What should I do if my credit card limit is reduced?
Many cardholders have had their credit card limits reduced by their banks for various reasons, and they came to me to find a solution. Although I am not Bai Fumei, I still have these skills. Haha, let’s take a look at what to do if the credit card limit is reduced?
What to do if the credit card limit is reduced?
1. If the credit card is not used for a long time after activation and the limit is reduced, then It depends on the cardholder's own situation to decide whether to continue to hold the card. If it is indeed of no use, he or she can apply to cancel the credit card. If necessary, try to maintain good credit card usage habits, try to make purchases at different types of merchants, and repay the money in a timely manner. There will be a greater chance of the credit limit being raised after a period of time!
2. If the credit card limit is reduced due to credit card fraud, after the credit card fraud incident is resolved, the bank will generally restore the credit limit for the cardholder. What cardholders need to do is to protect the security of their credit cards and use the card normally to repay on time!
3. If the credit card is reduced due to overdue repayment, the cardholder needs to pay off the overdue amount in time to avoid liability. Huge penalty interest and late fees can even cause a bad personal credit record. After that, you can follow the method of credit card limit increase, swipe the card more and repay on time, etc., and strive to restore the limit as soon as possible!
Bank staff explained that some users do not use their credit cards for a long time after activation, or the amount or number of card swipes is seriously low. As for the credit card limit, it will be considered that there is no need to use the card and the limit will be reduced. In addition, credit card limits are more likely to be reduced due to illegal cash-out, malicious overdue payments, account anomalies and other reasons than a small number of credit card swipes. Therefore, everyone must use the card in a standardized manner and repay on time!
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What are the methods to restore the credit card that has been reduced?
1. Cardholders must regain the trust of the bank.
(1) Actively ask the bank for the reason for the reduction and make a representation for the reduction. The bank will check the situation again based on the content of the statement. If the reduction determination is inaccurate, the credit card limit will be restored;
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(2) If the cardholder really engages in the above behavior of being reduced, he will need to regain the trust of the bank through subsequent card maintenance behaviors:
① Use more credit cards for consumption, Try to diversify your consumption and combine large amounts with small amounts;
② Avoid unconventional card swiping behaviors, such as cashing out credit cards and long-term credit card swiping;
③ Join more banks Activities, bank installments, shopping mall promotions, etc.
2. Cardholders must maintain a good repayment record.
(1) Repay on time to avoid overdue payments;
(2) Repay in full if able, proving the cardholder’s strong spending power and repayment ability.
3. Cardholders can apply to increase the temporary limit.
Cardholders can actively apply to increase the temporary limit, and the bank will increase the limit appropriately based on the cardholder's consumption level, personal credit and repayment situation. Xiaokalong reminds friends to note that the temporary credit limit is valid for 1-2 months. After expiration, the credit limit will automatically restore to the original limit.
4. Cardholders can apply for a new credit card.
(1) The cardholder re-applies for a second card from the same company. Some banks independently review the second card, so there is a certain chance that the credit limit of the second card will be restored to the original limit or be higher or lower than the original limit. Quota;
(2) Apply after half a year after canceling the account. Many banks stipulate that the account is considered a new one if it has been canceled for more than half a year. If approved, the cardholder will be able to obtain a new credit card.
What is a credit card?
Credit card (English: creditcard), also called credit card. It is a non-cash transaction payment method and a simple credit service.
A credit card is generally a special carrier plastic card with consumer credit that is 85.60 mm long, 53.98 mm wide, and 1 mm thick.
It is issued by the bank to individuals and organizations, and can be used to shop, consume, and deposit and withdraw cash from the bank. It is in the form of a card with the name of the issuing bank, validity period, number, cardholder name, etc. printed on the front and a magnetic card on the back. strip, signature strip.
Credit cards are issued to cardholders by banks or credit card companies based on the user's creditworthiness and financial resources. Cardholders do not need to pay cash when using the credit card, and repayment will be made on the billing date (English: billing date).
On April 15, 2016, the central bank issued the "Notice of the People's Bank of China on Matters Related to Credit Card Business", canceling late payment fees on credit cards, introducing liquidated damages, and prohibiting over-limit fees. The new regulations were implemented in January 2017 It will be officially implemented on the 1st.
