Recently, China Construction Bank reduced the credit card limits for LeTV employees. This incident caused an uproar for a while. How is the credit card limit calculated? Why do commercial banks reduce credit card limits for LeTV employees? What happened to all this?

Recently, a piece of news has made headlines in all financial media. This is that China Construction Bank, one of the five major banks, has reduced the credit card limit of LeTV employees to 1 yuan, which caused an uproar for a while. Brother Han's WeChat We also received a lot of questions from friends backstage. Everyone was asking why the bank would adjust the credit card limits of LeTV employees. Brother Han, as an employee in the payment industry, was also confused for a while.

Brother Han carefully studied the information from major online media. The process is as follows:

On July 25, an authenticated Weibo user named Bai Yunfei posted on Weibo that , I received a text message from a CCB credit card last Saturday and was told that the limit of my CCB credit card had been adjusted to 1 yuan. When I asked customer service, I was asked: "Do you work for LeTV?" Coincidentally, some LeTV Former employees of .com received information about the limit adjustment of CCB’s credit cards. These former colleagues whose limits were adjusted by CCB applied for CCB credit cards when they were working at LeTV, and they have all resigned from LeTV.

Since November last year, LeTV companies have been in a serious capital chain crisis. Since the beginning of this year, LeTV companies have experienced delays in paying employee social security contributions and paying wages. On the morning of July 26, the relevant person in charge of the China Construction Bank Credit Card Center responded that based on the changes in LeTV’s operating conditions and possible impacts, and in accordance with the credit card regulations and other relevant regulations, credit screening and temporary credit limits have been initiated for some relevant customers. control measures. It takes a certain amount of time to accurately verify and confirm a customer's credit status.

After reading the whole incident, Brother Han finally figured out what was going on. Today let’s talk about credit cards and credit card limits.

1. What exactly is a credit card?

I believe that anyone who has worked is familiar with credit cards. According to data from the "Overall Operation of the Payment System in the First Quarter of 2017" released by the People's Bank of China, as of the first quarter of 2017, The number of credit cards issued nationwide has reached 490 million, and basically every three people have a credit card. Especially for urban white-collar workers, credit cards are an indispensable necessity in daily life. How many of Brother Han’s friends do the first thing when they get their salary every month to pay off their credit card bills, but what exactly is this credit card that we use every day? What's going on?

Credit Card, also called a credit card, is issued to the cardholder by a bank or credit card company based on the user's creditworthiness and financial resources. The cardholder does not need to pay cash when using the credit card to make purchases. Repayment on the Billing Date is the simplest non-cash transaction payment method issued by commercial banks and credit cards, and it is also a simple credit service method of commercial banks.

Of course, this matter is more complicated, Brother Han should keep it simple. All of us have borrowed money. Whenever we ask someone to lend money, in fact, the person who lends money to you lends money to you because he knows you or trusts you and thus has personal trust in you. The same goes for credit cards. The so-called credit is a loan product made by commercial banks. After reviewing your personal information and situation, the commercial bank will decide that you are a reliable person and can lend you money.

However, as we all know, borrowing money from the bank is a very troublesome thing. If we go to the bank to borrow money as small as ten or twenty thousand and have to endure the long queues, we may No one wants to do it anymore. However, commercial banks wanted to make money from these small transactions. At this time, they invented a special product called credit card. By reporting your information to the commercial bank, the bank will judge whether you are worth borrowing money. If If it's worth it, commercial banks will give you a certain limit. As long as it doesn't exceed this limit, you can borrow money from commercial banks. And your credit card consumption is a process of commercial banks lending you money.

It’s just that during this process, the bank has set up an interest-free period, that is, within a certain period of time, you do not need to pay interest when borrowing this money. In the final analysis, this is still a process of borrowing money. .

From this fundamental principle, if one day a commercial bank feels that you may not be able to repay the money, then the first thing they will do is to reduce your credit limit to avoid risks. From this perspective, CCB What we did this time was not a big problem.

2. What factors determine your credit limit?

Now that we’ve talked about credit cards, let’s talk about what’s going on with the credit card limit? We have made it very clear before. The so-called credit card is the process of the bank lending you money, but everyone is different. For example, if Zhang San is very rich, the bank may give him a credit card with a limit of 200,000, but Li Si is very poor. Maybe the bank will only give him a credit card with a limit of 10,000. This is the credit card limit. I believe many people are curious, how is the credit card limit calculated?

