What are the consequences of an overflow on a credit card?

What are the consequences of an overflow on a credit card:

1. After the credit card is overfilled, you will be charged a handling fee if you want to withdraw it. Yes, each bank has different regulations for withdrawing overpayments. Most banks charge customers 0.5~1 for withdrawing overpayments from credit cards.

2. If you use overdraft payment for consumption for a long time, the credit card overdraft limit will become smaller. If there is no overdraft limit for a long time, the credit card limit may be reduced.

3. If overpayments on credit cards are not processed for a long time, bad debts will form. Bad debts will have an impact on the cardholder's future card application, loan application and other matters.

Excess deposit, also known as credit card's own deposit, refers to the "excess" money deposited by the cardholder when the credit card is not overdrafted. After recharging a credit card, there may be an "over-deposit" on the credit card, which is equal to the total deposit amount minus the amount owed in the issued bill. Most card-issuing banks will treat cardholders' withdrawals from their own deposits as overdrafts and charge a certain fee.

Most banks charge a handling fee ratio for withdrawing excess deposits ranging from 0.3 to 3, and the minimum charging standards also range from a minimum of 1 yuan or 2 yuan to 10 yuan or 30 yuan. Only Guangfa Bank credit cards offer free withdrawal of excess deposits. For example, if Mr. A deposits 5,000 yuan into his credit card and his outstanding bill balance is 2,600 yuan, the system will automatically repay the credit card debt first, and the remaining 2,400 yuan will remain in Mr. A's account as an "overflow deposit." It can be seen that even if you deposit money into a credit card before the final repayment date, there will not be as much "excess deposit" as you deposit. In the above example, if Mr. A wants to withdraw his 5,000 yuan deposit, the 2,600 yuan that has been used to repay the debt will be treated as an overdraft withdrawal, and he will also need to pay an interest of 50,000 yuan per day.

Credit cards are not debit cards. Do not deposit money into credit cards. There is not much benefit in doing so except for a higher credit limit when swiping the card. Even if you deposit money into a credit card before the final repayment date, it does not mean that there will be as much "excess deposit" as you deposit. "Excess deposits" will not generate any interest. In other words, there is no benefit to "recharging" your credit card in advance and then spending it. Do not withdraw the "excess deposit" easily. Generally, you only need to clear the account before canceling the card. In other cases, you can use the "excess deposit" by directly swiping the card for consumption. If the cardholder wants to increase a certain credit limit, he or she can apply for a temporary limit from the bank's customer service center. There is no need to rely on "excess deposits" to increase spending power.

Credit card overpayment is the money that the cardholder pays more when repaying the credit card, or it may be the money that the cardholder deposits unintentionally. Although there is no profit from depositing overpayments on a credit card, there is a certain handling fee for taking it out. Therefore, it is recommended that cardholders can put it in it for consumption or repayment if they have no urgent needs. For example, if Xiaoxi's current credit card bill amount is 1,000 yuan, but Xiaoxi is worried about hidden fees and the credit card will be overdue when depositing, so she deposits 1,200 yuan into the credit card account. Then, the extra 200 yuan will be Belongs to overpayment.

Can credit card overflow be withdrawn?

Recently, some netizens asked, can the overflow on a credit card be withdrawn? Regarding this issue, users who have just applied for a credit card may not be very clear about it. Let me answer the questions for card friends.

Credit card overdraft is the money left after paying off the overdraft amount. Don't think that after paying off your credit card, you can still put the extra money in it to earn deposit interest. In fact, if you have extra money in it and the bank charges you a fee for cash withdrawal, the only option is to spend it. So try not to have any overflow.

However, some banks (such as China Construction Bank) stipulate that there is no handling fee for withdrawing cash from credit card overflows, so once you find that you have overpaid, you can go to the bank to get it back without any burden.

Credit card overpayment, no matter what happens?

After the credit card is overflown, if you want to withdraw it, you must charge a handling fee. Each bank has different rules regarding overflow payments and withdrawals. Most banks charge 0.5 to 1 for customers to withdraw credit card overflow payments.

If you use overdraft to pay for consumption for a long time, the credit card overdraft limit will be reduced. If there is no overdraft limit for a long time, the credit card may be reduced.

If credit card overflow payments are not processed for a long time, bad debts will form, which will affect the cardholder's future credit card processing, loan applications and other matters. Credit card overflow payment can be spent. As long as the user consumes and pays directly with a credit card, the system will deduct the overflow payment first and then the credit card amount. In addition, overflow payments can also be withdrawn and used, but there is a fee for withdrawing overflow payments, so direct consumption is more cost-effective.

Of course, as long as the user pays attention to credit card repayments and deposits sufficient credit card amount, there will be no problem of additional payment. Credit card overflow deposits will not affect users' use of credit cards, but will mainly affect users' cancellation of credit cards. When a credit card is canceled, there must be no outstanding balance on the credit card, no balance on the card, and no overflow deposit. The employee will ask the user to withdraw the overflow deposit before applying for cancellation. If the user does not cancel the credit card, the overflow deposit on the credit card will have no impact.

Some banks will charge credit card overflow deposit withdrawal fees, which is not cost-effective for users. Users can directly use credit card overflow deposits for consumption or repayment. If a credit card wants to handle credit card sales, there must be no overflow payments on the card. Users can choose to transfer money, withdraw money or swipe their card. The bank will accept credit card sales until there are no overflow payments on the card and the credit card has paid off all outstanding balances. At the same time, after submitting a credit card sales application, the cancellation will not be successful immediately. Users must wait for a 45-day risk period. During this period, the card can only be successfully canceled without any charges. After a credit card is successfully canceled, the card can be restored within a certain period of time. A canceled credit card cannot be restored.

That’s it for the introduction to credit card overflow.