Credit card limits can be divided into temporary limits and fixed limits. The fixed limit is the limit that has no use period, while the temporary limit has a time limit and needs to be repaid in full when it expires, and the limit will disappear. If the cardholder's fixed limit is not enough, the temporary limit can be used as an emergency fund. So when will the bank grant a temporary limit to a credit card? Why is it not recommended to use temporary quota? Today I will introduce it to you in detail!

The situations in which banks grant temporary limits to credit cards usually include the following:

1. Major consumer demand: When the cardholder needs to make a large amount of consumption, which exceeds the original limit. When certain credit card limit limits apply, you can apply to the bank to temporarily increase the limit.

2. Sudden emergencies: For example, in medical emergencies or unexpected events during travel, when more financial support is needed quickly, banks may consider providing a temporary limit for credit cards.

3. Special promotions: Some merchants and partners may cooperate with banks to launch limited products or discounts within a specific period of time. In order to attract users to participate in purchases and stimulate consumption growth, banks may grant temporary credit card limits.

Although the temporary quota is very useful, many people still do not recommend that you use the temporary quota. This is because:

1. The temporary quota is only a temporary authorization. Its purpose is to meet special needs or promote consumption. So it doesn't mean you actually have more disposable income. When you use the temporary credit limit to make purchases or pay for other expenses, be sure to carefully evaluate the repayment pressure you can bear.

2. There may be difficulties and risks in repaying debts in the future. Credit card companies often treat temporary limits as overdrafts and require higher interest rates and short-term repayment in full. If you are unable to repay the entire amount on time, you will face default fees such as penalty interest and late payment fees, which may affect your personal credit rating. Therefore, when using a temporary credit limit, you must carefully consider whether you have sufficient repayment ability.

3. A temporary credit card limit may also cause a "broken window effect" for people, that is, when they have a higher disposable amount, it is easier to overspend or buy unnecessary items. This can lead to unnecessary financial stress and accumulation of debt, and can negatively impact personal financial health.