Why are credit cards regulated?

Why is a credit card subject to post-loan management?

Post-loan management may occur as long as any credit business is handled. Credit business not only refers to loans, but also includes our commonly used credit cards.

So, if there is post-loan management even though there is no loan, it must be because you have applied for a credit card.

From the date of credit card account opening to the date of credit card cancellation, banks also conduct post-loan management from time to time to understand the cardholder's credit, solvency, liabilities, etc.

Under what circumstances will it be subject to post-loan management?

After applying for a credit card, the bank’s post-loan management time is not certain. In addition to routine risk checks every few months, some card usage behaviors of cardholders will also cause the bank to conduct post-loan management. of.

For example, when applying for a credit card limit increase or installment payment, some banks require a credit check. The reason for the inquiry is post-loan management. In addition, if the cardholder has abnormal card usage behavior, such as frequent inflows and outflows, or having someone else repay the loan, etc., if the risk is detected by the system, the bank will conduct post-loan management to understand the cardholder's current credit status.

What is the impact?

Post-loan management is a neutral inquiry and will not have any impact.

However, there are also some cardholders who have had their credit cards reduced or blocked after being managed by the bank. This cannot be blamed on the post-loan management, but because the bank found out that the cardholder had borrowed money during the post-loan management. Only when the risk is high will measures be taken to stop losses.

The factors that determine bank loan interest are:

1. Bank costs. Any economic activity requires cost-benefit comparison. There are two types of bank costs: borrowing costs - prepaid interest on borrowed funds; additional costs - expenses incurred in normal business.

2. Average profit rate. Interest is a subdivision of profit. Interest must be less than the profit rate. The average profit rate is the highest limit of interest.

3. The supply and demand situation of lending currency funds. If supply exceeds demand, loan interest rates will inevitably fall, and vice versa. In addition, loan interest rates must also take into account price changes, securities income factors, political factors, etc.

However, some scholars believe that the highest limit of interest rate should be the marginal rate of return of funds. The factor that constrains the interest rate is regarded as the ratio of the increase in profit of the enterprise after borrowing a bank loan to the amount of borrowing and the loan interest rate. As long as the former is not less than the latter, the company may borrow from the bank.

Bank loan interest rate refers to the ratio of interest amount to principal amount during the loan period. my country's interest rates are uniformly managed by the central bank. The bank loan interest rate refers to the benchmark interest rate set by the central bank, and the actual contract interest rate can fluctuate within a certain range based on the benchmark interest rate.

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, the bank has tightened risk control and has limited repayment ability. Those who are not strong will take measures to block cards and reduce their quotas.

2. There are many people using 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.

Why credit cards are risk controlled by banks

The only way to crack risk control is to try to avoid large and frequent transactions.

Risk control (risk control), in layman’s terms, means controlling risks, eliminating or reducing the possibilities of risk events, or reducing losses caused when risk events occur.

Bank card risk control, basically as long as you use it a lot and use it a lot, almost everyone has experienced it.

For debit card risk control, cases known to us include China Merchants Bank, Shanghai Pudong Development Bank, Industrial Bank, etc. Most of them are due to the triggering of anti-XQ warnings, resulting in restrictions on non-counter transactions (non-counter transactions), and some will directly cancel the card. Once this kind of risk control is triggered, it will be very troublesome to unblock it, and many banks' debit card risk control will even lead to the blocking of credit cards. The most typical one is China Merchants Bank. The risk control of China Merchants Bank's credit cards is extremely low. Basically, it doesn't matter how you use it. It's like entering a so-called black room (no temporary limit, no installments). However, the risk control of debit cards is extremely strict. Yi's card was blocked due to anti-XQ risk control, which in turn caused his credit card to be blocked.

Recent cases of Agricultural Bank of China blocking cards are common, with funds frozen ranging from tens of thousands to tens of millions. Someone was even frozen 7 times. Most of the frozen accounts are in areas with developed foreign trade, such as Beijing, Shanghai, Guangzhou, Shenzhen, Yiwu, and Quanzhou. Most of the frozen accounts are carried out by people from other places. The unfreezing time and conditions vary. Some people were frozen for three days before being unfrozen, and then frozen for half a year; some were frozen last year and have not been unfrozen yet; some were asked to pay 15% of the frozen fee to be unfrozen; and some were asked to go to the place of freezing first. Pay an administrative fine", which is as high as 30 in some places.

With credit card risk control, the threshold for triggering is much lower. Late night shopping, overseas purchases, and short-term purchases in other places will all receive greetings from the bank via text message or phone call.

When babies indulge in shopping, they will feel very uncomfortable if they are suddenly interrupted by a risk control call. However, sometimes, this "trouble" will also bring a guarantee to the security of your account.

The purpose of risk control is to protect the bank. When everyone applies for a credit card, the probability of non-payment in the future is different.

Xiao Ming’s total income is high, his past credit is good, and he has a high probability of continuing to repay on time in the future. But if he repays on time every time, how will the bank make money?

Xiao Hei has a low income and has relied on credit cards for a long time. After the bank issues the card, what should he do if he still refuses to pay?

The risk control department must consider not only the credit granted to them, but also how much credit to give them, how often to adjust the credit limit, and monitor the cardholder's usage and repayment status, etc.

Credit card risk control, the more classic ones include Pudong Development Bank’s so-called five-level text messages (the text messages are different now, but the essence has not changed. From the first level of "warm reminder" to the last level of warning, it is directly closed). Others include Bank of Communications’ risk control system inherited from HSBC, CITIC’s points clearing incident in the past two years, and GF’s 500 party (8 yuan party), etc.

