The following are some common issues and explanations about credit card credit limits!

According to the relevant regulations of the People's Bank of China, if you use a card in excess of the credit limit, the bank will charge you for the amount exceeding the credit limit. Over-limit fees will be charged.

1. What is a credit limit?

Based on your application, the bank will approve a certain credit limit for your credit card, and you can make purchases or withdraw cash within this limit. The supplementary cardholder can share the total credit limit with the principal cardholder, or the principal cardholder can set a credit limit for the supplementary card. If it is a dual-currency international card, the credit limit can also be set by the RMB and foreign currency accounts. ***Enjoy. The credit limit will be adjusted regularly by the bank, but you can proactively provide relevant proof of financial resources to request an increase in the credit limit. In addition, when you need a higher limit within a certain period of time when traveling abroad, moving to a new home, etc., you can also request to increase the temporary credit limit.

2. How to establish the initial credit limit?

The credit scoring system will calculate a credit value based on various aspects of the information you provide, and then convert it into your credit limit, which varies from person to person. Generally speaking, the better an individual's credit record is and the stronger his financial resources, the higher his credit limit.

3. What is the available quota?

The available limit refers to the credit limit of your credit card that has not been used. The calculation method is as follows:

Credit limit - unpaid amount that has been paid out - accumulated amount that has been used but not recorded = available limit

For example: your credit limit is 20,000 yuan , the unpaid accounted amount is 10,000 yuan, and the used but unaccounted amount is 4,000 yuan, then your available limit at this time is 6,000 yuan.

Note: The available limit will decrease with each consumption and will be restored with each repayment.

4. What is the billing date?

The card-issuing bank regularly summarizes and settles various transactions and expenses incurred in the cardholder's credit card account every month, calculates interest, and calculates the date on which the cardholder should repay the amount in the current period.

5. What is the due date for repayment?

The last date specified by the card issuing bank when the cardholder should repay the entire repayment or the minimum repayment amount.

6. What is the interest-free repayment period?

For consumer transactions, the period from the bank accounting date to the due repayment date is the interest-free repayment period. For example: Ms. Zhang made a purchase on August 19, and the settlement was on the bill on September 18. If she paid in full on the last payment day of October 8, she would enjoy the longest 50-day interest-free period (August 19-October 8 day). For example, if she makes a purchase on August 18, which is the billing day, and repays the amount in full on the final payment date of September 7, she will enjoy the shortest 20-day interest-free period.

7. What is the minimum repayment amount?

The minimum amount that the cardholder should repay in the current period stipulated by the card issuing bank is generally a certain proportion of the accumulated unpaid consumption principal, including all fees, interest, amounts owed in excess of the credit limit, and advance loans. The sum of the cash principal and the unpaid minimum payment of the previous period’s bill.

The minimum repayment amount is calculated as follows:

10% of the consumption amount within the credit limit, 100% of the cash advance transaction amount, 100% of the unpaid portion of the previous minimum repayment amount, consumption exceeding the credit limit 100 of the payment, 100 of the fees and interest = minimum payment amount

8. What is a late payment fee?

If your actual repayment amount is lower than the minimum repayment amount on the payment due date, you will be charged a late fee for the unpaid portion of the minimum repayment amount. The proportion of late payment fees is uniformly stipulated by the People's Bank of China, which is 5% of the unpaid portion of the minimum repayment amount.

9. What is an over-limit fee?

According to the relevant regulations of the People's Bank of China, if you use the card beyond the credit limit, the bank will charge an over-limit fee for the portion exceeding the credit limit.

10.What is the grace period?

The so-called grace period used to generally refer to an interest-free period from the date when the store bill was credited to the cardholder's account until the bank received the cardholder's account. Different card issuing banks have different regulations.

The longer the grace period, the better it is for consumers. When considering the grace period, you should also be aware of the issuing bank's rules regarding start dates and settlement dates.

11.What is revolving credit? How to calculate recurring interest?

A revolving credit is a small, unsecured loan with daily interest. You can decide the repayment amount according to your own financial situation before the monthly payment due date. When the amount you repay is equal to or higher than the minimum payment on the current bill, but less than the amount due in the current period, the remaining deferred payment amount is the revolving credit balance.

