Many people don’t know that credit cards actually have dual limits. In addition to our commonly used permanent limit, there is also a hidden limit, which is usually only available to high-quality customers. Next, let’s briefly introduce dual credit card limits.

What does double credit card limit mean?

The double credit card limit is the sum of the hidden limit of the permanent limit. The latter is generally called a special installment limit by banks, which can be divided into consumption installment limit, cash installment limit and consumption installment limit. The installment limit is independent of the permanent limit of the credit card, and its use will not occupy the credit card limit.

Each bank has different names for this special installment amount, such as Guangfa Caizhijin, Bank of Communications Haoxiangdai, China Merchants Bank e-loan, Shanghai Pudong Development Bank, etc. In fact, it is essentially a loan issued by the bank to the cardholder in the form of a credit card overdraft, commonly known as a credit card loan, but it is reflected in the form of a credit card in terms of credit reporting.

Is it good to have dual credit card limits?

Many cardholders believe that hiding the limit can increase their consumption limit and cash limit without reducing the credit card limit, which is definitely very good. But if you are not in urgent need of large purchases or capital turnover, it is recommended not to use it.

After all, double credit card limits can easily lead to the total credit limit being too high. Bank loans may be rejected, and credit card limit increases may also be blocked. There used to be many cardholders whose permanent credit limit was not high, but they used China Merchants Bank e-loan, but their mortgage application was rejected because the total credit limit of the credit card was too high.