What should I do if my credit card limit is gone?

What to do if the credit card limit is zero

I got the credit card, but I don’t know whether to cry or laugh because the credit card limit is actually zero. So here comes the question, since there is no limit, why do we need to go through approval to apply for the card? Why still issue a card? What are the consequences of having a credit card limit of zero?

Credit cards have different limit ranges according to different levels such as regular card, gold card, and platinum card. The bank will ultimately decide whether to approve the card and the amount of the card after a series of review procedures based on the applicant's qualifications.

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1. Analysis of the reasons for zero credit card limit

1. Banks need to prevent and control risks

Most banks are new The minimum limit for issuing a credit card is between 2,000 yuan and 3,000 yuan. However, the bad debt rate of credit cards has increased in recent years, which has sounded the alarm. We have strengthened control over the approval of card limits, and adopted a low-limit card issuance system for some marginal customers. Reduce the occurrence of late repayments or even non-repayments. In order to prevent and control risks, banks will reduce the card limit as much as possible, or even directly reduce the card limit to zero.

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2. Seize the market, complete card issuance tasks, and control credit limits

In recent years, competition among banks has also been quite fierce. In order to retain potential users and quickly seize the market, banks will issue zero-limit credit cards to applicants with poor financial resources. The emergence of low-limit credit cards is due to the fact that under the pressure of credit tightening, banks wanted to complete the task of issuing cards, so they came up with this method: issuing low-limit credit cards not only completed the task of issuing cards, but also controlled the credit limit. Only by saving money for consumption can cardholders gradually increase their limit. On the one hand, this can increase the number of users, and on the other hand, it will not increase the bank's bad debt rate due to the rapid increase in the number of card issuances. From the bank's perspective, it can be said to kill two birds with one stone.

2. What to do with a zero-limit credit card

A zero-limit credit card is essentially a credit card, and you can fully enjoy the rights and interests of this credit card, such as merchant discounts, points discounts, etc. .

In order to increase the limit, cardholders can deposit money into the credit card for consumption, maintain a certain frequency and amount of credit card swiping, and after three to six months, the credit card limit will naturally increase. 3. Reminder

Even if it is a zero-limit credit card, there is still an annual fee. If the number of card purchases does not meet the required number of purchases in the first year after activation, the bank will charge an annual fee. Moreover, before obtaining a credit limit for this kind of credit card, the cardholder must first deposit money and then use the card to make purchases, slowly accumulating the credit limit. After you have an overdraft limit, you must remember to repay it or pay the annual fee in time, otherwise "stains" will appear on your personal credit report, and the gain outweighs the loss.