The permanent credit card limit is the limit given by the bank according to the comprehensive credit score of the applicant's credit status and other aspects. Although it is called a permanent limit, it does not mean that this limit is permanent and will change with the cardholder's use of the card. So, will the permanent credit card limit drop?

That's for sure. After the credit card is approved, the bank will also conduct post-loan management from time to time. If the cardholder's qualification changes or the card usage is not very good, the permanent credit card limit can also be reduced, especially in the following cases:

1, overdue repayment

Credit cards can only be used for a longer time if they are borrowed and returned. If you don't pay back the overdraft, overdue is equivalent to breach of contract, and naturally you have to pay the price. In addition to paying liquidated damages and penalty interest, you will also encounter a reduction in credit cards. Generally, if the credit card is overdue for more than 3 months, or the overdue times are too many, the credit limit will be reduced in nine cases out of ten.

2. Do not use this card for a long time.

Some people may think that it is my freedom to use the credit card after it is completed. Although this is true, it is equivalent to a waste of resources for banks, so it is also possible to reduce the permanent credit card limit. Prior to this, CITIC Bank issued a notice on credit cards, which reduced the amount of credit cards that had not been traded for more than six months.

3. Illegal card use

This usually refers to what we often call credit card cashing, that is, making false transactions through POS machines or online networks, and withdrawing money from the credit card limit without paying interest. This is an illegal card use behavior prohibited by banks. Once discovered by the bank, lowering the permanent limit is still the lightest punishment.

4. The debt ratio is too high.

This debt ratio includes not only the credit card debt ratio, but also other loan debt ratios, as can be seen from the credit report. If the debt ratio far exceeds the cardholder's repayment ability, most of them will take measures to reduce the permanent credit card limit for risk reasons.

5. Credit information is frequently queried.

When handling bank loans, credit cards and other online loans, some institutions will authorize the inquiry of credit information. Personal credit information is frequently inquired by financial institutions because of loans, cards, etc. There will be suspicion of short-term urgent need of money, which will affect the credit card limit.