards for consumption, so they will also reduce their credit limit.

The third point: Although credit card overdue is a very common thing, it is also a serious violation of card use, and it will also have a serious impact on personal credit. After a cardholder is overdue, the bank will consider his repayment ability to be relatively weak, and will naturally reduce the card's limit in order to avoid capital risks.

The fourth point: The time interval between card swiping is too short. When the cardholder swipes the card frequently in a short period of time and the amount is large, he will be suspected of cashing out news. If the same credit card is swiped too many times on the same day, the time for each swipe shall not be less than 15 minutes. If the card swiping machine is in a different city, the interval shall not be less than 5 hours.

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Why has the credit card limit decreased?

There may be three reasons:

1. Temporary credit limit expires:

Banks often increase credit limits for cardholders from time to time. It is a temporary limit, which is superimposed on the fixed limit, giving people the illusion that it is a fixed limit. As a result, after using the temporary limit for consumption, the repayment will be offset by deducting the used limit, and then the available limit will be restored. In this way, the limit will be restored. It becomes less.

2. Using the over-limit service:

Many banks have enabled over-limit services by default. After the last consumption has used up the fixed limit, you can still have an overdraft of 5 ~10% of the limit will show a negative value in the credit card limit. The negative part will be filled in for repayment first, and the remaining repayment amount will return to the fixed limit.

3. Derated due to risk control:

Many cardholders do not use their credit cards for daily personal consumption in accordance with the credit card contract, but instead use them to cash out or invest. Financial management, etc. triggered the bank's risk control system, and the limit was immediately reduced after repayment.

Extended information:

A credit card, also called a credit card, is a credit certificate issued by a commercial bank or credit card company to consumers with qualified credit.

It is in the form of a card with the issuing bank name, validity period, number, cardholder 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 the merchants and cardholders. Cardholders can overdraft within the prescribed limit.

Credit cards as stipulated in the relevant laws of our country refer to electronic payment cards issued by commercial banks or other financial institutions that have all or part of the functions of consumer payment, credit loans, transfer settlement, cash deposits and withdrawals, etc.

On December 1, 2017, the "English Translation and Writing Standards in the Public Service Field" was officially implemented, stipulating that the standard English name of credit cards is CreditCard.

Credit card consumption is a non-cash transaction payment method. There is no need to pay cash when consumption, and repayment will be made on the billing date (BillingDate).

Credit cards are divided into credit cards and quasi-credit cards. Credit cards refer to credit cards in which the cardholder has a certain credit limit and can consume within the credit limit and then repay; quasi-credit card It refers to a quasi-credit card in which the cardholder deposits a certain amount of reserve fund as required. When the reserve account balance is insufficient to pay, the cardholder can overdraw within the prescribed credit limit.

The credit card generally refers to a credit card.

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).

The main features of credit cards:

①Credit cards are one of the fastest growing financial services today. They are an electronic currency that can replace traditional cash circulation within a certain range;

②Credit cards have both payment and credit functions. Cardholders can use it to purchase goods or enjoy services, and can also obtain certain loans from card issuers by using credit cards;

③Credit cards are high-tech products that integrate financial services and computer technology.

④Credit cards can reduce the use of cash;

⑤Credit cards can provide settlement services, facilitate shopping and consumption, and enhance a sense of security;

⑥Credit cards can simplify collection Reduce payment procedures and save social labor;

⑦Credit cards can promote product sales and meet social needs.

Why credit cards will be reduced

1. When the cardholder uses the credit card, if the card swiping habit suddenly changes, or the credit card is suddenly maxed out, the bank will think that the cardholder has made a transaction If it is abnormal or suspected of cashing out, the bank will send a warning text message to remind you that credit card transactions are risky and please use the card properly.

2. If the credit card used by the cardholder has always been normal, but suddenly cannot swipe the card for consumption, then there must be an abnormal transaction on the credit card, or it may be that the credit card has been overdue, etc., and has been charged by the bank. Being on the blacklist without knowing it is also a sign of a credit card reduction.

3. If the cardholder has always used the card in a standardized manner, it will be very easy to apply for installment, because banks are eager for high-quality customers to apply for installment repayment and can earn handling fees. Once the application for installment is rejected, it means that the cardholder may become the bank's risk control target. Once entering the bank's black room, the credit limit will be reduced as soon as possible.

The dangers of credit card overdraft:

1. Producing a bad credit record;

2. Interest: calculated at 50,000 per day;

< p>3. Late payment fee: generally calculated as 5% of the unpaid portion of the minimum repayment amount (depending on the regulations of each bank);

4. Malicious credit card overdrafts may also face criminal penalties;

< p>5. If you are blacklisted by the bank, you will no longer be able to have a credit relationship with the bank within 5 years from the date of paying off the debt. Your credit worthiness will not be greatly affected if you repay one or two days late, but overdraft interest will be charged. That is, two days of overdraft interest will be charged based on one ten thousandth of the overdraft amount.

For the above content, please refer to Baidu Encyclopedia - Credit Card

This is the end of the introduction to credit card limit reduction.