What do you think of personal credit liabilities? Meeting this standard is considered high!

Since the country began to examine personal credit reports, the integrity of residents has changed a lot. More and more people have begun to pay attention to credit reports. After all, whether you are applying for a mortgage or a credit card, you need to use a credit report. . However, people are often rejected because their debt is too high, so how much is too high? How to calculate it?

1. Loan liability ratio

Bank financial institutions are very strict when users apply for credit card loans, housing loans, and car loans. The most important thing is to review the debt ratio.

Calculation formula: Personal debt ratio = total debt/total income 100

Generally speaking, the debt ratio should not exceed 70. This is a watershed. When encountering strict risk control, 100 will be rejected, you can calculate it yourself first.

2. Credit card debt ratio

Nowadays, credit cards are very common. Most people have several different credit cards. Some people may have a limit of hundreds of thousands, and their monthly The consumption amount is not low either. It is precisely because of this that banks have very strict control over credit card debt ratios. If a credit card debt ratio exceeds 70, the bank will regard them as a "high-risk group."

Calculation formula: credit card debt ratio = credit card used limit/available limit 100

For example, suppose your credit card limit is 30,000 yuan, and you have swiped 10,000 yuan, then The debt ratio exceeds 70, which, combined with your income, may cause financial stress, making it difficult to get approved for new credit.

3. Mortgage liabilities

Some banks' mortgages are included in liabilities, while others do not. After all, there is collateral, which is different from the above two categories.

An example of how to calculate a personal debt ratio

If a personal debt ratio is too high, it will affect your application for credit cards and loans. Generally speaking, it is best not to exceed 50.

The calculation formula of personal debt ratio is: personal debt ratio = total liabilities/total income 100, where liabilities include credit card bills, installment payments, loans and repayments, etc.

For example: Suppose Xiaoxi’s monthly credit card bill is 2,000 yuan, and she still has a monthly mortgage loan of 3,000 yuan to repay. Her monthly salary income is 8,000 yuan. Then, Xiaoxi’s personal debt ratio It is: (20003000)/8000100=62.5.

As far as Xiao Xi is concerned, a high personal debt ratio is not conducive to applying for credit cards and loans. However, if a wealthy person like Jack Ma has strong financial strength, a personal debt ratio of more than 70 will not affect his credit. Behavior.

For more information on how to calculate personal debt ratio, for example, go to: View more content

How to calculate credit card debt ratio? What's the impact?

Whether you are applying for a credit card, a loan, or raising a credit card limit, banks may refer to the cardholder's credit card debt ratio. And many people don’t know how to calculate this debt ratio and what impact it will have? Here, I will briefly introduce it to you.

How to calculate credit card debt ratio?

The credit card debt ratio is mainly related to the credit card fixed limit and the used limit. The formula is expressed as, credit card debt ratio = credit card used limit / credit card fixed limit.

The specific calculation unit is monthly. The bank refers to the monthly debt ratio. For example, if the credit card limit is 10,000 yuan, if you spend 500 yuan on books and pay 500 yuan on utility bills, the used limit this month is 1,000. Yuan, monthly debt ratio=1000/10000=10.

It should be reminded that when banks approve credit cards, loans, or credit card limit increases, they refer to the debt ratio of credit cards in the past six months. If the debt ratio exceeds 50, it means high debt. Even if the cardholder has a good credit record in the past, the bank will still consider him to be at risk of overdue in the future and add him to the gray list. It is basically hopeless to apply for a card, get a loan, or raise a limit.

What should I do if my credit card debt ratio is high?

If you don’t want your credit card or loan approval or limit increase to be affected by a high credit card debt ratio, it’s best to start reducing your credit card debt ratio 6 months ago.

1. If you have a large amount of consumption and are unable to repay, it is best to spread the total debt in installments to each month, then the monthly debt amount will be reduced.

2. If you have a credit card that is not commonly used, it is recommended to cancel it after paying off the balance. As for whether to cancel the card or cancel the account, the decision mainly depends on how many credit cards are under the name of the same bank.

3. Work hard to make money to pay off your credit card debt. If your credit card debt is reduced, your debt ratio will naturally be reduced.