Recurring interest calculation rule: If each period of consumption is not repaid in full before the final repayment date, interest will be calculated from the date the consumption is recorded. Cash withdrawals using a credit line are subject to recurring interest from that day. Please repay according to the amount on your monthly statement. If you repay at the minimum repayment amount, you can make your funds flow more freely while paying recurring interest without affecting your credit record.

Recurring interest calculation method: The amount of each consumption in the previous period's statement is the interest-bearing principal, and the number of interest-bearing days is from the date when the account is recorded to the date when the account is paid off. The daily interest rate is 0.05%. Interest on the revolving credit will be shown on your next bill.

Example:

Mr. Li’s bill date is the 18th of each month, and the repayment due date is the 7th of each month; The bank printed the copy for Mr. Li on April 18th. The bill for this period includes all his transaction accounts from March 19 to April 18; Mr. Li only made one purchase in this billing cycle - April 15, the consumption amount was RMB 1,000; Mr. Li's current bill The "repayable amount for the current period" of the bill is RMB 1,000, and the "minimum repayment amount" is RMB 100;

Based on different repayment situations, Mr. Li's recurring interest is:

If Mr. Li repays 1,000 yuan in full before May 7, the recurring interest = 0 yuan will be included in the statement on May 7.

If Mr. Li only repaid the minimum repayment amount of 100 yuan before May 7, the recurring interest on the statement on May 18 = 16.40 yuan. The specific calculation is as follows: 1,000 yuan × 0. 05×22 days (April 15-May 7) (1,000 yuan-100 yuan)×0. 05×12 days (May 7-May 18) recurring interest = 16.40 yuan.

12. What is a special merchant? Special merchants?

Special merchants refer to merchants that have signed a card acceptance business agreement with the bank and agree to use bank cards for business settlement.

Special merchants are merchants among the special merchants that provide cardholders with special preferential services and can provide cardholders with real price discounts.

13. What is a point of sale terminal-POS (PointofSale)?

Sales terminal - POS is a multi-functional terminal. When installed in a credit card merchant and acceptance outlet and connected to a computer network, automatic transfer of electronic funds can be realized. It has the functions of supporting consumption, reservation Functions such as authorization, balance inquiry and transfer are safe, fast and reliable to use. POS mainly has the following two types:

(1) Consumption POS, which has functions such as consumption, pre-authorization, and query of stop payment lists. , mainly used by specially appointed merchants to accept bank card consumption.

(2) Transfer POS, which has functions such as financial transfer and card-to-card transfer, and is mainly used in unit financial departments.

14. What is creditworthiness and creditworthiness assessment?

The creditworthiness referred to refers to the degree of compliance and trustworthiness of the card issuer reflected in social reputation, economic status, performance of commodity transactions, etc. The purpose of card issuers' credit assessment of card issuers is to gain an in-depth understanding of cardholders by examining the cardholders' social behavior, economic strength, and compliance with contracts, so as to provide a basis for determining whether to determine the customer relationship and make a decision. Therefore, credit evaluation is a very important task for card issuers. A person's social credit is directly related to his application and use of credit cards. Western developed countries have now formed a good concept of credit, and people cherish credit as they cherish life.

15. Is the higher the limit, the better?

The credit limit of a credit card is related to your credit status. A real credit card has the function of credit consumption loan. If you have a stable job, a high degree of education, or a certain position, the card issuer may give you a higher credit limit.

If you want to apply for or increase your credit limit, you need to provide relevant proof of your personal assets, such as: real estate certificate, stock holding certificate, bank deposit certificate or deposit deposit, etc., which can help you increase your credit limit. A certain credit limit.

However, it is worth noting that having a credit limit that is too high but cannot be used may actually cause trouble for you. Once the card or card number is stolen, it will leave considerable opportunities for criminals to use it fraudulently. space, so I remind you to "just use enough credit!" Similarly, if you feel that the current credit limit is too high, please contact the bank to proactively lower your credit limit; after lowering the limit, if you have a temporary large amount of use, you can still You can contact your bank to apply for a temporary increase in your credit limit before making large purchases or going abroad.