If the loan limit is suddenly reduced, why is the revolving line no longer available?


As the saying goes: "It's easy to borrow well and borrow again." Only with good credit will you be treated well, but this is only from the perspective of the borrower, not the lender. You should still borrow well. If you find that the borrower has done something wrong during the period,ofw loan without ccsl I'm sorry for any things that are harmful to your credit. I'll keep my pocket tightly closed after you pay it off.

As banks and other financial institutions, in order to ensure that the loans they have extended can be recovered smoothly, they also need to carry out "weeding and weeding" on a regular basis.personal loan calculator In layman's terms: it means to remove borrowers with poor qualifications from their loans, clear them out, and absorb the vacated quota. Well-qualified borrowers come in. This has become an established rule. Although it is a bit unreasonable, the bank's collection and withdrawal work is a daily operation, not a whim. Therefore, every year, major banks will formulate and implement annual collection and withdrawal plans.

There are roughly three ways banks can draw loans:

Requiring the borrower to add new mortgages or guarantees in addition to the effective guarantees already provided;

The bank requires the borrower to repay part of the loan in advance;

The working capital loan that has been repaid by the borrower will not be recovered.

Among these three practices,student loan the third one that hurts the borrower the most is to take the loan back without lending. Because under normal circumstances, banks will not inform borrowers of their decision to withdraw loans. Borrowers think that renewing loans is normal. In order to get loans, they will choose to borrow short-term funds from the public. As a result, they are trapped in high interest rates. Be careful and you will never turn around.

There is a saying that goes like this: "There is no love without reason in the world, and there is no hatred without reason." In fact, bank loans do not reduce loan limits or withdraw loans for no reason.

If your loan limit is suddenly reduced or closed, there are no more than the following five reasons:

1. There is a problem with personal credit reporting

The most common reason why a bank's credit limit is reduced is that there are problems with the borrower's credit report, such as overdue payments, payment stops and other adverse circumstances.

Some people will say: My credit card is overdue. I repay the loan from your bank on time every month. Why should I reduce my loan limit or withdraw my loan?

This is because banks and other financial institutions will perform post-loan management on your personal credit report. Regardless of whether it is a loan or credit card from the bank, once a bad record appears in your personal credit report, a bank risk control warning will be triggered, which will affect the borrowing. Quota and approval rate.

Let me reiterate here that regular financial institutions will check personal credit reports before lending money. Overdue debts, bad debts, reimbursements, concerns, etc. will all affect the loan amount and loan approval rate!

2. Too many hard queries

So why is my quota still gone even though I have no overdue or other adverse circumstances?

Then you may have encountered the second situation - too many queries.

Regarding hard inquiries, I have done some popular science with you in previous articles. Credit card approval, loan approval, guarantee qualification review, pre-guarantee review, etc. are all hard inquiries.

If there are more than 4 inquiry records in a month, it will be judged as a risk customer group by financial institutions, which will affect the loan limit; if the number of inquiries exceeds 10 times in three months, although it will not have a negative impact on the credit report, it will not affect the credit report. Borrowing money from formal financial institutions is undoubtedly a joke.

It should be noted that if you click on the link advertisement for test limit or credit card application out of curiosity, your personal credit report will be inquired invisibly.

3. There is the risk of long-term lending

Many friends don’t know what long lending is? In fact, long-term lending is also a key factor in bank loan reductions or withdrawals.

As the name suggests, long lending refers to the behavior of borrowing money from multiple platforms. This behavior is regarded as a high-risk customer group by financial institutions. If there are more than five individual borrowing institutions in a certain period of time, there is a high probability that it will be judged as long lending. It will affect your quota and pass rate.

4. Assets and liabilities are too high

Broadly speaking, liabilities include bank loans, small credit loans, credit card overdrafts, online loans, private loans, etc.

Asset-liability ratio = total liabilities/total assets *100%

In a certain sense, it is difficult to determine whether the debt is too high. If there are no assets, 300,000-500,000 is the maximum amount of personal credit liabilities; if there are certain assets, the liabilities generally do not exceed 70% of the total assets. Generally speaking, if the asset-liability ratio exceeds 70%, it will be judged as a risky customer, which will affect the quota and pass rate; some banks or institutions even require the asset-liability ratio not to exceed 50%, and reasonable borrowing and reasonable liabilities are also very difficult. important!

5. Bank quotas are tightened and funds are tight

The loan limit is not enough. Bank borrowing has a certain relationship with the policy. Once the loan policy is tightened, the loan limit is likely to be insufficient. The bank's own funds are also not stable enough, such as housing loans, consumer loans, mortgage loans, etc. If the assets come from third parties or there are insufficient savings, the so-called "frozen cleanup" caused by asset instability is likely to occur. At this time, everyone does not need to worry, it will naturally be unfrozen and restored after waiting for a period of time.

Nowadays, the reason why there are many loan reductions and loan withdrawals is that the interest rate is very low before you use it, and then as you use it more and more times and the amount is higher, it will increase your loan amount and the interest rate will become higher and higher, and then it depends on your repayment. Regarding the loan situation, the minimum repayment is still in installments. When your needs increase, they will want to lend you so much more. Can they recover the principal and interest? After all, to lend you money, you need to fully recover the principal and interest. To make money, if they feel that you are at risk, they will lower the limit and then check the situation. If the risk warning reaches their warning line and they feel that they cannot recover the principal and interest, they will naturally withdraw the loan.

At present, when Internet finance has entered a stage of strict supervision, it is a foregone conclusion that some personal credit lines with defects in credit reporting or consumption behavior will be closed. Also, now their own leverage is not as many times as it used to be, and their liquidity is less, and their risk assessment is more stringent. If you don’t want to be deducted from the loan, stop it for a few months, and don’t keep borrowing from it. middle.

Now, whether it is a real estate mortgage loan or a credit loan, you need to provide proof of the purpose of the loan to prove the flow of your funds. For example, if you use it for decoration, then the money must be placed in the public account of the decoration company for consumption. Consumption vouchers, if you fail to provide them for a long time or upload them falsely, there is a high probability that the credit will be cut off.

Therefore, I would like to remind everyone who is taking a loan or needs a loan to use funds in accordance with the bank's regulations. Don't take chances. Money owed to relatives and friends can be treated as an uncle, but money owed to the bank will affect your credit report. .