Why should we strictly check personal credit cards?

Why are credit card risk controls so strict? Those who have credit cards should pay attention

Bank risk control is becoming more and more strict. Almost every month, we hear news that cardholders have their cards blocked and their credit limit reduced, which makes many people use their cards more and more. Carefully. Many people want to know the reason why credit card risk control is so strict. Let’s give you a brief introduction.

Why are credit card risk controls so strict?

There are actually many reasons, and there are three common ones.

1. Too many people are overdue

Once a credit card is overdue, it will be included in the gray list of the bank and become a key monitoring target of the bank. As we all know, due to the impact of the epidemic, many people have temporarily lost their source of income and have no money to repay their credit cards. This has led to the emergence of a large number of overdue people, which has seriously affected the bank's post-loan data. For this reason, banks have tightened risk control and have stricter control over their repayment ability. Those who are not strong will take measures to block cards and reduce their quotas.

2. There are many people who use cards illegally

During the epidemic, many stores are not open regularly, but many people still use credit cards to cash out at POS machines, especially those who often use credit cards for large amounts. , if the single transaction amount exceeds 3,000 yuan, it is easy to be risk controlled by the bank. In addition, the amount of some card swipes does not match the merchant type, making it even easier to become the target of bank risk control.

3. The second-generation credit reporting system is online

The biggest thing in 2020 is the upgrading of the credit reporting system. The second-generation credit reporting system launched the query function on January 19, 2020. Many banks will conduct post-loan management through the new version of credit reporting to understand the credit and borrowing records of cardholders.

If our bank or other banks are found to have multiple overdue payments, the cardholder will also be added to the gray list. If it is not overdue, but a new credit card record or loan record is added, causing the personal debt ratio to exceed 50% of the income, the cardholder's insufficient repayment ability will be questioned, and risk control will also be carried out.

In short, there is always a reason why risk control is so strict. If you don’t want to be risk-controlled, it is best to use credit cards reasonably and standardly, reduce the debt ratio, and repay on time.

The credit card market is ushering in a "rectification". Many banks have made clear their bottom lines and will strictly investigate "cash-outs"

Credit cards are different from debit cards in that they have the function of advance consumption, and there are many A favorite among young people. Young people spend a lot of money, and some people like brand-name bags or shoes. It is normal for them to use credit cards to cash out to buy luxury goods. Many people even have overdue payments. In order to prevent problems with credit reporting, some people have thought of "using credit cards to support credit cards", but is this behavior really reliable?

The impact of credit cards on people

First of all, we must know that credit cards have advantages and disadvantages. People who make good use of credit cards are like a fish in water. Those who don’t make good use of credit cards are always being led by the nose. The wall makes up the west wall.

On the plus side, a credit card does not require a balance to be used like a debit card. It can be overdrafted in advance and has a maximum interest-free period of 56 days. For people who frequently use credit cards, merchants will give some small gifts of points, and their funds are safe. In addition, banks generally have designated merchants and shopping malls, and you will get discounts for spending in these places. If you maintain a good credit record, it will also be recorded in your files, proving that you are a trustworthy person. Finally, credit card bills will be mailed to the mailbox every month, which also makes spending more planned.

The downside is that credit cards can encourage people to blindly and over-consume. Some people usually spend money lavishly and like to consume in advance. There are many people who cannot pay back later and will be charged high interest fees. Moreover, credit cards are at risk of being stolen because many cards allow payment without a password.

The credit card market is ushering in a "rectification"

Credit cards are very popular among young people precisely because of their overdraft function. In order to satisfy the selfish desires of young people, many banks have also committed many violations. The phenomenon of helping young people apply for credit cards has been severely rectified by relevant departments.

According to the "China Quality Journey" report, the China Banking and Insurance Regulatory Commission held a meeting with the management of each lower-level branch in Beijing. The meeting emphasized that key supervision should be adopted on the spread of credit card business and no large-scale new additions should be allowed. , nor is it allowed to help people apply for credit cards in large quantities because of performance appraisal indicators, so as to control risks, strictly check the flow of loan funds, and adopt zero tolerance for illegal banks.

This idea has also been implemented into action. The Shanghai Banking and Insurance Regulatory Commission has publicized the credit card violations of six banks including Industrial and Commercial Bank of China, Industrial and Commercial Bank of China, China Merchants Bank, Shanghai Pudong Development Bank and Construction Bank. The six banks did not comply. Due to the limit rules that cardholders should enjoy, and the lack of careful investigation of the applicant's income, a total fine of RMB 1.9 million was imposed.

