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The change you must recognize: What will you do if your credit line has been reduced as well?

The big banks in Israel are about to reduce the credit lines of their customers and it is very possible that you too received a message on the subject and did not notice or did not fully understand it.

Because this is a significant change, it is important to know it well and know - there is something to be done

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• Credit Card

In collaboration with MAX

Monday, 14 December 2020, 12:55

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Everything that is important to know (Photo: PR)

It is very possible that you also received a message on the subject.

"Your bank credit line is about to shrink soon" or something in the spirit of these things.

You may not have really delved into this message, which came in a letter, text message or email.

You may have read it, but did not understand it, so it is important that you know - the change along the way may affect you significantly as well.

So that you do not find yourself in the moment of truth in an unpleasant situation - here is the article you must read, today.

What exactly is going to happen and why?

The credit line in the credit card is a fixed amount, which the bank sets for its customer every month.

The customer can spend money on the credit card up to this amount.

This is a framework that is used by the customer even before his next salary comes in and covers the amount he used.

But today, when many have run into significant economic problems due to the Corona crisis, the major banks in Israel are making a move to reduce the credit facilities on their bank cards and so many customers who have planned a large expense or purchase soon and built on the credit facility will suddenly find the necessary "rope". That they are unable to complete the move and need an additional credit line.

The move in question is a result of the "Strum Act," which was enacted about four years ago and stipulates that large banks must reduce credit facilities to their customers by 50 percent.

However, the implementation of the law, which required the process to be completed by the end of 2020 and was originally intended to create better competition and benefit consumers, is now causing the opposite.

Have you also reduced your credit line?

there is a solution

Did you receive a message?

Do not ignore it (Photo: PR)

Will reducing credit facilities affect me as well?

And if so, how?

If you too are one of the customers of the big banks and hold as many of their credit cards, the simple answer is "yes", reducing the credit facilities will definitely affect you as well and therefore, it is advisable not to ignore the messages you receive on the subject.

For example, let's say that your credit line, which the bank determines according to the amount of monthly income you generate, is NIS 15,000 and out of that, you regularly use about a third for current expenses. If that line is now reduced by the bank from 15,000 to 10,000 NIS, you will suddenly find that you only have 5,000 NIS left to make any purchases. If you are planning to buy new home furniture, upgrade something in your life or even fly abroad (wherever possible these days), the new credit line may not allow you to pay For all that.

Because of this, it is important to prepare accordingly and recognize the change.

Get to know the maxBack card (Photo: PR)

The bank reduced my credit line.

Is there anything to do?

But of course, there are also solutions and reducing the credit line does not really mean that you must radically change your lifestyle.

An excellent option for dealing immediately with a reduction in the credit line is to obtain a non-bank credit card, one that is not related to the banks that are currently making the move within the framework of the same law in question.

MaxBack's non-bank credit card from max will not only give you an additional credit line, with the help of which you can complete all the purchases you want and need for you and your family - but will also give you money back on every purchase and provide you with many pampering benefits.

For example, in addition to the credit line, with the maxBack card you will also receive money back on every purchase you make by accumulating points on your card expenses.

How It Works?

In the first year you will accumulate 1% of the total purchases on the card and in the second year onwards 0.75% of the total purchases on the card.

The points can be converted, when you reach 75 points, using a digital giftcard for shopping in dozens of chains in Israel, also in online shopping, for example on the Terminal X and Mega Sport website.

In the first year you will not pay a ticket fee at maxBack and if all this is not enough, you can also enjoy various treats such as 1 + 1 for a variety of attractions, restaurants and shops in Israel.

So if you too want to prepare for the change in the doorway, it's time to pay attention to messages on the subject and join maxBack, to maintain a routine and turn the downside into an advantage.

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