Nowadays, as the pressure of social life increases year by year, everyone, whether they are the younger generation or adults who have already started a family and started a business, is burdened with large or small debts. However, when the credit card debt is too high, , will not only affect your credit card limit, but also your loan. Even if your credit score is always good, you can easily be rejected when applying for a credit card or loan.

If you want a higher credit score, you should try to keep your debt as low as possible. So how can you reduce your credit card debt ratio?

1. Cancel unnecessary credit cards

Cardholders often have a misunderstanding that if they apply for more credit cards, they will have more money in their hands. In fact, this is not the case. In fact, multiple credit cards use a total credit limit, which means that the credit card limit in the hands of the cardholder is distributed based on the total credit limit. When the total credit limit remains unchanged, the more credit cards you apply for, the lower the credit card limit you apply for in the future. Cardholders should be reminded that due to too many credit cards in hand, the limit of a single credit card is low, but the amount swiped when using the card is too large, resulting in a high debt ratio of a single credit card, and these data will be reported uniformly, resulting in personal The debt ratio is generally too high. Cardholders can choose to cancel credit cards that are infrequently used or have too small credit limit, which can significantly reduce their debt ratio and facilitate subsequent loan approvals.

Therefore, we can cancel some credit cards that are not used frequently.

Whether you are canceling a card or an account, you can apply for cancellation at the counter or over the phone, but you need to go through a 45-day observation period to make sure that your card has no outstanding balances, balances, or negatives before it will be issued to you. eliminate.

2. Apply for installment for a single credit card with too high debt

If you have just applied for a cash installment of 200,000, then the credit card debt of this credit card should be 30 Ten thousand, after applying for installment, the 200,000 will be spread over 24 months to repay. Specifically, for each monthly bill, you only need to repay the principal fee, and the credit report will not show a debt of 200,000. When you apply for installment, the longer the installment period, the lower the monthly repayment, which indirectly reduces the debt ratio. Therefore, if you have too much debt on a single credit card, you can apply for installment in advance, and your credit report will not have that much debt. Of course, the installment handling fee must be carefully considered to see if it is within the affordable range.

3. Repay before the bill date

Credit cards have bill dates. If you pay off the balance one or two days before the bill date, the debt ratio will be reduced.

For example, if your bill is issued on the 6th of every month, then pay off the balance before the 4th. If you continue to spend money after the 8th, you only have four days. If you repeat this cycle every month, you can get a very low credit card debt ratio on your credit report.

4. Adjust the order of loan applications

When many people are in urgent need of money, they will apply for a credit card and a loan at a lending institution, but it is inevitable that they will panic because of their anxiety. .

We all know that the approval time for applying for a credit card is long, and the approval time of credit institutions is generally faster.

Therefore, apply for a loan first and then consider a credit card.

If it is discovered during the bank review process that the credit card institution has inquired about your credit record, it will also increase your personal debt ratio. So generally when applying for a bank credit card, please do not apply for many loans at the same time.

At the same time, I am also committed to helping everyone popularize common sense issues about various loans. When users apply for a loan, they will encounter loan products with different repayment methods. Since the interest rates are often expressed in different ways, for example, there are : The daily interest rate is 0.05%, the monthly rate is 1%, etc., so it is difficult to compare several products to determine which one is more economical. The price comparison tool launched by Youqianhua can help us solve this problem. Before taking out a loan, use the price comparison tool Youqianhua.com to quickly calculate the true cost of the loan and how high the actual interest rate is, helping us save interest expenses.

Comprehensive from: customer inquiries, 71 Wallet, Sohu.com