When we use credit cards, we sometimes encounter sudden reductions in credit limits. What is going on? Why is the Industrial Bank credit card reduced?

1. Overdue credit card payments

Overdue credit card payments often occur. Just imagine, if you always owe money but don’t pay it back, the bank will not dare to lend you so much money again. Yours, this is the easiest way to be reduced by the bank.

2. There is an abnormality in the account

If you have a large number of credit card transactions in a certain period of time, and the types are particularly concentrated, it is easy for the bank to suspect cash out. This situation belongs to the account Abnormalities in accounts include stolen cards, etc.

3. Not used for a long time

If your Industrial Credit Card has not been used for more than 5 months, it is also easy to be reduced by the bank. For a credit card that has not been used for a long time, There are serious security issues. For this kind of sleep card, it is also beneficial to reduce the limit. Once fraud occurs, the loss will not be so serious.

4. Credit card cash out

When some criminals use credit cards to cash out, they will cash out through online shopping or POS machines. Industrial Bank will have a set of identification mechanisms to identify credit card cash out behaviors. , for credit cards suspected of cashing out, the credit card will be reduced first and then suspended. In serious cases, criminal liability may also be pursued.

5. Not used for a long time after activation

If the credit card is not used for a long time, it is equivalent to a dormant card, and the limit may also be reduced. Because users apply for credit cards, even if there is no overdraft, the credit limit will occupy capital, causing the bank's capital adequacy ratio to decline. It is hoped that cardholders can make up for this cost and increase their income by contributing handling fees when using and swiping their cards. If the cardholder does not use the credit card for a long time, the bank will think that you have no need to use the card and will lower the limit for you. The credit card limit is lowered to reduce the bank's occupation of capital.

The above is what I have introduced to you about "Why are Industrial Bank credit cards reduced?" I hope this article I compiled will be useful to you.

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