Uses of credit cards with zero credit limit:

1. Using a credit card with zero limit to make purchases can help cardholders accumulate personal credit;

2. Some banks have no handling fees for claiming overpayments on credit cards. Holding such a zero-limit credit card allows you to make deposits in other places and withdraw cash locally without handling fees, which is very convenient for some cardholders who often make withdrawals from other places;

3. Credit card points can be accumulated normally, and credit card points can be exchanged for gifts, airline miles, etc.;

4. You can use credit cards with zero limit to make purchases, and you can also enjoy various preferential activities launched by the card-issuing bank. , help you save money!

Of course, there are disadvantages to using a zero-limit credit card. For example, it is basically impossible to realize the basic overdraft consumption function of a credit card. Once a zero-limit credit card is opened, it will involve an annual fee. If the cardholder forgets to pay the annual fee, the credit card will be overdue, which will affect the personal credit record and so on.

Extended information

It is reported that in July 2009, in order to regulate and restrict credit cards for college students, the China Banking Regulatory Commission issued the "Notice on Further Standardizing the Credit Card Business": no credit card payments shall be made to students under 18 years of age. Credit cards are issued to students who are over 18 years old;

For students who are over 18 years old but have no fixed job or stable source of income, they must confirm the second source of repayment and their repayment ability, and determine the repayment responsibility in writing , otherwise the card will not be issued.

After the announcement, many banks stopped processing credit cards for college students. However, in the face of the campus consumer finance market with its huge customer base and expected huge room for growth, banks have paid more and more attention to the research and development of college student credit cards in recent years, and have launched a variety of products specifically targeted at college students.

For example, China Merchants Bank enters the campus market by issuing campus version credit cards with a credit limit of 0. The bank’s official explanation of the card is: “The credit limit will be temporarily sealed until the cardholder graduates. By depositing first and then spending, cardholders can normally enjoy the benefits of CMB credit cards such as point accumulation and fee reductions and other exclusive campus benefits. ”

The Shanghai Pudong Development Bank uses parents’ credit enhancement to apply for college student youth cards with quotas for full-time college students. It is understood that if students applying for a card have their parents provide a guarantee, Shanghai Pudong Development Bank will grant a consumption limit of 5,000 yuan to full-time college students, 10,000 yuan to undergraduate students, and 15,000 yuan to graduate and doctoral students; otherwise, the credit card limit will be 0.

Reference: Baidu Encyclopedia - Credit Line