In the past two years, in addition to the above-mentioned common banks with stricter risk control, many banks have also been sending out risk control text messages, including ICBC, Bank of China, Industrial Bank, Hua Xia and other banks that claim to have low risk control. bank. For example, Xingye, which has very low risk control, sent such a derating text message.

Under what circumstances will a credit card be subject to risk control? How to solve the problem if your credit card is subject to risk control?

Nowadays, many people use credit cards for consumption in daily life. However, in the process of using credit cards, many people may sometimes be subject to bank risk control due to improper use. Therefore, many people will ask. : Under what circumstances will a credit card be subject to risk control? And how to solve the problem if the credit card is subject to risk control? Let me answer it for you today.

What is credit card risk control?

Credit card risk control is actually credit card risk control. When the cardholder uses the credit card, if there are some improper operations, the bank may conduct risk control on your credit card in order to avoid or reduce the risk. .

Under what circumstances will a credit card be subject to risk control?

1. Illegal cash-out operations

If you use a credit card to cash out, because cashing out with a credit card is illegal, you are likely to be targeted by the bank, causing your credit card to be Risk control.

2. Abnormal credit card consumption

If you use a credit card to make purchases improperly, it is easy to be controlled by the bank, such as swiping the card during non-merchant business hours, and swiping the card. If the credit limit is too high, for example, if the credit card limit is more than 90, or if the card is swiped frequently in a short period of time, these situations may cause your credit card to be risk controlled.

What are the consequences of credit card risk control?

The consequences of credit card risk control are very serious. The bank is likely to reduce your credit card limit, and your personal credit will also be affected. In serious cases, the bank will also freeze your credit card and block your credit card.

How to solve the problem if your credit card is subject to risk control?

1. Be sure not to cash out with a credit card, as cashing out with a credit card is very likely to be risk-controlled;

2. When using a credit card, be sure to use it rationally. Try not to make large purchases;

3. When using a credit card, you must repay it on time and avoid overdue payments.

The above is the answer to "Under what circumstances will a credit card be subject to risk control? How to solve the problem if the credit card is subject to risk control?" Sometimes when people use a credit card and receive a risk reminder text message from the bank, they need to pay close attention to their behavior when using the card to avoid risk control of their credit card.

What is the reason why the ICBC credit card is subject to risk control?

When we use the credit card, if we use it improperly, it is very likely that it will be subject to risk control. Then the ICBC credit card is subject to risk control. what to do?

1. Why ICBC credit cards are subject to risk control

1. If the credit card is frozen, it may be due to abnormal transactions on the credit card, such as malicious cash-out, forged information, continuous password errors, etc.

2. No matter what kind of credit card it is, if you enter the password incorrectly three times, the bank system will automatically lock the credit card password, which is similar to freezing, but not freezing. It will be automatically canceled after 24 hours.

3. If the credit card expires and is not re-applied, the bank will also freeze your expired credit card.

4. If your credit card is reported as lost multiple times in a row, the bank will think that you are suspected of maliciously reporting the loss and will freeze it.

2. How to solve the problem of risk control on ICBC credit card?

If your credit card is frozen, please bring your ID card and credit card to the bank branch to handle the unfreezing service.

3. Methods to prevent risk control:

1. If you need to spend a large amount of money, do not spend it all at once. It is best to control it to 70 of the credit card limit, and the consumption amount cannot be integer.

2. You can make several small purchases after large purchases.

CITIC Bank Card Supervision Restrictions

Being subject to regulatory restrictions means that your bank card has some illegal consumption.

Being subject to regulatory restrictions means that there are some illegal purchases on your bank card. For example, make frequent transfers in and out or make some large purchases. This will cause your bank card to be supervised. This is what is called risk control.

It should be noted that if you have too many overdue payments and the debt period is too long, the bank may have reasons to restrict your credit card. If you still haven't made any repayment despite the bank's phone call, it constitutes a malicious overdraft, and the bank has the right to request you. If it is considered a cash out, maybe you have used a credit card to get cash or points, which is an illegal operation, or the bank unilaterally believes that your card is at risk of cash out, so it will implement monitoring or reduce your limit. No card swiping records. In other words, if you apply for a credit card, but you rarely use the card to make purchases, the bank may restrict it.

Whether the bank card being monitored is serious or not, the cardholder needs to contact the bank to inquire about the reason for being monitored. Only after knowing the reason can the severity be known. The cardholder should actively contact the bank to determine the reason for being monitored and cooperate. Please contact the bank or relevant departments for resolution. Bank cards are generally supervised because the cardholder is involved in a case or the amount of the bank card changes abnormally. The bank supervises the bank card due to countermeasures or case handling needs. Bank supervision can supervise and restrict the changes in amounts, transfers, and deposits and withdrawals in bank cards, reducing cardholders' illegal operations or taking timely measures when they are involved in a case.

About CITIC Bank

CITIC Bank, formerly known as CITIC Industrial Bank, was founded in 1987 and changed to its current name at the end of 2005. CITIC Bank is one of China's national commercial banks, headquartered in Beijing. On April 27, 2007, CITIC Bank was listed on the Shanghai Stock Exchange. CITIC Bank is the seventh largest bank in mainland China, with total assets of more than HK$1.2 trillion, more than 16,000 employees and more than 540 branches. It is one of the six lines and three guarantees for Chinese financial stocks in Hong Kong. On May 9, 2020, the Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission reported that in March 2020, China CITIC Bank provided personal bank account transaction details to a third party without the authorization of the customer, violating the confidentiality of depositors. in principle. Our bureau will initiate the investigation process in accordance with relevant laws and regulations, and investigate and deal with it strictly in accordance with the law and regulations.

This ends the introduction on why credit cards are regulated and why bank cards are regulated. Have you found the information you need?