The credit card limit may be lowered for the following reasons:

First: swipe your card regularly, and the card is maxed out.

Credit cards are swiped on such a fixed day every month, and they will be maxed out every time they are swiped. This kind of credit card behavior will make the bank think that there is a suspicion of cashing out, thus reducing the amount.

Second: the credit card has a high amount, but it is not usually swiped.

If your credit card has a high limit, but you don't usually swipe your card, the bank will think that you don't need such a large limit, so the bank may withdraw this credit card limit.

Third: overdue repayment

Overdue repayment will affect personal credit information, and the bank will think that you don't have the repayment ability and reduce your credit card limit.

Credit card, also called debit card, is a credit certificate issued by a commercial bank or credit card company to eligible consumers. It is a card with name, expiration date, number and cardholder's name printed on the front, and a magnetic stripe and signature strip on the back. Consumers with credit cards can go to specialized commercial service departments for shopping or spending, and then the bank will settle accounts with merchants and cardholders, and cardholders can overdraw within the prescribed limits.

Reasons for lowering credit card limit

1. Reasons for the decrease of credit cards

1. Credit card overdue: It often happens that credit cards are overdue, and banks are most likely to reduce the quota. If you don't pay the bank back often, the bank won't dare to lend you so much. If the credit card is overdue for more than three periods, the bank will charge interest and late fees to the cardholder who has overdue repayment. When overdue occurs for many times or the overdue amount reaches a certain amount, the bank will think that the cardholder has malicious overdraft consumption behavior, and it is risky to continue to provide revolving credit, and will unilaterally stop using the credit card.

2. Illegal cashing of credit cards: the risk of illegal cashing or raising cards. Many cardholders will pay attention to cashing out their credit cards when the cash flow is insufficient. In fact, this is also of great concern to banks. The issuing bank will either reduce the credit limit of the cardholder's credit card or suspend the cardholder's credit card use according to the cardholder's specific situation.

3. Abnormal credit card swiping: the account is abnormal, which usually occurs in "cashing out". If you have a large number of credit card transactions in a certain period of time, and the types are particularly concentrated, it is easy for the bank to suspect that it is cashing out, or the bank thinks that the credit card is risky, swipes the credit card on the risky POS machine, or the system prompts that the credit card has been hacked.

4. Credit cards may be stolen: Credit cards are considered to be at risk of being stolen. For example, someone has been trading in China, and suddenly one day the bank finds that this person has made several transactions abroad, and the bank will take the initiative to call the customer to confirm whether it is my operation. In order to avoid risks, banks may take the initiative to reduce the credit card limit, or apply for reducing the credit card limit through cardholders to prevent the credit card from being stolen, or even stop the card for security reasons.

5. Less credit card: If your credit card has not been used for more than 5 months, it is easy to be downgraded by the bank. Credit cards that have not been used for a long time have serious security problems. For this kind of sleep card, lowering the quota is also beneficial. Once there is a stolen brush, the loss will not be so serious.

6. Long-term non-use after activation: If the credit card is not used for a long time, it is equivalent to a dormant card, and it may also be reduced. Because users apply for credit cards, even if there is no overdraft, the credit line will occupy capital and reduce the bank's capital adequacy ratio. It is hoped that cardholders will make up for this part of the cost and increase their income by using their cards and swiping cards to contribute handling fees. If the cardholder does not use the credit card for a long time, the bank will think that you have no need to use the card and will lower the limit for you. The credit card limit is lowered, and the bank aims to reduce the capital occupation.

Second, what should I do if my credit card is reduced?

If you want to restore the quota, you have to prescribe the right medicine and contact the credit card issuer to see if there are any mistakes and how to avoid such mistakes next time.

What is the reason for the decline in credit card limit?

In the process of using credit cards, various accidents often occur. The credit card was stolen, and the credit card limit could not be raised for several years. Even when it is used, the amount of the credit card decreases instead of increasing. So what is the reason for the decline in credit card limit?

1, the credit card limit is reduced. The first reason is probably that you don't use a credit card. You want a high credit card limit, not just a good credit record and timely repayment. If you don't use the credit card after you get it, or if you only use it a little, and the monthly usage doesn't exceed 10%, the bank will think that for those who don't use the card very much, this limit is completely enough, and you don't need to increase your limit, or even reduce it. Anyway, it is enough. Therefore, in addition to a good credit record, spending power is also a standard to judge the bank's quota.

2. Consumption ability is very important, and repayment ability is also very important. If your credit card is overdue for various reasons, don't think about it, which will definitely lead to a decrease in the limit. Why? Because the bank will not consider so many factors, only consider: if you are overdue, it means that you are unable to repay. Since you haven't paid it yet, lower the quota to the standard you can bear!

In addition, there is another behavior that will definitely reduce your quota, and that is cashing out. What I want to tell you here is that it is illegal to cash out credit cards. Many people may feel that their cash-out behavior is neglected, but banks are not stupid. After business hours, they also brush out a sum of money, or go to small supermarkets, but brush out tens of thousands of dollars at a time. This is abnormal consumption, and banks can also find it. This unreasonable consumption behavior is suspected of cashing in the eyes of banks. If you find it, you will.

The above is the introduction of the reasons for the decline of credit card limit, hoping to help netizens.

What's with the reduction of credit cards?

If the user's credit card has a reduced limit, it is mainly caused by the following aspects: 1. In the daily use of credit cards, many users hope to get more cash withdrawals. So I cashed in with a fake deal. This is absolutely not allowed by the bank, if this behavior is discovered by the bank. Then, there may be a risk of lowering the quota.

2. The frequency of use is low. Many users rarely use credit cards, or spend very little at a time. At this point, the bank feels that the user's capital demand is not so strong. So you can withdraw a part of the quota and put it on users in need. At the same time, it also reduces its own risks.

3. There is overdue behavior. Since it is a credit card, banks will pay more attention to users' credit. When users use credit cards, if they are overdue, the bank may also reduce the user's credit limit for risk control, thus avoiding the overdue behavior of a larger amount.

4. The credit card amount is abnormal. For example, in many convenience stores or hot pot restaurants, the amount of credit cards swiped by users every time is above 1000 or even above 1 10,000. This is easy to attract the attention of banks, because the credit card limit has exceeded the conventional limit at this time. Banks will doubt whether users have cashed out. Therefore, the credit limit of users is reduced.

5. Frequent cash withdrawals. In addition to the consumption function, credit cards can also withdraw cash. However, if users frequently use the cash withdrawal function, it is easy for banks to think that it happens frequently and may even be overdue in the future. In order to control the occurrence of risks, banks have reduced the number of users.

This is the end of the introduction about why the credit card has lowered its quota and why the credit card has lowered its quota so seriously. I wonder if you have found the information you need?