If you ask the bank how to calculate my credit card limit, the bank will have an official unified answer, which is: the credit limit of the credit card is based on the information you filled in and provided when you applied for the credit card. If the relevant supporting documents are comprehensively assessed and approved, the main card and supplementary card will enjoy the same limit.

I believe most of my friends are confused when they see this thing. Brother Han happens to work in the payment industry, so let me decipher it with you. How is the credit card limit determined?

Generally, commercial banks will determine your credit card limit based on the information you fill in, which is generally divided into the following categories:

First, what is your personal income? Under normal circumstances, the first factor that commercial banks care about you is how much money can you earn in a year? That is your income. The higher your income, the richer you are in the eyes of banks. The more commercial banks are willing to apply for a credit card for you, and the more willing they are to give you a high credit limit. Generally, if your annual income is less than three If your annual income exceeds 100,000 yuan, commercial banks will basically not be willing to grant you a credit card. If your annual income exceeds 100,000 yuan, commercial banks will be more willing to grant you a high-limit credit card.

Second, what is your age? I believe many people are also curious about the age factor, because according to national regulations, college students are generally not allowed to apply for credit cards, so we calculate it based on the standard age of college graduates, 22 years old. Commercial banks below 22 years old generally They are not willing to apply for a credit card. But is older age better? No, in fact, commercial banks believe that the purchasing power of middle-aged people is strongest when they are 41 to 50 years old, so the credit card limit for you in this age group is generally relatively high. If you are over 50 years old, commercial banks will Lower your limit. (Age is also related to education level. The higher your education level, the higher the corresponding credit limit.)

Third, how is your bank statement? What is bank statement? It is the transaction status of your bank card expenditures and income in a bank. Generally, the bank where the bank card you use the most is often willing to apply for a credit card for you, because you have clear bank flow and bank flow in their bank. The larger the amount, the more likely you are to get a high amount.

Fourth, what is your housing situation? A house can be said to be the largest asset for most people, especially in first-tier cities. If you rent a house, the bank will give you a relatively low credit limit, because they think you are relatively poor. If you own your own house, the bank will be willing to give you a higher credit limit at this time, because the house is very valuable.

Fifth, how is your work situation? If you don’t have a regular job, I’m sorry that commercial banks generally won’t give you a credit card. If you have a stable job, then depending on the nature of the business, if it is a small, micro or private enterprise, the bank will not be willing to give you a high-value credit card. In state-owned enterprises, government agencies, and public institutions, banks are willing to issue high-value credit cards because your job is stable enough. Generally speaking, the job indicates your cash inflow ability and stability. The best is civil servants, followed by public institutions, followed by large enterprises, foreign-funded companies, etc. However, there is a special case. If you are the legal representative of a company or a private company, the bank may carefully consider whether to apply for a credit card for you, and may refuse to apply for a card for you.

Of course, the above five conditions are the criteria for most judgments of credit limits. Of course, your bank deposits, credit history, whether you own a car, whether you have a landline, etc. will all affect your credit card. Quota.

Just like in the LeTV incident, commercial banks consider that your unit may not be able to pay wages, so should I lower your credit limit?

3. How can you increase the limit of your credit card?

For each of us, if a commercial bank is willing to give you a high enough credit limit, it means that your credit is relatively good, so many people hope to have a higher credit limit, so how can What about increasing your credit card limit? Generally, there are the following tips:

First, continue to use credit cards to consume. After you have a credit card, as long as you insist on swiping the card for a long time, the commercial bank will consider you a high-quality customer, and if you can repay the loan on time, the commercial bank will consider increasing your credit limit every once in a while.

The second is frequent installment consumption. After you swipe your card, if you pay it off all at once every time, the commercial bank will feel that it cannot make money on you and will not want to increase your limit. If you are eager to increase your limit, you may wish to consider using more The form of installment allows commercial banks to make money, so the bank will be willing to increase your loan limit. (Again, the installment fee is very high, so don’t do this if you don’t urgently want to increase the limit)

The third is to pay a large amount and apply for a temporary limit. In addition to the above two points, there is another trick, which is to frequently make large transactions and use temporary limit increases from commercial banks. After doing this many times, the bank will feel that your spending power is very strong and increase your limit. .

Of course, Brother Han once again emphasized that although credit cards are good, they should be used in moderation, because too high a limit will not only not be used, but also easily induce your desire to consume in advance, so just suit yourself.

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