Many people think that the more credit cards you have, the better. However, they do not know that holding credit cards from multiple banks can easily lead to multiple credit extensions. In this case, it may be difficult to apply for bank loans or credit cards. Will be rejected unless you can eliminate the long credit.

So, how to eliminate the long credit card credit limit? Let’s find out together below.

In fact, it is very easy to eliminate long credit, but the prerequisite is to understand the reasons that lead to long credit.

Long-term credit extension is caused by handling credit business with more than 2 or more banks/financial institutions, which results in the accumulated credit card limit being too high. Therefore, too many credit cards, credit cards and other loan products will lead to long-term credit extension. reason.

In real life, many people have a misunderstanding about bad credit. They believe that only overdue credit cards or overdue loans are bad credit. In fact, this is not the case. Many banks often regard long-term credit extension as a sign of bad credit. Let’s take a look at it together.

Is long-term credit extension considered bad credit?

A friend once wanted to apply for a mortgage. Before applying for the loan, he had credit cards from 7 banks, with a total credit limit of tens of thousands. Although he was not overdue, he was still rejected by the bank. The bank's comment on his application was that he had long-term credit and had bad credit, so he asked him to eliminate the long-term credit and apply again.

In fact, there are many similar situations like this. Many people who have multiple credit extensions have mostly applied for credit cards or loans at two or more banking institutions, and the total credit amount is relatively high. They often Let the bank have a sense of crisis. After all, if a cardholder is unable to repay after overdrafting, large-scale overdue payments will easily occur, and the bank will be in trouble if it wants to recover the money.

So, what should we do about the bad credit caused by long-term credit extension?

There is only one solution, which is to eliminate long credit. It is necessary to know whether it is caused by too many credit cards, which leads to multiple credit extensions, or whether it is caused by too many loans.

However, most cases are caused by having credit cards from more than 3 banks. After all, applying for a credit card is much easier than getting a loan. In this case, the credit card must be canceled. It is recommended that you choose Close the account, not the card.

After all, canceling a card only means canceling a single credit card, but if the bank that opens the account has multiple credit cards, these are all limited to each other. Unless the credit card with the highest limit is canceled, it will reduce the credit limit. There is no impact. To cancel an account, you can directly cancel all the credit cards of a certain bank. After the credit card is transferred to a new account, there will no longer be a credit limit.

However, credit card cancellation is not done casually. First, you need to cancel those credit cards that are not used in daily life, then you need to cancel small-deposit cards, and third, you need to cancel credit cards that are difficult to increase the limit. I would like to remind everyone that it is best to keep credit cards from the four major state-owned banks, because these banks are the ones that handle most car loans and housing loans.

If it is a loan, the loan needs to be paid off. After settling the loan, remember to ask the financial institution to issue a loan settlement certificate. Some banks will require it.