The debit card is an ordinary savings card. The account attribute is a current deposit account, which can be used for consumption, ATM deposits and withdrawals, etc.; the credit card can be used for consumption, ATM deposits and withdrawals, etc. The biggest advantage is that it can Overdraft (with a certain credit limit)
Generally, bank cards are divided into two types: credit cards and debit cards.
Credit cards are divided into credit cards and quasi-credit cards. A credit card refers to a credit card in which the card-issuing bank gives the cardholder a certain credit limit, and the cardholder can consume within the credit limit first and repay later. A quasi-credit card refers to a credit card in which the cardholder first deposits a certain amount of reserve fund as required by the bank. When the reserve fund is insufficient to pay, the cardholder can overdraw within the credit limit specified by the card-issuing bank.
Debit cards are divided into transfer cards, special cards and stored-value cards according to different functions. Debit cards cannot be overdrawn. Debit cards have the functions of transferring money, depositing and withdrawing cash, and spending money. A special card is a debit card used in a specific area and for special purposes (referring to purposes other than department stores, restaurants, and entertainment industries). It has the functions of transferring funds, depositing and withdrawing cash. A stored-value card is a prepaid wallet-style debit card in which the bank transfers funds to the card for storage at the request of the cardholder and directly deducts funds from the card during transactions.
What to do if the credit card limit is reduced?
If the credit card limit is reduced, the user can increase the limit through the following methods: use more installments in the daily use of the card; Pay attention to the following points: first, swipe your card more often, making at least 25 purchases per month; second, diversify your consumption, it is best to use more high-rate merchants, and don’t just focus on catering or wholesale merchants; third, cooperate with overseas airports.
When the credit card limit is reduced, it is usually because the system thinks that you are suspected of cashing out, or you have not used it for many months. If you want to increase the limit, it is recommended that you diversify your credit card consumption and make appropriate installments, even if you cash out Not on the same POS machine, and during normal working hours, try not to swipe integer numbers.
There are ways to improve credit card limits if they are reduced:
Countermeasure 1:
Consume more. If you can use a credit card to swipe, use a credit card to spend. If the amount swiped is larger, you can also swipe it in multiple installments. If the frequency of credit card swiping increases, the credit card limit will not be reduced.
Countermeasure 2:
Repaying money on time and spending more can reflect your spending power and good credit. In this way, the bank will not only not reduce your limit, but may also take the initiative to You increase your limit because banks like high-quality customers who spend more and repay their loans on time.
Countermeasure 3:
Participate in bank card swiping activities. Every time a bank launches a card swiping promotion, you must actively participate. Not only can you get points and cash back discounts, but you can also accumulate credit.
What should I do if my credit card has been reduced?
If the credit card has been reduced, the remedies are as follows: if the user repays every payment in full, the bank will consider the user to have a strong repayment ability. , thereby restoring the credit card limit; the user uses a credit limit of about 80 per month, which means that the user has strong consumption needs, and the bank will consider restoring the credit card limit as appropriate; repay every period on time and do not use the credit card in violation of regulations. This This is necessary if you want to restore your quota.
According to Article 7 of the "Regulations on the Supervision and Administration of Credit Card Business of Commercial Banks": A credit card refers to a credit card that records cardholder account information, has bank credit lines and overdraft functions, and provides cardholders with relevant banking services. All types of media.
Credit cards stipulated in the relevant laws of our country ("Interpretation of the Standing Committee of the National People's Congress on Relevant Credit Card Regulations") refer to credit cards issued by commercial banks or other financial institutions with the functions of consumption payment, credit loans, transfer settlement , cash deposit and withdrawal and other full or partial functions of the electronic payment card. 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 so-called credit card generally refers to a credit card only.
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).
On May 25, 2021, the Supreme People’s Court issued and implemented the “Regulations of the Supreme People’s Court on Several Issues Concerning the Trial of Bank Card Civil Cases.”
What to do if your credit card has been reduced?
Whether your credit card has been reduced to save your life, the most important thing is to see why you have been reduced, and then take relevant remedial measures. Let’s take a look at the main reasons for the decline in bank credit cards. Since the second half of 2018, the credit card risk control work of many banks has been significantly strengthened, and many netizens have had their points reduced or even their accounts banned due to irregular card use. Among many banks, China Guangfa Bank, Ping An Bank, etc. They have become the hardest-hit areas for envelope-dropping cards.
This is the end of the introduction about what to do if your credit card limit is reduced and whether you can increase your credit card limit after reducing it. I wonder if you found the information you need?