Credit card debt ratio

How to calculate the credit card debt ratio

1. The debt ratio inquired by the bank is calculated as follows: all liabilities (including credit cards and loans)/(income base), while the debt ratio of credit cards is generally calculated according to the used/available credit lines of credit cards. It should be noted that the credit card debt ratio is real-time and will be seen when the bank approves it. If it is high, it will affect the approval and withdrawal.

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

Extended data

Credit card characteristics

1. Cash deposit in advance is not allowed. You can enjoy an interest-free repayment period and can repay in installments (minimum repayment amount). Join VISA, MasterCard, JCB and other international credit card organizations, which are universal.

2. It is one of the fastest developing financial services, and it can replace the traditional cash circulation in a certain range.

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

It is a high-tech product integrating financial business and computer technology.

Refer to Baidu Encyclopedia-Credit Card

Refer to Phoenix.com -3 easy ways to reduce credit card debt!

What about credit cards with high debt ratio? Try these methods.

The direct impact of high personal debt ratio is that it will reduce the repayment ability, and the most important thing for credit card approval is the applicant's repayment ability, so it is more difficult for people with high debt ratio to apply for credit cards. So, what's the solution?

What about credit cards with high debt ratio?

1, bill repayment

Pay off the credit card before the bill date comes out, so that the monthly repayment amount will become zero after the bill comes out, and the debt will be gone. Of course, I am not afraid of too much debt. However, this requires the cardholder to have a strong economic ability, and of course, you can also find someone to borrow money to repay.

2. Apply for credit card installment payment

Credit card installment can divide the current bill amount into multiple periods, thus hiding the true debt ratio and naturally reducing the monthly debt. However, some banks can't. Even by installment, the total amount of installment will still be superimposed on the total overdraft limit, so installment is not everything.

3. Cancel useless credit cards

Including cards that are used less frequently, or sleep card that has not been used for a long time, as long as the card is opened, the credit limit will be displayed on the credit report, and the overall debt ratio will also increase. I didn't notice that the annual fee would be deducted, which would increase the risk of overdue. So canceling useless credit cards is also a way to reduce debt.

4. Avoid excessive overdraft.

Credit cards can be used, but it is best to spend within your repayment ability and try to avoid excessive overdraft. After all, the monthly income and consumption quota are completely unequal, and your self-control ability is poor and you spend a lot of money. These are the causes of assets and liabilities.

Here, I suggest that you swipe your card with a credit card every month, not exceeding 80% of the credit card limit, repay on time, and develop good consumption habits.

Can I apply for a credit card with high debt ratio?

Credit card processing depends not only on the applicant's personal credit information, but also on the applicant's debt ratio. If the debt ratio is high, the risks that banks have to bear are relatively large. In order to avoid risks, the bank will look at the repayment ability of the applicant before deciding whether to approve the card. So is the debt ratio high enough to apply for a credit card?

1. Screening banks: Different banks have different auditing standards for debt ratio, some cannot exceed 70%, some cannot exceed 50%, and some cannot exceed 30%. If your debt ratio is as high as 50%, at this time, you should avoid such banks and choose banks with lower thresholds.

2. Be prepared to reduce the debt ratio in advance: First, you can cancel the credit cards that are not commonly used, and then pay off the high-amount debt bill in stages to make your monthly consumption more stable, thus reducing the debt ratio. In addition, you can try to repay in advance, use some spare money in your hand to repay, and then brush it after the credit card application is completed. At the same time, don't touch small online loans for half a year.

In short, it is difficult to apply for a new card or loan if the credit card debt is too high. In other words, the high debt ratio will have an impact on credit card applications. If you don't want to get a card rejected, you must reduce the debt ratio before getting a card and keep a good record of using the card, so as to increase your success rate.

The above is the relevant content of dealing with high-debt credit cards, hoping to help netizens.

How to calculate the credit card debt ratio? What's the impact?

Whether it is a credit card or a loan, or a credit card withdrawal, the bank may refer to the cardholder's credit card debt ratio. And many people don't know how to calculate this debt ratio, what impact will it have? Here, I will give you a brief introduction.

How to calculate the credit card debt ratio?

Credit card debt ratio is mainly related to credit card fixed amount and used amount, which is expressed by the formula: credit card debt ratio = used amount of credit card/fixed amount of credit card.

