Why the credit card limit has been reduced

1. There is arbitrage behavior. If a user cashes out when using a credit card. Once discovered by the bank, the limit will be reduced. If the situation is more serious, you may be held criminally responsible.

2. Too many cash withdrawals. Withdrawing cash is an inherent function of a credit card. If a user withdraws cash too many times, banks will often think that the user is doing this frequently. Therefore, in order to prevent risks from occurring, banks may also reduce the limit.

3. Abnormal transactions. This situation can be divided into many types, such as credit card fraud or maxing out every month. This may cause the bank credit card to be reduced.

4. Overdue repayment. Credit cards are bank lending products. If a user makes overdue repayments, not only may his personal credit be damaged, but his credit card may also be reduced or frozen. Therefore, users must make repayments on time when using credit cards.

5. Not used frequently. After the user applies for a credit card, if he does not use it frequently or uses it too few times. Then, the credit card limit will be reduced.

Why is the credit card limit reduced?

1. Bad personal credit report

Poor credit report includes many situations, such as the appearance of loan products listed on the credit report Overdue credit has resulted in bad credit, which has affected personal credit; in the past three months, credit reports have been frequently queried by financial institutions, and too many inquiries in a short period of time have caused credit lapses. These are all manifestations of poor credit reporting, which will affect the credit card limit, resulting in the credit card limit being reduced.

2. Illegal use of cards

Credit cards issued by banks are used by cardholders for consumption. Although cash withdrawals are also supported, certain fees need to be paid, and the amount of cash withdrawals is limited. . But in life, many cardholders will try to cash out their credit cards when they are short of cash flow, and use the POS machine to withdraw the credit card money without paying the fees. This is a behavior that seriously interferes with the economic order. , and there is still a certain risk of default when cashing out large amounts. At this time, the bank will reduce the credit card used for cashing out, and in serious cases, the card will be blocked.

3. The frequency of card use is low

If a credit card is not used for a long time, it is equivalent to a dormant card, and there may also be cases where the credit limit is reduced. Because even if a user applies for a credit card without an overdraft, the credit limit will occupy capital, causing the bank's capital adequacy ratio to decline. The reason why banks issue cards to cardholders is that they hope that cardholders can make up for this cost and increase their income by contributing fees for using and swiping their cards. If the cardholder does not use the credit card for a long time, the bank will consider that the cardholder has no need to use the card and will reduce the credit limit.

4. The load rate is too high

After issuing a credit card, the bank will also conduct post-loan management from time to time. If you see the cardholder’s debt ratio on the credit report, If it is too high, then considering the risk of borrowing, the credit card will also be reduced. After all, high debt will make the bank question the cardholder's repayment ability.

How to restore the quota?

1. Regain the trust of the bank

Proactively ask the bank the reason for the reduction and make a representation for the reduction. The bank will find out the situation again based on the content of the representation. If the reduction determination is inaccurate , the card holding limit of the credit card will be restored; if the above behavior of being reduced is true, you need to regain the trust of the bank through the later "card maintenance" behavior: ① Use more credit cards for consumption, and try to diversify your consumption, The habit of swiping large amounts combined with small amounts; ② Avoid unconventional card swiping behaviors, such as cashing out credit cards and long-term emptying; ③ Participate in more bank activities, bank installments, mall promotions, etc.

2. Maintain a good repayment record

Repay on time to avoid overdue payments; repay in full if you are able to prove your strong spending power and repayment ability.

3. Apply to increase the temporary limit

You can actively apply to increase the temporary limit. The bank will increase the limit appropriately based on your consumption level, personal credit and repayment situation.

Please note: The temporary credit limit is valid for 1-2 months. After expiration, the credit limit will be automatically restored to the original limit.

Why is the credit card limit lower than others? The reason was finally found...

Nowadays, many people apply for bank credit cards in order to meet their consumption needs. However, many people often complain that although they apply for the same credit card as others, the approved credit limit is lower than others. In fact, the credit card limit has a great relationship with personal credit conditions. Let’s introduce it to you below.

The credit card limit is the maximum limit for overdraft consumption granted by the bank after a comprehensive evaluation based on the information provided by the applicant when applying for a credit card. The reference factors include the applicant's age, gender, single status, education, Work unit, position, income, etc. Everyone has different credit conditions, and the credit card approval limit is also different.

If someone else’s quota is higher than yours, check out the following reasons:

1. Unstable career

Usually, a stable position It is easier to win the favor of banks, such as civil servants, teachers or employees of public institutions. Their jobs and incomes are relatively stable and they have good repayment ability, so the credit card approval limit will naturally be higher.

2. Low economic income

This is the main reason for low credit card limit. After all, economic income is directly related to your repayment ability. A high economic income means a strong repayment ability, and it is naturally easier to obtain a high credit limit; on the contrary, a low economic income means a weak repayment ability, and banks are afraid that you will not be able to repay the loan, so they will not easily approve large-deposit cards.

3. Card level

The amount of card purchase amount is also related to the card level. The same type of card usually has two or more levels, and the minimum approval amount for each level is It’s different. If you apply for a regular card, the approved card limit will definitely be lower than the platinum card limit.

4. The debt ratio is too high

If some people have too much debt and their income and expenditure are out of balance, even if your past credit record is very good, the bank will consider the possibility that you will be overdue in the future. It will be very large, and you will be classified as a risky customer, and you will not be easily approved for large-deposit cards, so it is best to lower your debt ratio before applying for a card. Most banks focus on the six-month average debt ratio, which requires preparation six months in advance.

