What are the Pros and Cons of Having a Credit Card?

Credit cards, also known as credit cards, are credit certificates issued by commercial banks or credit card companies to qualified consumers. It is in the form of a card with the name of the issuing bank, the expiration date, the number, the name of the cardholder printed on the front, and a magnetic strip and signature strip on the back. Consumers holding credit cards can go to the special business service department for shopping or consumption, and then the bank makes settlements with the merchants and cardholders, and the cardholders can overdraft within the prescribed amount.

credit card

Credit cards, also known as credit cards, are credit certificates issued by commercial banks or credit card companies to qualified consumers. It is in the form of a card with the name of the issuing bank, the expiration date, the number, the name of the cardholder printed on the front, and a magnetic strip and signature strip on the back. Consumers with credit cards can go to a special business service department

The earliest credit cards appeared at the end of the 19th century. 19th

• According to different card issuers , it can be divided into bank cards and non-bank cards

• • Pre-cash is not encouraged, repayment is made after consumption, enjoy interest-free repayment period, and can be repaid in installments (with

    POS card swipe

    in

    Credit card installment means that when a cardholder uses a credit card for large-scale purchases, the card-issuing bank pays the merchant one-time consumption funds for the goods (or services) purchased by the cardholder, and according to the cardholder's application, the consumption funds are passed in installments The cardholder's credit card account is deducted, and the cardholder carries out the repayment according to the monthly credit amount. In the past, credit card installment mainly includes two types of bill installment and single consumption installment. Banks usually charge corresponding fees according to the number of installments. Whether it is a bill installment or a single consumer installment, the premise is that the consumption behavior is generated first, and then the bank sets the installment repayment for the generated credit loan. ^[10]

    • Within the issuing bank

      This method includes:

      There are five major credit card brands in the world, two major organizations, VISA International and MasterCard International, and American Express, Diners Club, and JCB. Japan International Credit Card Corporation (JCB) Five professional credit card companies. There are also some regional credit card organizations in various regions, such as EUROPAY in Europe, China UnionPay, and the United Credit Card Center in Taiwan.

      China UnionPay

      1. Submit a bill

         Credit card cancellation is necessary if you do not plan to continue using the credit card. If there is no cancellation, the bank will charge an annual fee for the credit card.

         If the card is not overdrawn, you can apply for cancellation at any time.

         If the card has not expired, you need to make an application first, and then go to the bank to cancel the account after a certain number of days. If the card has expired and the account balance is zero, you can go to the designated bank outlet to go through the process of account cancellation. When canceling an account, you should bring an original valid ID card and a card. If you are not convenient to handle the account cancellation procedures, you can do it on behalf of another person. The agent is required to hold the power of attorney written by the client (person) and carry a valid ID card to carry out the sales business.

         If your card is not expired during credit card cancellation, some banks require you to go to a designated outlet to handle card collection. After a certain period of time (up to 30 days), you can go through formal account cancellation procedures. This is mainly because if the cardholder has done a manual card transaction before the account is cancelled, the merchant has not submitted the card order to the bank at the time of the account cancellation, and the cardholder has already cancelled the account, so that the bank cannot normally liquidate. On the other hand, if the cardholder spends or withdraws money overseas, it may be cleared in a few days. If the account is cancelled immediately, it will also affect the normal settlement of the bank.

         • Credit cards can easily lead to excessive spending. This is a common problem for people caught in credit card debts. There is no pain in swiping money with swiping a card, so swiping the card is even more unrestrained.

         • The annual interest rate of credit cards is as high as 18%, which is a usury, which can make borrowers lose blood quickly.

         • Credit card debt brings stress. Some Kanu reports that they are often afraid of opening mailboxes or mail.

         • Bad credit makes the cost of borrowing money even higher.

         • Credit cards provide an option to support debt with debt and quench thirst, leading to debt out of control.

         In addition, many "benefits" are actually hidden traps.

         • Short-term preferential interest rates ultimately outweigh the benefits. A certain percentage of people turn emergency financing into long-term debt. Therefore, don't be tempted by short-term low interest rates and make unnecessary loans.

         • Too many personal credit lines are not only evidence of good credit (the repayment record is), but rather a risk in the eyes of the financier, which may push up the lending rate.

         • The rewards of the reward program often accumulate dust in the garage. Instead of spending to get the gifts, it is better to save money directly.

