What happened to the credit card limit reduction?

The first point: abnormal card usage, abnormal use of the card by the cardholder or regular credit card swiping behavior will directly lead to the credit card being risk controlled, usually It refers to maxing out your credit card at a specific time every month. This kind of card use will be easily regarded as cashing out, so it is reasonable to have your credit limit reduced.

Second point: If you don’t use the card for a long time, some cardholders may have many credit cards in their name, but some of them have basically not been used after application and have been idle for a long time. This type of user will make the bank feel that they are not highly dependent on credit cards and do not need credit cards for consumption, so they will also reduce their credit limit.

The third point: Although credit card overdue is a very common thing, it is also a serious violation of card use, and it will also have a serious impact on personal credit. After a cardholder is overdue, the bank will consider his repayment ability to be relatively weak, and will naturally reduce the card's limit in order to avoid capital risks.

The fourth point: The time interval between card swiping is too short. When the cardholder swipes the card frequently in a short period of time and the amount is large, he will be suspected of cashing out news. If the same credit card is swiped too many times on the same day, the time for each swipe shall not be less than 15 minutes. If the card swiping machine is in a different city, the interval shall not be less than 5 hours.

Please click to enter the picture description (maximum 18 words)

Why is the credit card limit reduced

1. There is arbitrage behavior. If a user cashes out when using a credit card. Once discovered by the bank, the limit will be reduced. If the situation is more serious, you may be held criminally responsible.

2. Too many cash withdrawals. Withdrawing cash is an inherent function of a credit card. If a user withdraws cash too many times, banks will often think that the user is doing this frequently. Therefore, in order to prevent risks from occurring, banks may also reduce the limit.

3. Abnormal transactions. This situation can be divided into many types, such as credit card fraud or maxing out every month. This may cause the bank credit card to be reduced.

4. Overdue repayment. Credit cards are bank lending products. If a user makes overdue repayments, not only may his personal credit be damaged, but his credit card may also be reduced or frozen. Therefore, users must make repayments on time when using credit cards.

5. Not used frequently. After the user applies for a credit card, if he does not use it frequently or uses it too few times. Then, the credit card limit will be reduced.

Why credit cards will be reduced

1. When the cardholder uses the credit card, if the card swiping habit suddenly changes, or the credit card is suddenly maxed out, the bank will think that the cardholder has made a transaction If it is abnormal or suspected of cashing out, the bank will send a warning text message to remind you that credit card transactions are risky and please use the card properly.

2. If the credit card used by the cardholder has always been normal, but suddenly cannot swipe the card for consumption, then there must be an abnormal transaction on the credit card, or it may be that the credit card has been overdue, etc., and has been charged by the bank. Being on the blacklist without knowing it is also a sign of a credit card reduction.

3. If the cardholder has always used the card in a standardized manner, it will be very easy to apply for installment, because banks are eager for high-quality customers to apply for installment repayment and can earn handling fees. Once the application for installment is rejected, it means that the cardholder may become the bank's risk control target. Once entering the bank's black room, the credit limit will be reduced as soon as possible.

The dangers of credit card overdraft:

1. Producing a bad credit record;

2. Interest: calculated at 50,000 per day;

3. Late payment fee: generally calculated as 5% of the unpaid portion of the minimum repayment amount (depending on the regulations of each bank);

4. Malicious credit card overdrafts may also face criminal penalties;

5. If you are blacklisted by the bank, you will no longer be able to have a credit relationship with the bank within 5 years from the date of paying off the debt.

Your credit worthiness will not be greatly affected if you repay one or two days late, but overdraft interest will be charged. That is, two days of overdraft interest will be charged based on one ten thousandth of the overdraft amount.

For the above content, please refer to Baidu Encyclopedia - Credit Card

What are the reasons for credit card derating?

There are actually many reasons why credit cards are derated, such as: 1. Cash out occurs. During use, if the bank's system discovers that the user has cashed out his 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 issuing bank's name, validity period, number, cardholder's 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 designated commercial service departments, and then the bank will settle the accounts 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., 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 entities.

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.

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.

This is the end of the introduction on why credit cards lose their limit and why credit cards lose their limit. Have you found the information you need?