Summary: If you want to be approved for a high-limit credit card, you must pay attention to the above points. However, when applying for a credit card, you must consider your own needs. The higher the credit card limit, the better. Because with a high limit, the potential risks are relatively high, so don’t follow the trend and blindly pursue large-deposit cards.

What is the reason for the low credit card limit? Even if the limit is low, there is no need to rush to cancel the card!

According to data, as of the end of September 2018, the number of credit cards issued in my country reached 100 million. Credit cards have gradually entered the lives of ordinary people. However, the credit limit of a credit card is different for everyone. Even if it is the same bank and the same type of credit card, the credit limit will also vary from person to person. Some friends have credit quotas ranging from tens of thousands to hundreds of thousands, while others only have a few thousand yuan. So what causes your credit card limit to be low? What should we do with these cards with lower limits?

What is the reason for low credit card limit?

Everyone has applied for a credit card. Generally speaking, the card limit after the bank places the card is not determined arbitrarily by the bank, but is the result of comprehensive consideration of the qualifications of the card applicant. The main reasons for the relatively low credit card limit are as follows. aspects.

1. The total credit limit on credit cards is too high. The so-called total credit limit is too high means that you have applied for credit cards from many banks before (and have not canceled them), and the cumulative credit limit given to you by these banks is already relatively high. If you continue to apply for a credit card at this time, the bank may set a lower limit for you because you have multiple credit cards and may have too many overdrafts. For the sake of risk control, the bank will set a lower limit for you.

2. It is difficult to prove personal assets. A friend who works in a bank came to me some time ago and asked me to help him apply for a credit card and help him complete the task. I had never applied for a debit card at this bank, which meant I had no bank balances. I thought I could help my friend solve the problem, so I agreed.

A few days later, after I applied for the card, I found that the limit was only 3,000 yuan. I think the reason was that I did not have a savings card in this bank. The bank was not very good at judging my financial resources, so after comprehensive consideration, they gave me a credit card with a very low limit.

3. Have past due records. If you have an overdue credit record before applying for a credit card, it is easy to be unable to get the card or the credit limit will be low after you get the card. Last year, a bank's ETC-specific credit card had a limit of 1 yuan. When the cardholder went to the bank, he discovered that he had an overdue record in the past. Of course, the overdue record cannot escape the bank's review.

How to deal with credit cards with lower limits?

If the credit card limit is relatively low, it can affect everyone's life to a certain extent. If you spend it all without paying attention to the limit, it really makes people feel uncomfortable. So some people want to cancel the card and apply for a new one. Let me tell you here that the card can be sold, but in some cases it is not necessary!

If the credit card and your debit card are from the same bank, it is recommended to keep them first. As for the cards from other banks, you can cancel them depending on the situation, mainly leaving one or two cards. Pay attention to the way you spend when you usually spend, and don’t spend all your quota on large purchases every time. In addition, credit card repayments should be made in a timely manner, and you can make appropriate bill installments, which can increase your credit card limit faster.

If the card has no annual fee, you can also keep it and slowly "cultivate" it. After all, you don't have to sell it and you don't have to pay the annual fee, just in case you need money urgently in the future. Appears, it can also solve urgent needs.

In short, there is no need to insist on a credit card limit. If you spend reasonably and pay back in time, the limit will gradually increase. Besides, for a normal person, a credit card with a limit of about 10,000 is basically enough. If the limit is high, the more you use, the more you pay back, which will cause you trouble. For some friends who don’t have enough self-control, the lower the limit, the better.

Why is the credit card limit so low? Reflect on these aspects

Credit card limits are assessed by banks. Different applicants may have different credit card limits due to different qualifications, but sometimes the qualifications of two applicants are not far apart, but the bank Maybe the amount approved for one of them will be lower. So, why does this happen? Let’s take a look below.

Why is the credit card limit so low? It is recommended to reflect on these aspects.

1. First conduct self-examination

For example, check whether your age meets the requirements for the card you want to apply for; how stable your job is, whether you often change units every now and then, or whether you are in a new job. If you have not worked for the company for more than three months, your credit limit may not be very high, even though your income may be the same as others.

2. Secondly, look at the nature of the work

Whether the industry you are engaged in is a high-risk industry or a high-risk industry, such as sales, real estate agency, waiter, security, business, driver, etc. , because the salary is unstable, high or low, you may be refused to apply for a credit card, and even if you are lucky, the credit limit may be relatively low.

3. If neither of these reasons are the case, then review the submitted application materials

See if they are well packaged and whether your advantages are reflected. For example, people with white households can package in terms of education, position, income, etc.; customers who already have credit cards can package in terms of work income, work phone number, company address, etc.; when applying for a card in a different place, they can package in terms of household registration information, social security payment records, and property records. Packaging etc.

4. Finally, we need to pay attention to two links.

1) Electronic review link: When banks approve credit cards, they usually call the unit for review. The first purpose is to verify whether the credit card is in this unit. At work, one is to verify whether you are applying for a card. Generally, you need to answer questions according to the application information. However, some electronic reviewers do not follow common sense. One of their inadvertent questions may determine whether the credit card can be approved and the credit limit is approved. .

2) Interview: Mainly for online credit card applications, especially for first-time credit cards. After passing the electronic review, you still need to go to the interview. This depends on whether the interview information prepared is complete, as small as a copy of the ID card. Documents as large as proof of repayment ability and assets and financial resources may affect the card approval limit.

This is the end of the introduction about why credit card limits are low and why credit limits are getting lower and lower. I wonder if you found the information you need?