On a monthly basis, the bank refers to the monthly debt ratio. For example, if the credit card limit is 1 000 yuan, the book consumption is 500 yuan, and the water and electricity fee is 500 yuan, then the monthly usage limit is 1 000 yuan, and the monthly debt ratio is1000/ 1 0%.

It should be reminded that banks refer to the debt ratio of credit cards in the past six months when approving credit cards, loans, or cash withdrawal of credit cards. If the debt ratio exceeds 50%, it means high debt. Even if the cardholder has a good credit record in the past, he will still be added to the grey list because the bank thinks that there is overdue risk in the future, and there is basically no hope for handling cards, loans and withdrawals.

What if the credit card debt ratio is high?

I don't want to affect credit card, loan approval or increase the quota because of the high credit card debt ratio. It is best to start reducing the debt ratio of credit cards six months ago.

1. If you spend a lot and are unable to repay, you'd better spread the total debt to each month in installments, and the monthly debt will be reduced.

2. If there is a credit card that is not commonly used, it is recommended to cancel it after paying off the arrears. As for whether to return the card or cancel the account, it mainly depends on how many credit cards there are in the name of the same bank to make a decision.

3. Try to make money and pay off the card debt. The card debt is reduced, and the debt ratio is naturally reduced.

How high is the credit card debt ratio? Will affect the overall performance.

When we handle bank credit business, banks pay more attention to personal liabilities in credit reporting, especially for friends who have done credit cards. A debt ratio can be counted separately by credit card, and high debt will affect the card and loan. It is said that 80% people don't know how high the credit card debt ratio is. Here are two formulas to teach you how to calculate.

As we know, the personal credit report has a detailed record of the credit business, such as the total credit line and the total use line of credit cards and loans, in which the total credit line includes the credit card line. We can calculate the current total debt ratio of credit card according to the total credit line of credit card (fixed+temporary+special) and the monthly bill amount of credit card.

It should be noted that the calculated debt ratio is different according to the time when the bank reports the bill to the central bank every month. For example, the bank reports bills, and the statistics are the debt ratio of bills issued last month; If bills are reported in the future, the statistics are the debt ratio of invoices this month.

They all use a calculation formula: credit card bill amount/credit card total credit line. If the calculated debt exceeds 70%, it is considered as high debt, and if it is lower than 50%, it is considered as normal debt. High credit card debt ratio will reduce our comprehensive score in the banking system. Comprehensive score is an important reference factor for banks to approve loans and cards. If the comprehensive score is insufficient, it will lead to rejection.

If you want to reduce the debt ratio, there are two solutions, one is to pay off the card debt, and the other is to make more money. When the card debt is reduced, the debt ratio is naturally low. The higher the income, the higher the bank's tolerance for cardholders.

Can I apply for a credit card with high debt ratio? There are three solutions.

When a bank handles a credit card, it will go to the central bank's credit information system to check the applicant's credit status. In addition to checking whether there is bad credit, they will also check the applicant's debt status. After all, for banks, if a person's debt ratio is too high, his overdue risk is even greater, and banks are naturally reluctant to approve cards.

In other words, the high debt ratio has an impact on the card. If you don't want to be rejected, you'd better reduce the debt ratio before applying for a credit card. So, what about credit cards with excessive debt ratio?

Give you some advice:

1, making 0 bills.

The so-called zero bill is the money spent before celebrating the bill, so your credit card repayment amount in this period is zero, so the "debt" level in your newspaper will be very low. It should be noted that one or two small notes have little effect on reducing the debt ratio, and it is best to keep small notes for half a year.

2, used for temporary storage

By handling credit card installment, you can hide the true debt ratio. The more stages, the deeper the concealment. For example, if you have a debt of 20,000 yuan in the current period, handle 36 installments, and then spread the 20,000 yuan evenly to repay it every month, so that your credit report will not show the debt of 20,000 yuan.

3. Unused credit cards should be cancelled.

As we all know, when issuing credit cards, banks need to consider the applicant's total credit line to avoid excessive credit. A person's credit report shows too many cards, which will make the bank think that your actual economic ability does not match your repayment ability and there is a certain repayment risk.

It is suggested to cancel some credit cards that are not commonly used before handling cards, and the number of cards and the total credit line should be controlled within a reasonable range, preferably around 5 cards.

The above-mentioned "debt ratio is high enough to apply for a credit card?" . In short, credit card debt is too high, and it is difficult to apply for a new card. Therefore, if you want to apply for a card without being rejected, you can refer to the above three methods to reduce the credit card debt ratio.

The introduction of debt ratio credit card ends here.