The temporary quota has provided us with a lot of convenience on most occasions. When money is tight, the temporary quota relieves our economic pressure to a certain extent, so that we will not live a life of eating soil.
However, many things are like two sides of the same coin, and there are always advantages and disadvantages. We need to be careful about some problems to prevent unnecessary trouble.
The temporary credit line will be collected at the meeting, which may be unfavorable for applying for a new card.
If we have a temporary cash flow problem and want to apply for increasing the temporary credit limit, the issuing bank will check our credit report at this time and leave an inquiry record. Once there are too many inquiry records, it also reflects our economic situation from the side, which is also unfavorable for applying for new cards or other loans.
If the temporary limit is too high, don't feel lucky. This limit may appear in the detailed version of your credit report. If you go to the credit report, you will be affected if you want to apply for a credit card or loan in the short term.
Temporary credit line is not recoverable.
The difference between a temporary credit line and a fixed credit line is that the credit line cannot be recovered, and the credit line will be restored to the previous fixed credit line after expiration. If the cardholder wants to continue to use the temporary limit, he needs to apply again.
It may not be conducive to the promotion of quotas.
After the cardholder uses the temporary quota and pays it off, some banks can allow the cardholder to apply for converting the temporary quota into a fixed quota, which is equivalent to withdrawing cash in disguise to some extent.
Some banks' credit cards may increase the temporary quota, which may have a bad influence on increasing the fixed quota. Because there will be a time interval for credit card to increase the fixed limit, some banks will take the opportunity to increase the temporary limit. Compared with temporary quota, most users should prefer fixed quota.
Temporary lines cannot be used for installment invoicing.
As we all know, a fixed amount can be repaid in installments and you can also enjoy the minimum repayment amount. However, these have nothing to do with the temporary quota. Most banks require cardholders to repay in full after the temporary limit expires. If you can't repay in full, there will be overdue records.
The temporary quota is no longer interest-free.
Everyone wants to save money when they go out to spend, and the temporary quota does not enjoy the interest-free period. In this way, the temporary quota can only be used for emergency, and it is impossible to say that it is cost-effective.
Once the temporary limit is used, interest will be generated when spending by credit card. Interest shall be calculated from the date of consumption, and shall be calculated on a daily basis, with a daily interest rate of five ten thousandths. For example, we took a fancy to a commodity in the mall, and the price was 800 yuan. After spending by credit card, there will be interest on the amount in 800 yuan, and the daily interest is 8 million * 5/10000, which means that we have to pay 0.4 yuan interest outside the debt itself every day.
Everyone has a convenient psychology, but before using the temporary credit line, it is still necessary to weigh in mind whether the advantages outweigh the disadvantages or the disadvantages outweigh the advantages if using the temporary credit line.