After the credit card bill is issued but before repayment, if you still have credit limit, you can continue to consume. Credit cards are divided into credit cards and quasi-credit cards. A credit card refers to a credit card 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 specified credit limit.

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: 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.

Second, the credit card risk control and pricing capabilities of each card issuer are uneven. The upper and lower interest rate guidance will help prevent individual card issuers from blindly cutting prices and engaging in price wars, resulting in unfair competition and high-risk customers. Excessive borrowing will increase credit risks and cause partial chaos in the market.

Third, while 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.

Extended information:

Methods to increase credit limit

1. Fully prepare various asset certificates. At the beginning of the application, because there is no consumer credit record with the bank, the bank evaluates various income assets before deciding how much credit to grant.

If you want to significantly increase the credit limit when applying, you must carefully prepare various credit documents. All proofs of income, house ownership, mortgage purchase certificates, car ownership certificates, bank deposit certificates or securities certificates must be submitted to the bank.

2. Fill in the form details carefully. ?When filling out the application form, there are several small details that affect the credit limit, such as whether there is a fixed telephone number in this city, whether the number is registered in your own name or the name of a family member, whether you are married and whether you have a mobile phone number. Monthly rent, whether it is a registered residence in this city, etc.

3. Don’t forget to swipe your card anytime, anywhere. ? During the period of using the card, make more purchases with the card. Try to choose stores with credit cards for food, clothing, housing and transportation. The more frequently you use it, you will have a relatively stable consumption limit every month. You just change the original habit of cash consumption to swipe the card.

This shows loyalty to the bank. The bank's information system will count the frequency and credit limit of the credit card, and will automatically increase the credit limit in about half a year.

4. Repay your loans on time and maintain good credit.

Only when you owe money can you borrow money. Banks also strictly follow this ancient truth. If you don't repay on time, you will definitely have no credit. It is best to repay in full. Don't just pay the minimum payment, as the recurring interest will be too much.

5. Take the initiative to apply for an increase in your credit limit.

After using your credit card normally for half a year, you can actively submit a written application or call the service phone to adjust the credit limit. The bank needs approval. Under normal circumstances, it will increase your credit limit within a certain range after reviewing the consumption record and credit record. credit limit.

Baidu Encyclopedia-Credit Card