How to calculate the credit card debt ratio

1. The debt ratio inquired by the bank is calculated as follows: based on all liabilities (including credit cards and loans)/(income base), and for credit card liabilities The debt ratio is generally calculated based on the used limit/available limit of the credit card. It should be noted that the credit card debt ratio is real-time and will be checked by the bank during approval. If it is high, it will affect the approval and increase the limit.

2. The asset-liability ratio is the total liabilities in the balance sheet divided by the total assets. It is a ratio value that reflects the company's long-term solvency. The greater the asset-liability ratio, the worse the long-term solvency, and vice versa, the better.

Extended information

Characteristics of credit card

1. Pre-deposit of cash is not encouraged. Spend first and repay later. Enjoy interest-free repayment period and can repay in installments independently. (There is a minimum repayment amount), and join international credit card organizations such as VISA, MasterCard, JCB, etc. for global use.

2. It is one of the fastest growing financial services today and is an electronic currency that can replace traditional cash circulation within a certain range.

3. It has both payment and credit functions. Cardholders can use it to purchase goods or enjoy services, and can also obtain certain loans from card issuers by using their credit cards.

4. It is a high-tech product that integrates financial services and computer technology.

Reference material Baidu Encyclopedia - Credit card

Reference material Phoenix.com - 3 ways to easily reduce credit card debt!

How to reduce the debt ratio with credit cards: use these three tricks

The monthly use of credit cards will be recorded on the credit report. If you apply for a loan, the bank can use the credit card debt The ratio determines whether the applicant has the ability to repay the loan. If the debt ratio is too high, the loan may be rejected. For this reason, if you want to successfully get a loan, it is best to find ways to reduce the credit card debt ratio. Here are three commonly used methods.

What are some ways to reduce debt ratio with credit cards?

1. Bill repayment

The debt ratio of credit cards changes in real time. It is generally based on the credit card repayment amount reported to the central bank every month, so the most direct way is to If you pay off all of this month's consumption before the credit card bill comes out, then you don't have to repay it this month, and your debt ratio will naturally be lower. You can then use your card to spend after the bill comes out.

For example: If the cardholder’s billing date is the 10th, the credit card limit has been used for 15,000 yuan this month, the total limit is only 20,000 yuan, and the debt ratio has reached 75. If you apply for a loan in this case, 90 will Rejected. If the cardholder pays off the balance on the 10th, there will be no need to repay this month, the debt ratio will be 0, and the impact on the loan will be small.

2. Cancel unused credit cards

If you have multiple credit cards under your name, the used limit of each card will lead to high credit card debt, and all credit card limits will cause the total credit limit to be exceeded. High will also affect loan approval. To this end, you can start from the root cause and cancel the unused credit card debt directly after paying off the balance. Here you need to decide whether to cancel the card or close the account.

3. Increase personal income

The credit card debt ratio is directly proportional to personal income. The higher the income, the debt ratio will also decrease. For this purpose, cardholders can do something in their free time after completing their daily work.

What does it mean that CITIC Credit Card does not currently support updating real-time arrears?

CITIC Credit Card does not currently support updating real-time arrears, which means that the card cannot be updated in real time with the amount of arrears. According to relevant information query, the update of real-time arrears is not supported. This means that during normal use of the card, when the card has arrears, the amount of arrears on the card will not increase as the amount of arrears increases. , will always be the initial value.

What does credit card debt mean?

Question 1: Why is a credit card a liability? Because a credit card has a credit limit given to you by the bank after review, which means that you can overdraft within the credit card limit. Consumption is equivalent to debt.

Of course, there is a contingent liability before the overdraft is overdrafted, but in fact, if the credit card is not consumed, there will be annual fees. Therefore, it can be considered that the credit card will definitely have overdraft and arrears, so it is called a liability.

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Question 2: What does credit card debt mean? There is an unpaid debt on a credit card

Question 3: What is credit card debt? Credit cards are mainly first Repayment after consumption, credit card overdraft is considered a debt and needs to be repaid on the repayment date.

The expiration date for recorded credit card transactions in each bill is called the statement date. The due date for repayment is generally around the 18th day after the bill date (as shown on the bill). The repayment grace period is 3 calendar days after the due payment date.

The billing dates of different cardholders may be different. For example, if the billing date is the 25th of each month, then each bill will record all transactions entered from the 26th of the previous month to the 25th of this month. The corresponding final repayment date is the 13th of the following month. Consumption on the 25th is generally not recorded until the 26th, and will be included in the next period's bill.

Question 4: What does it mean that credit card consumption becomes a liability? Credit cards are overdraft cards. You consume first and then repay. There is no problem that the bill after consumption becomes a liability.

Question 5: How to calculate credit card debt/(income base)

For example: a credit card of 10,000 yuan is paid the next day, and the third day Oh my gosh, all the money in the card is spent. Then within the 30 days of each month, there are only 3 days when the card has 10,000 yuan, and the remaining 27 days have 0 yuan. The daily average is 1,000 yuan, or 10. Debt ratio is 90. Many banks focus on the six-month average debt ratio.

Question 6: What does the total credit card debt mean? "My Debt" generally counts your credit card debt. The debt part of the data is for reference only. Because credit cards involve time settlement issues, the data is not updated in a timely manner. , please select "Account Management" - "Account Inquiry" in the first line above and check the "Available Limit" on the right. Please refer to the "Available Limit" data found.

Question 7: Credit Card. Debt will be considered a "credit card crime" by the bank, and depending on the amount of your overdraft, you will be sentenced to at least 7 years and a fine of 50,000.

Question 8: What does China Merchants Bank's total credit card debt mean? "My assets" in the professional version include "current", "term", "financial management account", "certificate treasury bonds" and "credit card overpayment", etc., while "foreign exchange trading account balance", "entrusted financial management" , "Savings/Accounting Treasury Bonds", "Physical Gold Accounts", "Stocks, Third-Party Custody Funds", etc. are not included in the calculation. "My Assets" are for reference only.

"My Debt" generally counts your credit card debt. The data in the debt part is for reference only. Because credit cards involve time settlement, the data is not updated in time. Please select "Account Management" in the first line above. "--"Account Inquiry", check the "Available Limit" on the right, please refer to the "Available Limit" data found.

Question 9: How to calculate credit card debt? 10 points if it is a China Merchants Bank credit card , please check the bill and see what is shown on the bill.

1. The interest-free period means that cardholders can enjoy interest-free treatment if they repay the entire amount due before the due payment date (inclusive). The period of consumption transactions from the bank recording date to the due payment date (the interest-free repayment period ranges from 20 to 50 days) 2. Pay the full amount on time before the final payment date, and the credit card consumption is You can enjoy the interest-free period and no fees are charged. 3. The minimum repayment amount refers to the minimum amount that needs to be repaid every month. It is shown on the monthly bill. There is no need to apply for the minimum repayment amount on time, which will not affect your personal credit. However, you cannot enjoy the interest-free period. Interest will be accrued on all consumption in the current period, with a daily interest rate of 0.5%.

Question 10: How to calculate the credit card debt ratio of 5 points for all liabilities (including credit cards and loans). )/(Income base)

For example: a credit card with a limit of 10,000 yuan is credited to the account on the second day after repayment, and all is consumed on the third day.

Then every day. Within the 30 days of the month, there are only 3 days when the card has 10,000 yuan, and the remaining 27 days have an average daily balance of 1,000 yuan, which is 90.

Many banks focus on the six-month average debt ratio.

This concludes the introduction to real-time credit card debt and total credit card debt. Have you found the information you need?