Does long-term credit refer to too many credit cards? A brief introduction in this article

Many people are rejected when applying for bank loans or credit cards. This is probably due to multiple credit extensions, that is, more than three financial institutions are displayed in the loan information on the credit report. Some people are not clear about the identification standards of multi-party credit, and think that having too many credit cards means long-term credit. In fact, this is not necessarily true. Let’s learn more about it together.

Does long-term credit refer to too many credit cards?

We all know that when applying for a bank loan or credit card, we will check the credit report. In addition to checking whether the applicant is overdue, we also need to check which financial institutions they have applied for credit cards and loans, and Counting all institutions, if there are more than 3, it is a typical long credit grant.

So, long-term credit extension does not only refer to too many credit cards, but also needs to be considered in combination with the loans that have been processed and have high credit scores. If you only have credit cards in your name and no loan records, the focus is to examine the number of credit card credit institutions. It should be noted that the number of credit cards ≠ credit card credit institutions.

For example:

If the credit report shows that there are 5 credit cards in your name, 2 of them are from China Merchants Bank, 1 is from China Construction Bank, and 1 is from China Merchants Bank. Minsheng Bank, 1 picture is Industrial Bank. Then there are not 5 credit card granting institutions, but 4.

The reason for this statistics is that multiple credit cards from the same bank have the same limit, and the total available limit is based on the card with the highest limit. Therefore, although there are 5 credit cards, 2 of them The credit cards are consolidated into one credit institution, so only 4 banks have granted credit.

However, despite this, the total number of credit institutions exceeds 4, which can be regarded as a typical multi-credit grant.

How long does it take to eliminate long credit? Detailed analysis of the specific situation

It is very difficult for people with long credit extensions to apply for bank credit cards or loans. Only by reducing the number of credit extension institutions to three or less will the success rate be higher. So, what should we do about long-term credit extension? How long will it take to eliminate it? Let’s take a look below.

Multiple credit extensions include not only more than 3 credit card issuing banks, but also more than 3 lending institutions, and even the total number of credit card issuing banks and lending institutions exceeds 3. Therefore, if you want to eliminate multiple credit extensions, you have to think clearly. Start with a credit card or a loan.

1. If you want to reduce the number of credit card issuing banks to eliminate bullish credit, you need to cancel the credit card.

Credit card cancellation here not only refers to the cancellation of the card, but also the cancellation of the account. The method is very simple. After making sure that all the credit cards under the name of the bank to be canceled are not overdue and have no balance, you can call the service hotline of the card issuer. , after transferring to manual customer service, an application for account cancellation was made. After the account was successfully closed, the credit report information of all the credit cards of this bank could not be found.

However, it takes a long time to cancel a credit card account to eliminate long credit, because it takes 46 days from the date of application for cancellation to successfully cancel the account, which means it will take at least 2 months. , in order to eliminate long-term credit granting. And the cardholder must ensure that there is no debt or balance on the credit card during the period of account cancellation.

2. If you want to reduce the number of lending institutions to eliminate long credit extensions, you need to settle the loans.

First check your credit report and see which lending institutions are listed above. Within your own ability, first settle the loan with a small amount owed. Of course, the best way is to borrow money and pay off the debts with higher debts first, so as to reduce the number of long-term credit and reduce the total credit limit.

After paying off the loan, don’t forget to ask the lender to issue a loan settlement certificate. Generally, after the month is settled, the lending institution will report it to the central bank's credit system on T1, and the credit record will be updated by next month at the latest.

What is long-term credit card credit? Is long-term credit extension considered bad credit?

Many people think that the more credit cards you have, the better. However, they do not know that holding credit cards from multiple banks can easily lead to multiple credit extensions. In this case, it may be difficult to apply for bank loans or credit cards. Will be rejected unless you can eliminate the long credit.

So, how to eliminate the long credit card credit limit? Let’s find out together below.

In fact, it is very easy to eliminate long credit, but the prerequisite is to understand the reasons that lead to long credit.

Multiple credit extensions are caused by handling credit business with more than 2 or more banks/financial institutions, resulting in an accumulated credit card limit that is too high. Therefore, too many credit cards, credit cards and other loan products lead to long-term credit extensions. reason.

In real life, many people have a misunderstanding about bad credit. They believe that only overdue credit cards or overdue loans are bad credit. In fact, this is not the case. Many banks often regard long credit extension as a sign of bad credit. Let’s take a look at it together.

Is long-term credit extension considered bad credit?

A friend once wanted to apply for a mortgage. Before applying for the loan, he had credit cards from 7 banks with a total credit limit of tens of thousands. Although he was not overdue, he was still rejected by the bank. The bank's comment on his application was that he had long-term credit and had bad credit, so he asked him to eliminate the long-term credit and apply again.

