1. Debt ratio and rate of return
Credit cards have an interest-free period. After that, penalty interest will be imposed according to the daily interest rate, which is generally compared with the bank loan interest rate. The yield of many relatively safe wealth management products is expected to be compared with the 1 year deposit rate. It is not cost-effective to buy bank wealth management and money funds with credit cards.
If you buy a product with expected high yield, it means high risk. It is possible that the rate of return will not meet expectations and there may be losses. Therefore, it is more risky to buy high-risk financial management with credit cards. Fortunately, the high yield of wealth management products has really been realized, with some gains. If you are unlucky, the gains will not be realized and the losses will be even greater.
2. Credit card interest
Although credit cards have an interest-free period, many people can't actually return them in time, and sometimes they forget their card debts. Especially when purchasing wealth management products, the term of wealth management products is generally longer than the interest-free period of credit cards. It means that if you buy a wealth management product with a credit card, you must bring interest.
3. Income from wealth management products
The income of wealth management products is generally not fixed. Now most wealth management products are non-guaranteed floating income, including bank wealth management. That means that if you buy wealth management, you may lose money and have no income.