Credit card, credit limit – what is it?
Almost every bank offers its clients credit cards on which the limit is set. The debtor can use the money and must return it in time.
The limit is usually renewable so that the client can withdraw funds from the card again. This is very convenient because you can use the money at the right time. No need to collect documents, no waste of time. However, if you have a credit card, a credit line can stimulate purchases that are not always necessary.
About the credit limit
What is the credit limit? This is the amount of money provided by the bank to the client for permanent use. With the takeover of the banking product already has funds, so the borrower can withdraw cash or pay for the purchase. Unnecessary charges must be avoided in time to recover the debt.
Almost every financial institution provides a grace period. The credit card, whose limit may first be small, is used by the client for 50-60 days without interest. Special conditions in all banks may vary. If you use the service competently, the client has the opportunity to withdraw funds at any time.
If funds are not paid in the prescribed period, the increase in interest. This service only has a credit card. The credit limit may increase with time, but this is decided by the bank’s decision.
When ordering the card, the client is provided with a limit, otherwise, the card is not released. But there are zero-balance cards. They are usually debit. For example, it is a Visa Platinum “Best Bank” product. The personnel of the institution should learn about the specification of use and maintenance.
This card is considered to be a debit loan provided immediately. No money for it. A specific amount is provided for a few days at the discretion of the bank and the client will be informed by SMS or call. The card then receives credit status.
The bank sets the limit depending on the customer’s ability to pay. It also takes into account wages. If a customer has been issued a credit card, the credit line may increase over time. This is influenced by improved solvency. It usually provides 50-100 thousand dollars.
If the customer is not solvent, the restriction. The calculation rules in each bank are different. As a general rule, payment should not exceed 25% of revenue. Remember to take into account all client costs. The size of the limit affects the content of ownership of real estate, cars.
Increase the limit
If a credit card exists, the credit limit may be increased. Each bank is calculated in its own way. For example, in “VTB-24” the client submits an application, receipts, proof of ownership. The review of the application takes no more than 3 days, after which it was decided.
“Best Bank” independently decides to increase the amount if the client constantly uses the service and returns the money without delinquency. The limit can, therefore, be increased by:
- provision of documents;
- continuous use of funds.
How to find your credit limit?
You can use the following options to determine the amount you provided:
- You should familiarize yourself with the contract that was issued when you contacted the bank;
- the amount is stated on an ATM check;
- the client can order a statement from the bank;
- A convenient online banking service is available.
These methods are available with each card, including the “Corn” card. Euroset provides the option to use a personal account. It is appropriate to make various payments and transfers.
Reduction of the amount
The amount can not only be increased but also reduced. This occurs when:
- There are outstanding debts;
- there is a risk of default.
This is done in the one-way regime specified in the contract. If necessary, the client can independently reduce this amount. For example, he is given 300,000 dollars, and the client does not withdraw such money and is afraid of losing the card.
It may then make a declaration requesting a reduction in the amount of funds to the amount requested. Providing a limit is a profitable service because if necessary, you do not have to look for where to borrow money. It is only necessary to repay the debt on time.