The Beijing Banking and Insurance Regulatory Commission issued opinions on credit card risk prevention and control, requiring all levels to strengthen prevention and standardize bank card issuance and account opening behaviors, and conduct relevant supervision on credit card authorization credit and transaction processes.

The managers of Yancheng Chengnan Branch were fined 350,000 yuan by the China Banking and Insurance Regulatory Commission. This was mainly because some bank managers violated regulations in handling credit card installment business for customers.

Many banks have made clear their bottom line

Given that the number of card users is becoming younger and younger, and the credit card non-performing rate of various banks is generally on the rise, many banks are accepting credit card business. The National Banking and Insurance Regulatory Commission imposed penalties on several banks for failing to comply with regulations. The central bank has also upgraded the personal credit reporting system, directly connecting credit cards with personal credit reporting. Many banks have also revealed their true intentions.

CITIC Bank and Industrial Bank issued announcements almost simultaneously that the minimum repayment amount will be cancelled, and the advance loan amount is the new "minimum repayment amount." This means that many people who use credit card overdrafts will no longer enjoy the benefit of minimum repayment. They must pay off their bills when the time comes, otherwise the pre-borrowed money will be deducted and will be considered is overdue.

The annual report of Bank of Communications shows that the credit card business has shrunk a lot in half a year, and the number of cards issued has decreased by 80,000 in half a year. However, the consumption enthusiasm of card users has not diminished, and it has easily exceeded one trillion. close. The non-performing overdraft of credit cards reached 2.49%, an increase of approximately 1% year-on-year. The non-performing rate of loans also reached 2.38%, an increase of 0.57 percentage points year-on-year. The Bank of Communications also stated that it will adjust the customer structure and review the qualifications of loan customers. It will have a more stringent layout and repayment behavior to balance and control the risks and business of the entire credit card. On the other hand, it will also improve the efficiency of collection to ensure the safety of funds.

The NPL ratio of Shanghai Pudong Development Bank is even higher, reaching 2.38%. The NPL ratio is growing too fast. Bank officials also said that if customers with average qualifications have relatively large consumption overdrafts, the bank will A friendly reminder will be used to indicate that the customer's consumption behavior may have some negative effects and encourage the customer to make installment bills.

The Agricultural Bank of China also stated that some users with low credit card scores will be classified as low-credit users, and will be subject to various levels of reductions from 30% to 50%. Branches in various places will also follow up. Derate customers suspected of being at risk. Ping An, Shanghai Pudong Development Bank, Hua Xia and China Guangfa Bank all have similar operations. Once the credit is reduced, it means that these card slaves have already failed to pay the card. They can only resort to other P2P or consumer loans to seek help from third parties. The platform uses debt to support debt. This behavior is very dangerous and will only deepen the debt.

The "hard days" of card slaves are coming

Not only overdue, the "rectification" of the credit card market also includes cash-out behavior, which means that those who used to use credit cards Card slaves who raise cards are about to face hard times.

The bank itself accepts formal cash withdrawal business, but many people choose to bypass the bank, mainly because the bank needs to pay a part of the handling fee for cash withdrawal, and the interest rate in the later period is high. Many people think of using fake consumption to get cash. Many people use POS machines to cash out fake consumption. The general interest rate is 0.05%, but cashing out through banks costs 1%. In other words, it takes 1% to cash out 10,000 yuan through a bank. The charge is close to 100 yuan, while using "Wild Road" only costs 5 yuan. The difference between the two also makes many people choose to cash out through false consumption. But things are different now. Once arbitrage occurs, it will be strictly investigated.

On the one hand, banks are increasingly punishing people who cash out, and they are monitoring the flow of funds in real time. Each bank has adopted a relatively strict risk warning system and uses big data to identify when credit cards are being used. There may be abnormal transactions in the process.

Once the user is deemed to have cashed out by the bank during the process of using the credit card, he or she will receive a "warm reminder" from the bank. If the user continues to ignore the warning, the bank will unilaterally lock the card or Derate.

On the other hand, when using credit cards, card slaves should use them in a standardized and abiding manner, so as to avoid being targeted by banks and continue to live a "good life".

Be careful of being "riddled" when cashing out

In addition to being targeted by banks, cashing out can also easily create loopholes for many criminals. According to The Paper, Liu had an unpaid credit card bill of 10,000 yuan and happened to see the agency repayment business posted by Wang on the Internet.

Liu added the other party as if grasping a life-saving straw. Wang helped Liu advance 10,000 yuan in cash through Alipay transfer. The two parties agreed that the loan would be for one day and the interest would be 200 yuan. However, Liu only paid back 1,000 yuan and promised to repay the remaining 9,000 yuan a week later. However, when the time was up and he did not pay back the money, Wang sued Liu to court and asked Liu to repay 9,200 yuan.

