Many people say that they applied for a credit card because they had no money. This fact is undeniable. The interest-free period of a credit card can provide cardholders with cash flow. However, you do not need to be short of money to apply for a credit card. You must understand credit cards correctly to avoid misunderstandings.

Credit cards have many advantages, and capital turnover is only one of them:

1. Build personal credit

Credit card points can be used as cash, usually as much as the maximum amount is enough. To redeem gifts online, you can also exchange points for airline miles and then exchange them for air tickets, points for hotel stays, Starbucks, movie tickets, etc.

In order to promote credit cards, banks will also provide many benefits, such as backpacks and suitcases for novices, free annual insurance, free physical examinations, free Asia, free airport parking...

We also cooperate with various merchants to hold discounts and discounts every month, such as 50% off on Wednesdays, 90 yuan in lieu of 100 yuan vouchers, half-price movies...

These are all Exclusive to credit cards, debit cards have never brought you such discounts. You spend real money without losing a penny.

2. Convenient checking of accounts

Accounting is a relatively cumbersome matter, and if you use credit cards for daily consumption, for example, Alipay and WeChat are bound to credit cards, and you can go to the supermarket to buy things. , or shopping on Taobao, then the consumption record can be used as your monthly bill, which can be accurate to the merchant, or you can manually make notes on the APP, saving a lot of trouble.

3. Convenient international payment

It is not that easy to achieve overseas consumption with a debit card. Even overseas online consumption is difficult, because most of the consumption is through VISA/Mastercard. Channels, only a few websites support UnionPay cards. Some international exams, such as CISA CISSP, etc., require direct deduction of U.S. dollars through the visa/mastercard channel. Debit cards will not work, but credit cards issued by domestic banks will. If you are spending money abroad, it is best to prepare an international credit card.

4. Pre-authorization reduces transaction costs

One of the more important functions of credit cards is "pre-authorization". See the encyclopedia explanation:

Pre-authorization business refers to A special merchant obtains from the card issuer a payment commitment within 30 days that does not exceed a certain percentage of the pre-authorized amount, and the card issuer honors the payment after the cardholder obtains goods or receives services. Generally speaking, it is a business that first freezes part of the funds in the bank card as a deposit, and then settles according to the actual consumption amount.

Don’t underestimate this function, it is very useful for personal fund flow.