Generally speaking, if the card amount exceeds 10% of the credit limit granted by the card issuer, it can be considered that the card has been maxed out. For example, if your credit card has a credit limit of 50,000, and you swiped 55,000 in a repayment cycle, or swiped out this amount in a single pass, then it is "maximized".
Swiping the card is cool for a while, and always swiping the card is always cool? The premise of always being cool is to repay the payment on time. Once you only care about the coolness, the "hidden effect" of the credit card will be activated:
E.g. "over-limit fee"
Refers to when the accumulative credit limit used by the cardholder exceeds the actual approved credit limit of the card on the day of the billing date within a billing cycle, the cardholder shall pay a certain percentage of the excess fee for the excess.
The habitual "swiping card" may also trigger the risk control of the institution
If you habitually max out your credit card, the bank will screen and judge you. If you can repay on time, it’s okay. Once overdue, it may trigger the bank’s risk control and reduce the cardholder’s credit limit, which is a serious possibility. It will cause the card to be blocked.
How to make up for the maxed out card?
Repayment in time after the credit card is maxed out is a top priority and the best solution without consideration. Do not overdue, otherwise the above-mentioned "hidden effect" will be removed and the credit investigation will be appropriate.
2. Choose the minimum repayment option
Many people will choose the minimum repayment amount after maxing out the card, but it should be reminded that the minimum repayment amount is roughly 10% of the cardholder’s bill, plus an additional 0.05% interest. Therefore, choosing a shorter repayment time and maximizing the single repayment amount is the best solution.
3. Modify the repayment date
Most card issuers allow cardholders to change the exchange date. If you have a profit in a short period of time (less than one repayment cycle), you can choose this plan carefully if you can repay the card that has been maxed out. This can reduce the payment of interest and handling fees, and at the same time alleviate short-term funding constraints, and will not damage the credit investigation.
It should be noted that it is not possible to modify the repayment date at any time. You must apply for the change before the card billing date. At the same time, there is a limit on the number of times you can modify the repayment date. Please ask the card issuer before choosing this plan to avoid "The plan fell through."
4. Temporary quota
The fixed limit of the credit card has been maxed out, so I quickly moved the rescuer-the temporary limit.
Credit cards have a fixed limit and a temporary limit. Daily credit card consumption is calculated within the fixed limit, and the temporary limit needs to be applied separately through the customer service phone of the card issuer and other official forms.
Also need to be reminded: the temporary quota is time-effective and will automatically revert to the original fixed quota after expiration; more importantly, avoid exposing the card again. The temporary quota does not support bill installment, and the corresponding repayment is to be repaid in full in time.
5. Sincerely negotiate and apply for installment
If, once there is no repayment, don’t choose to leave, because you can’t get away...even if you don’t have the money to repay, don’t stop answering the bank call. Because, according to our country’s law, the bank’s two collections within three months can be classified as malicious overdrafts. The consequences are very serious. Breaking the law is not a joke.
Proactively contact the bank, inform the bank of the actual situation, express the willingness to repay, and apply for the instalment repayment of the statement. Although it incurs a handling fee, it is much stronger than affecting personal credit.
6. Suspension of interest rate
Article 70 of the "Measures for the Supervision and Administration of Credit Card Business of Commercial Banks" stipulates: Under special circumstances, if it is confirmed that the amount owed by a credit card exceeds the cardholder’s ability to repay, and the cardholder still has the willingness to repay, the issuing bank may contact the cardholder. Negotiate on an equal footing to reach a personalized installment repayment agreement. Up to 5 years and 60 periods.
During the period of suspension of interest, the balance of your arrears will not generate new circular compound interest, but the previously generated interest will not be eliminated, and repayment is still required. Once the agreement is successfully signed, the bank will no longer collect the cardholder, but if it fails to make regular monthly repayments in accordance with the repayment commitment, the personalized repayment agreement signed will become invalid and the bank will directly sue the cardholder.
It should be reminded that banks are not charitable organizations that will not easily open interest-bearing accounts, so they should be psychologically prepared for a high probability of failure before applying. As a last resort, it is recommended that you do not try to stop interest payments. Although you can repay in accordance with personalized installments in time, the institution will still consider you a dishonest customer and judge that you do not meet the current credit card limits and standards, which will affect your future credit life. Therefore, repaying bills in time and maintaining personal credit is the kingly way.
There may be other ways to temporarily get rid of the dilemma of maxed out card, but in any case, don't let yourself get into another predicament just because maxed out card.
Finally, Brother Li still advises you to spend money in a plan, and don’t wait until the card is maxed out before thinking of remedy.
Free collection of personal credit card POS machines with points National POS machine franchise agents