In fact, there are many similar situations like this. Many people who have multiple credit extensions have mostly applied for credit cards or loans at two or more banking institutions, and the total credit amount is relatively high. They often Give banks a sense of crisis. After all, if a cardholder is unable to repay after overdrafting, large-scale overdue payments will easily occur, and the bank will be in trouble if it wants to recover the money.

So, what should we do about the bad credit caused by long-term credit extension?

There is only one solution, which is to eliminate long credit. It is necessary to know whether it is caused by too many credit cards, which leads to multiple credit extensions, or whether it is caused by too many loans.

However, most cases are caused by having credit cards from more than 3 banks. After all, credit card application is much easier than loan. In this case, the credit card must be canceled. It is recommended that you choose Close the account, not the card.

After all, canceling a card only means canceling a single credit card, but if the bank that opens the account has multiple credit cards, these are all limited to each other. Unless the credit card with the highest limit is canceled, it will reduce the credit limit. There is no impact. To cancel an account, you can directly cancel all the credit cards of a certain bank. After the credit card is transferred to a new account, there will no longer be a credit limit.

However, credit card cancellation is not done casually. First, you need to cancel credit cards that are not used at ordinary times, then you need to cancel small-deposit cards, and thirdly, you need to cancel credit cards that are difficult to increase the limit. I would like to remind everyone that it is best to keep credit cards from the four major state-owned banks, because these banks are the ones that handle most car loans and home loans.

If it is a loan, the loan needs to be paid off. After settling the loan, remember to ask the financial institution to issue a loan settlement certificate. Some banks will require it.

Do credit cards from four banks count as long-term credit? It can be solved like this

When applying for a bank loan, the credit institution under the applicant's name is very important. If there is a multi-party credit situation, the possibility of being rejected is relatively high. Multi-party credit includes credit card credit banks, but many applicants are not clear about the specific number. For example, some people want to know whether credit cards from four banks count as long-term credit? Let’s take a look below.

We all know that when banks review loan applications, they will consider the credit institution shown in the lending information in the credit record. If there are more than 3 credit-granting institutions for credit cards and loans combined, it will be considered as a long-term credit granting. Even though the credit record does not have any overdue records, it is likely to be judged as a long-term credit granting risk and the loan will be refused.

It can be seen that the credit cards of the four banks can be regarded as multi-credit. However, it is not possible to apply for a credit card without multi-credit. The comprehensive evaluation is mainly based on the total credit limit of the lender and the usage rate of the credit. As long as It’s not an over-granting of credit, there is still a chance.

1. Total credit limit:

Refers to the amount that a single bank will give after a comprehensive assessment based on the applicant’s age, education, credit, occupation, income, assets, and local economic level. The applicant is granted a credit card limit, and the sum of the four bank limits is the total credit limit of the credit card.

2. Total credit limit utilization rate:

Refers to the total credit limit of the four banks that have been overdrafted/the total credit limit of the four banks. For example, the total credit limit of the four banks is 100,000 Yuan, the overdraft consumption limit is 80,000 yuan, and the total quota utilization rate is 80.

In this case, it is obvious that the bulls have over-granted credit. In order for the loan to be successfully approved, the applicant needs to be financially strong and provide sufficient financial evidence. Otherwise, each applicant must first apply for the loan. After paying off the balance on each credit card and reducing the utilization rate of the total limit, apply for a loan.

What does long-term credit card credit mean? There will be certain risks

Many cardholders are rejected by banks when applying for credit cards or loans because they have multiple credit extensions. A considerable number of people are confused about this long-term credit extension and don’t know what it means. Let’s take a look below.

What does long-term credit extension mean?

We all know that with many loan platforms or credit cards, after a successful application, it will be recorded in the loan column on the credit report, and the repayment status and credit limit will be displayed. When you apply for a credit card from another bank or apply for a loan, the bank will see all the credit records in your name. If there are more than 2 lending institutions or more, then it is a multi-credit grant.

For example, if you apply for credit cards at 3 banks, and then apply for 2 other online loans, and then want to apply for a mortgage loan from the bank, the bank will see that you are going to 4 An institution has handled the loan business, which is a typical case of long-term credit granting.

There are certain risks in long-term credit granting.

Some cardholders think that long-term credit extension is not a big deal because they are not overdue anyway, but banks don’t think so.

You must know that long-term credit extension will cause the cardholder's accumulated credit limit to be too high. Once the cardholder is unable to repay after a large overdraft, bad debts will easily occur, and the bank funds may not be recovered. Therefore, due to risk considerations, banks will not easily approve cards or loans for applicants with multiple credit lines.

The above is the relevant introduction to "What does long credit card credit mean", I hope it will be helpful to everyone. All in all, there are certain risks in long-term credit card extension, so everyone should apply for credit cards and loans based on their actual situation, and do not blindly apply for credit services from multiple institutions to avoid exacerbating the risk of default.

That’s it for the introduction to credit card bulls.