Rigid deduction means that when managing credit card credit, commercial banks sometimes ignore the fact that the applicant has received credit from other banks, causing the cardholder's credit limit to far exceed his repayment ability. According to regulatory regulations, when a commercial bank approves credit and adjusts the credit limit, it must deduct the total credit limit of the applicant's accumulated credit cards from other banks based on the total credit limit approved by the bank. If the maximum credit limit is greater than the limit after rigid deductions, there is room for an increase; otherwise, the limit cannot be increased.

To put it simply, the applicant is given a total credit limit first, and then checks the applicant's credit card limits in other banks. If there is already a credit limit, the bank must add the credit limit to the applicant based on the total credit limit. Credit is granted to users only after subtracting credit from other banks.

Why should rigid deductions be implemented?

When managing credit card credit, commercial banks will ignore the credit card limits that applicants have obtained from other banks. The total credit limit approved by the user is 400,000, but a credit limit of 300,000 has been granted by other banks. , a large loan was still approved to the customer based on the credit limit of RMB 400,000. If the customer's repayment ability exceeds the credit limit, then the customer will most likely be unable to repay the loan. Therefore, in order to further standardize the development of the banking industry, reduce the bad debt rate, and strictly control the inflow of credit funds into the stock and property markets, rigid deductions have been embedded in the banking system as hard conditions.