         Ping An Bank

         Annual fee waiver policy: 6 times of the next year's annual fee without credit card swipe card ^[12-13]

         credits

         The credit limit refers to the maximum overdraft limit that the bank gives you when you approve your credit card. You can only use the credit card to spend within this limit. If you exceed this limit, you cannot use the credit card to spend normally. The credit limit is based on the comprehensive evaluation and approval of the information you filled in when you applied for a credit card and the relevant supporting documents provided. The main card and auxiliary cards share the same limit. Under normal circumstances, the RMB limit and the USD limit of a dual-currency credit card line can be converted to each other. For example: your limit is 30,000 RMB. When you use a card overseas, your credit limit is approximately equivalent to 5,000 USD.

         The credit limit will be adjusted regularly by the bank, but you can proactively provide relevant financial proof to request adjustment of the credit limit. In addition, when you need a higher limit in a certain period of time when traveling abroad, moving to a new home, etc., you can request an increase in the temporary credit limit.

         What is the "second quota"

         The second quota, which is the so-called quota that can be used in installments, is an external quota that does not take up your original quota. According to ME Love Card, China Everbright Bank and Bank of China also support banks that use the second quota in installments.

         Trading day

         The date on which the cardholder actually used the card transaction.

         Accounting date

         Also referred to as "accounting date" refers to the date on which the card-issuing bank records the transaction amount into its credit card account after the cardholder uses the card transaction, or the date on which the card-issuing bank records the relevant fee into its credit card account according to the relevant agreement. The general bookkeeping date is the second day of the cardholder's actual consumption date. For example, if you shop and spend on December 1, the general bookkeeping date is December 2.

         Billing day

         The billing date refers to the date on which the card-issuing bank regularly collects all transactions and expenses incurred in the current period of the cardholder's credit card account, and calculates the interest and calculates the cardholder's current repayment.

         Repayment day

         The date on which the cardholder actually repaid the credit card to the bank.

         Interest-free repayment period

         For non-cash transactions, the date from the bank's bookkeeping date to the repayment due date is the interest-free repayment period. The interest-free repayment period is a minimum of 20 days and a maximum of 56 days. During this period, as long as you pay off the current repayment amount on the current account statement in full, you do not need to pay any non-cash transactions for the bank to advance the interest on the funds of the store (the advance loan does not enjoy interest-free benefits).

         Repayment due date-The last date on which the cardholder stipulated that the cardholder should repay all or the minimum repayment amount.

         For example, the monthly billing period of a certain credit card is from 201 * 28 * to (* + 1) 27, such as August 28, 2012 to September 27, 2012, if any day in this period (September 23) Purchased goods, then the transaction date is September 23, 2012, the general credit card accounting date is September 23, 2012, and the billing date is September 27, 2012 (different lines) If the repayment is made on September 25, September 25, 2012 is the repayment date, and the repayment due date is October 17, 2012 (assuming that the extended payment period is 20 days, and September 27 plus 20 Days are October 17.)

         For the longest repayment period (50 days), you can choose to shop on August 29, 2012.

         Cardless payment channel

         China UnionPay credit card can be used to pay online without opening online banking. It is mainly based on UnionPay's cardless payment channel. Credit card holders do not need to use online banking for authentication payment, fast payment and ordinary payment. Cardholders use their credit cards for online shopping. No need to open

         On March 11, 2014, the two Internet giants Tencent and Alibaba announced that they will officially issue online credit cards next week, with the partners being CITIC Bank. ^[14]

         In April 2016, the People's Bank of China issued the Notice of the People's Bank of China on Issues Related to Credit Card Business, which came into effect on January 1, 2017.

         The "Notice" requires the management of the upper limit and lower limit of credit card overdraft interest rates. The upper limit of overdraft interest rates is five ten thousandths of the daily interest rate, and the lower limit of overdraft interest rates is 0.7 times the five thousandths of daily interest rate.

         Mainly based on the following considerations: First, the implementation of step-by-step and gradual reforms will help card issuers to further accumulate pricing data and experience during the transition period and guide them to improve the credit card interest rate pricing mechanism.

         Second, the credit card risk control capabilities and pricing capabilities of different card issuers are uneven, and guidance on the upper and lower interest rates is helpful to avoid individual card issuers' blind price reductions and price wars, leading to unfair competition and excessive borrowing by high-risk customers, thereby increasing credit risk. , Causing local chaos in the market.

         Third, when the information disclosure mechanism needs to be strengthened, setting an overdraft interest rate cap is conducive to preventing individual card issuers from unreasonably charging excessive interest and protecting cardholders' legitimate rights and interests. ^[15]