Those who know credit cards must be familiar with the topic of debt ratio. The level of debt ratio will have a certain impact on some people who apply for loans. Many cardholders say that zero bills on credit cards can reduce debt to a certain extent. Today we will analyze the pros and cons of "zero bills" on credit cards.

1. What is "zero bill"

Credit card zero bill means that all outstanding balances on the credit card have been paid off before the bank statement date. This means that you have not overdrafted this month, so the amount you should repay this month will be displayed as 0. At the same time, your credit report will show that you should repay 0 this month.

The core concept of "zero bills" is to reduce debt. This is useful when you apply for a major card or loan, but it is not a wise choice for increasing your balance.

2. Advantages of "0 Bills"

1. It can reduce the debt ratio, handle bank credit business, and make it easier to pass approval smoothly.

2 Having zero credit card bills will leave a good impression on the bank. The bank will think that the cardholder has a low risk of overdue payment and will upgrade it to a high-quality customer.

The most direct benefit of 3 credit card zero bills is that it can avoid overdue payments.

3. Disadvantages of "zero bills"

1 If cardholders want to keep their cards with zero bills, the interest-free period for which they can enjoy the bills will be greatly shortened, thereby increasing the repayment pressure. .

2 Frequently have 0 bills, which does not help at all to increase the credit card limit! It will also waste the cardholder’s comprehensive credit.

3 If the credit card bill is 0 for a long time, the bank’s big data will definitely detect the abnormal use of the card by the cardholder.

4. The impact of credit card "zero bill" on credit limit increase

Because zero bill itself reduces the user's debt, if the cardholder bank is more inclined to have lower debt customer group, the corresponding limit increase rate will be higher. On the contrary, the credit card itself provides interest-free period and installment principal repayment to reduce the pressure on users. In advance, the card holder may also think that the user's demand for funds is not large, resulting in Unwilling to grant more credit lines.

Therefore, it is recommended that users first understand the "habits and hobbies" of their bank, and then make a decision based on their own situation.

In addition, users often use credit cards to make purchases and maintain good repayment habits after consumption, which is conducive to cash withdrawals. If you do not meet the current credit limit, you can directly call the bank's customer service to request a limit increase. The credit will be evaluated after the user's application is accepted.