What causes the credit card limit to be reduced?

There are actually many reasons for the credit card to be reduced, such as: 1. Cash out. During use, if the bank's system discovers that the user has cashed out his or her credit card. Then, in order to prevent risks from occurring, the bank will reduce the credit card limit. 2. Credit cards are used less frequently. If the user uses the credit card less frequently, the bank will also take back part of the credit limit. 3. There is an overdue situation

A credit card, also called a credit card, is a credit certificate issued by a commercial bank or credit card company to consumers with qualified credit. It takes the form of a card with the name of the issuing bank, validity period, number, cardholder name and other contents printed on the front, and a magnetic stripe and signature strip on the back. Consumers holding credit cards can shop or consume at specially appointed commercial service departments, and then the bank will make settlements with merchants and cardholders. Cardholders can overdraft within the prescribed limit.

According to different card issuers, they can be divided into bank cards and non-bank cards

Bank cards. This is a credit card issued by a bank. Cardholders can shop at the card-issuing bank's special merchants, and can also withdraw cash at any time at any branch of the card-issuing bank or at places with ATMs.

Non-bank card.

This type of card can be specifically divided into retail credit cards and travel and entertainment cards. Retail credit cards are credit cards issued by commercial institutions, such as department stores, petroleum companies, etc., which are specially used for shopping in designated stores or refueling at gasoline stations, etc., and are settled regularly. Travel and entertainment cards are credit cards issued by the service industry, such as airlines, travel companies, etc., and are used for purchasing tickets, meals, accommodation, entertainment, etc.

According to the different objects of issuance, it can be divided into corporate cards and personal cards

Corporate cards. Company cards are issued to various industrial and commercial enterprises, scientific research and education institutions, national party and government agencies, military units, groups and other legal organizations.

Personal card. Personal cards are issued to urban and rural residents, including workers, cadres, teachers, scientific and technological workers, self-employed households and other adult urban and rural residents with stable sources of income. A personal card is applied for in the name of an individual and he/she bears all responsibilities for using the card.

According to the credit status, status and other credit conditions of the cardholder, it can be divided into ordinary cards and gold cards

Ordinary cards. Ordinary cards are issued to cardholders with average financial strength, credibility and status, and their various requirements are not high.

Gold Card.

The gold card is a high-end credit card that pays high membership fees and enjoys special benefits. Cards are issued to those with higher credit standing, stronger repayment ability and credit, or those with a certain social status. The authorization limit of the gold card starts from a higher level, and the additional service items and scope are much wider, so the requirements for relevant service fees and security deposits are also relatively high.

Why is the credit card limit reduced?

The bank credit card limit may be reduced for the following reasons:

1. There is suspicion of cashing out: such as a single day If you have a large bill or make multiple card swipes at a merchant suspected of cashing out, your credit limit may be reduced if you are suspected of cashing out.

2. It may be stolen: If your credit card is stolen, the bank will reduce the limit of your credit card.

3. Not using the card for a long time or swiping the card less: If the number, type, and amount of credit card swiping purchases every month are too small, the bank will consider it a waste of resources and reduce the limit.

4. Overdue credit card: If you fail to pay back your credit card overdue, the bank will reduce your credit card limit in order to stop losses.

If the limit of your Ping An Bank credit card is reduced, you can apply for restoration depending on the situation:

1. If it is due to suspicion of cashing out, contact customer service to explain the situation and apply for restoration.

2. If the credit card limit is reduced due to credit card fraud, banks will generally restore the credit limit to the cardholder after handling the fraud incident.

3. If it is because you have not used the card for a long time or the number of swipes is few, it will depend on your own situation, whether to cancel the card or continue to use it to restore the credit limit.

4. If it is due to overdue payment, you need to make full repayment and proactively contact customer service, and then use the card healthily for a period of time before applying for reinstatement.

What happened to the credit card limit reduction?

The reasons for the credit card limit being reduced are as follows:

1. The number of credit card swipes is too few. After the card is successfully used, the credit card will not be used for a long time or the amount spent every time the credit card is used is very low. The bank will think that the cardholder has no need to use the credit card, which will lead to the credit card limit being reduced.

2. If the credit card is overdue, the cardholder has been in debt for a long time and has not repaid or the amount of arrears is relatively large. If the bank continues to pay reminders multiple times and still has not repaid, the bank will take action against the cardholder. The person's credit card is reduced.

3. Cash-out behavior has occurred on credit cards. Some cardholders want to use online shopping and other methods to cash out. Banks have their own identification mechanisms, and it is easy to see through cash-out situations. Therefore, once the bank knows the cardholder If you cash out, your credit card limit will also be reduced.

4. There is an abnormal situation in the credit card account. When the cardholder conducts transactions overseas or uses credit cards for consumption in high-risk areas, the bank will think that the credit card may have been fraudulently used, which is quite serious. For risky transactions, the account limit will be reduced, and in severe cases, the credit card will even be frozen to prevent stolen consumption.

5. Cardholders who frequently use the minimum repayment amount are also reduced by the bank. Frequent use of this repayment method will make the bank think that there is a problem with the cardholder's repayment ability. In order to reduce risks, the bank Naturally, you need to lower your credit card limit.

Extended information:

1. Tips for increasing credit card limits:

1. Credit cards cannot be used as debit cards

I believe everyone will know this Know the difference between credit cards and debit cards. Credit cards are for credit consumption. Depositing and withdrawing money at will is not a good card use behavior. If you want to increase your limit, use them separately. Credit card cash withdrawals will charge a certain fee, which is not cost-effective.

2. Frequently swipe your credit card

Credit cards have annual fees. Some cards are free of annual fees if you spend a certain amount. Some are free of annual fees after a certain number of transactions. By swiping your credit card frequently, you can not only avoid annual fees, but also increase your credit card limit. If you use it regularly, you will invisibly become an active user of the card issuing bank. When you increase your credit limit, you will receive certain rewards.

If you have continuous and stable consumption and have transactions every month, the card issuer will even take the initiative to provide you with a credit limit increase. Even if you apply for a permanent quota increase, the possibility of being approved is very high.

3. Irregular high-amount consumption

Frequent use of credit cards represents stable activity, while irregular large-amount consumption and the ability to repay it on time will be recognized by the card issuer. For quality customers. It will also become very simple for card owners to apply for a limit increase. Of course, this type of large consumption is not a max-out.

There is a big difference between frequently swiping your credit card and frequently maxing out your credit card. Normally, when applying for a credit card, the limit will not be very high. If you frequently empty your credit limit in one go, even if you can repay it on time later, it will be a big no-no for you to increase your credit limit.

4. Do not cash out maliciously

Credit cards support cash withdrawals. If you withdraw cash normally, you can also increase the limit. However, if it is a malicious cash-out, once discovered, the card will be blocked and the credit will be reduced. It will be more difficult to leverage loans by increasing the limit.

Actually, this can also be avoided. Do not swipe the card multiple times on the same card machine within a short period of time, do not swipe the card with an integer, or do not swipe the card during the business hours. As long as it does not comply with normal consumption logic, it will naturally not be judged as malicious cashing out.

For malicious cash-out behavior, the card issuing bank’s handling results are still very serious. Blocking the card and reducing the credit limit is a better result, but once the personal credit report is on, the impact will be greater.

This is the end of the introduction on why credit card limits are reduced and why credit card limits are constantly reduced. I wonder if you found the information you need?