After ruling, the defendant Liu returned 9,000 yuan in cash to Wang without having to pay a handling fee because Wang used a credit card to cash out the money and was illegally engaged in cash settlement business and wanted to profit from it. , is an illegal act.

This example also warns everyone that when using credit cards in the future, even if you want to cash out, you must go through formal channels such as banks, otherwise you will easily be deceived by people with bad intentions.

Banks are strictly investigating credit card violations. Type 3 POS machines have been blocked. They will be blocked after just one swipe. Is your card okay?

Recently, some credit card users have been complaining that they have been The credit card you use has been reduced or even blocked for "no reason". What is the reason? Let me analyze it for you:

The first point: Banks’ control over credit card risks has been escalating recently, and those with card risks or violations may have their cards reduced or even blocked.

Which card-using behaviors are most likely to be risk-controlled by banks?

1. Repeatedly swiping cards on the same POS machine for several consecutive months.

2. Credit cards used Alipay too much for payment in a short period of time, and the amount of each transaction was close to the single limit.

3. Large transactions beyond normal business hours.

4. Credit cards have been short-term for a long time.

5. Frequently conduct integer single transactions.

Second point: Improper selection of POS machines, use of illegal POS machines or code-hopping, reduced or reduced POS machines

1. Illegal transfer of machines. According to my country UnionPay regulations, POS machines It can only be used in the registered location. If you move the machine across regions without permission, you will be warned or even frozen at the POS terminal.

2. Code hopping refers to jumping from one merchant type (industry) to another merchant type (industry). The payment company uses back-end technology changes to change merchants whose handling fees are in the standard category into reduced categories. Merchants, even 0-rate merchants, are then sent to the UnionPay system, and merchant fees are charged according to standard merchants. However, the fees charged by the card issuer and UnionPay are based on the fees charged to the payment company according to the changed merchant. The interest rate difference is the "income" brought by the payment company's code hopping. Although the payment company has benefited, the bank's income will inevitably be damaged, so it will be reduced or the card will be blocked.

3: Banks lose money by swiping their cards at discount or charity POS machines for a long time.

The third point: This kind of POS machine that has been blacklisted by UnionPay may also lead to derating and blocking of cards, and there may be people running away or not being paid at any time. It is recommended not to do so. use.

So how to avoid being derated and blocked?

1. Credit card code of conduct

1. Swipe your card frequently and have a large credit limit. It is best to swipe up to 70% of your credit limit every month.

2. Provide comprehensive information when applying for a card.

3. Try not to use credit cards to withdraw cash.

5. Avoid long-term overdue credit cards.

Second, choose a regular clearing machine that has passed safety certification and does not use a code hopping machine. This can not only protect the safety of your funds, but also help you quickly increase your limit.

The above pictures are all formal payment companies and they are relatively stable. You can use them as a reference.

Strict inspection of consumer loans will begin in the near future. Is there any violation of credit card business?

1. I think it is not illegal to strictly investigate the consumer loan and credit card business, because the current economic conditions are indeed very stressful.

In terms of economic income, it is indeed very small, so many people choose to use credit cards. If there are real violations, people will not use them anymore.

2. The China Banking and Insurance Regulatory Commission discovered problems with personal consumption loans. It is required to further regulate personal consumption loans. In order to increase inspection efforts, reasonable consumption needs will be met and the use of funds shall not violate regulations. The business management and processing of credit cards will be strengthened. This will not only strengthen management for individuals but also strengthen people in the entire country. Management, most people will still accept this good management standard.

3. With the compact pace in recent years. My credit card and consumer loan business is constantly accelerating development, and in the process it has deviated from the essence of consumption. In this compact era, my Weibo income alone cannot satisfy the current quality of life, so 80 % of people will choose to use credit cards, and credit cards have become a must-have card in people’s wallets.

Four. In order to meet individual needs, this bank will continue to strengthen consumption management and credit card business processing. It allows people to use credit cards safely and securely, and credit cards also meet the needs of people from all walks of life, whether in entertainment, travel or other aspects, and have played a positive role. Credit cards have solved people's financial problems in a timely manner. Of course, there are still some shortcomings in using credit cards.

The China Insurance Regulatory Commission will increase its efforts to further improve the service and use of credit cards, and hopes that the general public can use credit cards reasonably.

This is the end of the introduction on why it is necessary to strictly check personal credit cards, credit cards and whether credit will be checked when applying for a bank card. I wonder if you have found the information you need?