Generally, credit cards will not be approved if their debt exceeds 70%

Generally speaking, users cannot apply for a credit card if their credit card debt exceeds 70%. The calculation formula of personal debt ratio is: total liabilities/total income 100. Assume that a borrower holds a credit card with a credit limit of 40,000 yuan. When applying for a mortgage loan, there are 20,000 yuan of credit card purchases that have not been repaid. Then the borrower The credit card debt is: 20000/40000100=50.

Different banks have different regulations on borrowers' debt ratios. However, if the user's debt ratio is too high, it is still recommended that the user repay part of the debt before applying for a credit card to reduce their debt. Rate.

Generally speaking, users cannot apply for a credit card if their credit card debt exceeds 70%. The calculation formula of personal debt ratio is: total liabilities/total income 100. Assume that a borrower holds a credit card with a credit limit of 40,000 yuan. When applying for a mortgage loan, there are 20,000 yuan of credit card purchases that have not been repaid. Then the borrower The credit card debt is: 20000/40000100=50.

How to calculate the total balance outstanding on Minsheng Credit Card?

1. Credit Cards

Credit cards and loans are no strangers to most of our friends. Banks, institutions, and the Internet have launched a variety of products, and many young people are greedy for them. Fresh and easy to use, more people really need liquidity. Many people already know the importance of credit reports, but do you know how banks calculate liabilities?

Credit card debt ratio = credit card used limit/available limit 100

For example: the credit card limit is 50,000, 40,000 has been used currently, the credit card debt ratio is 80, for the bank He said that if the credit card debt ratio exceeds 70, he is already a risky customer. It is best not to exceed 50 of the credit card limit for daily consumption. Can I return it immediately? Of course, it is possible, but it is not very meaningful for customers who are about to get a loan. The credit report is not updated in real time. The update may take about a month.

Recommendation: If you have a loan plan in the near future, you need to be cautious when using credit cards. It's best to prepare for the first month or two of the loan and keep your credit card debt levels low.

2. Credit Card Installment

If your credit card debt is too high, you cannot pay it off for the time being. Then you can choose credit card installment.

For example: If you have just applied for an installment of 100,000 yuan in 24 installments, then the 100,000 yuan will be spread evenly over 24 months after the installment. You only need to repay the principal and handling fees, and the credit report will It doesn’t show a debt of 100,000. This is equivalent to hiding this liability.

Suggestion: The longer the credit card installment period, the lower the current bill amount displayed. However, many banks are unable to make early repayments after installments. After repayment, the handling fees stipulated in the original contract will still be charged and regarded as overpayments. Therefore, the term selection should be based on actual needs.

3. Credit loan

Banking institutions attach great importance to repayment ability when judging whether to agree to the loan. The judgment of repayment ability is mainly based on income level and debt ratio.

Personal debt ratio = total debt/total income 100

Generally speaking, it is best not to exceed 60~70. If it exceeds most banks will refuse the loan.

For example: Mr. Wang’s car loan repayment is 3,000 yuan, his credit card bill repayment is 2,000 yuan, and his monthly income is 10,000 yuan. His personal debt ratio is 50, and he still has some room to apply for a credit loan. However, if you have a large financial need, it is best to seek professional planning to avoid exceeding the debt ratio after one or two applications.

4. Mortgage loan

If it is a mortgage loan, many banks will not include it as a liability because the house is considered a fixed asset. A few banks are included in the calculation because they actually need to repay. Banks that count calculate based on monthly repayments rather than total loan amount.

The car loan must be included in the calculation. The car is considered a consumable and is calculated based on the monthly repayment amount.

Suggestion: Take into account the amount that needs to be repaid, and calculate the debt ratio yourself first, so that you have an idea. Regarding income, in addition to wages, any other turnover transferred at a fixed time can be calculated as income if there is a reasonable explanation.

5. Online Loans

The liability calculation method of online loans is the same as that of credit loans. The amounts of online loans are not large. In terms of liabilities, they generally have little impact on individuals. However, most online loans have higher interest rates and smaller amounts. If you apply for an online loan worth thousands or tens of thousands, and then go to a bank to apply for a loan of hundreds of thousands or millions, the bank will think there is something wrong with the applicant or that you are extremely short of money. In addition, it is relatively easy to apply for an online loan. You can get the credit limit just by clicking on your mobile phone. After being checked for credit by online lending institutions many times, the bank will also carefully consider the feasibility of the loan.

That’s it for the introduction of how to calculate credit card debt.