The credit card limit is only 500, why do banks issue low-limit credit cards?

Generally, users who apply for credit cards have real financial needs, and naturally hope that the credit card limit they can apply for is as high as possible. But sometimes it backfires and you get a credit card with a low limit.

Netizen Ms. Liu recently applied for a major bank credit card online, and the bank issued the card not long after. However, after getting the credit card, Ms. Liu was not happy because the credit card limit was only 500 yuan. money.

“There is no way to use such a low limit. I can max it out just by buying something, and it won’t be of any use. I really don’t know why the bank issues credit cards with such a low limit!” Ms. Liu responded to this I am complaining and considering whether to cancel this low-limit credit card.

So, why do banks issue low-limit credit cards?

Generally, banks will refer to the following aspects when approving the initial limit of a credit card:

(1) Proof of income

Proof of income is required when applying for a credit card The higher the income of the applicant, the better. The higher the income, the higher the initial limit of the credit card applied for.

(2) Length of working hours

The longer the applicant works, the better. The longer the working hours, the higher the score, and the higher the initial quota that can be applied for.

(3) Whether there are bank statements or deposit certificates

Sufficient bank statements or deposit certificates are a reflection of the applicant's financial ability and a guarantee of the repayment ability.

(4) Do you have a good credit record?

If you have a credit record and no overdue records, you can get extra points. On the contrary, if you have a "credit white account" or have a past due record It is often difficult for applicants to apply for a credit card or apply for a low-limit credit card.

(5) Educational background, marital status, social security records, etc. will also have a certain impact on the credit card limit.

Generally speaking, customers who are younger, have short or unstable working hours, and have low incomes are more likely to be issued low-limit credit cards.

This is because such customers currently do not have strong repayment ability. Considering the risk factors, banks will not issue high-limit credit cards to them. However, the income of this group will increase and their stability will improve in the future. They may become high-quality customers of banks and have great potential.

However, in order to retain customers and seize market share, banks will issue low-limit credit cards to them, and sometimes zero-limit credit cards.

What should you do after getting a low-limit credit card?

First of all, don’t cancel your credit card easily. Canceling a credit card at will will affect future applications for new cards.

This is because there is a cost for banks to issue credit cards to applicants. From document review to card production and card issuance, the cost of a card exceeds 200 yuan. If you get a credit card but don't use it, don't contribute fees and other income to the bank, but cancel it directly, some banks will "hold a grudge" and reject you if you apply for their credit card again.

The editor of Dianshuai recommends that after you get a low-limit credit card, it is best to open the card and use it, and you can continue to increase the limit during the use.

How to increase the quota specifically?

First of all, develop good credit card swiping habits. Avoid malicious overdrafts and illegal cash withdrawals, otherwise it is easy to have your card blocked directly by the bank.

Secondly, accumulate credit card usage. Although the card limit is very low, we still need to insist on using it. It is recommended that cardholders pay off their entire credit limit before the bill date and ensure repayment in full and on time every month. If this continues for a period of time, the bank will think that the cardholder really needs the credit card and will increase the limit for you.

Again, if you actively request a limit increase, you can go to the bank and submit proof of your own vehicles, real estate certificates and other fixed assets, and try to make the bank change its impression of you and achieve the purpose of a limit increase.

The above situation is probably due to small credit cards. The editor also tells you how to deal with it. There are many benefits to increasing your credit card limit. When you are in urgent need of cash, we can provide you with a POS machine for free. , help you with capital turnover, the rate is lower than that of banks, it only costs 0.55, and it will arrive in seconds. Whether you want to rent a house, pay off money or buy a house, you can follow the public account "Bihuan Technology", there are only things you can't think of, no What we can't do.