Can a credit card be used to repay a mortgage?

Credit cards cannot be used to repay a mortgage. When a user applies for a mortgage, he or she will open an account at the lending bank, and the account opened will be used for repayment and deduction. To repay a mortgage, you deposit cash into a debit account, and the bank debits it on time. Credit cards can only be used for consumption by swiping the card and cannot be used to repay mortgages

According to Article 7 of the "Regulations on the Supervision and Administration of Credit Card Business of Commercial Banks": A credit card refers to recording relevant information about the cardholder's account and has bank credit lines and overdraft functions. , and provide cardholders with various media related to banking services.

Credit cards stipulated in the relevant laws of our country ("Interpretation of the Standing Committee of the National People's Congress on Relevant Credit Card Regulations") refer to credit cards issued by commercial banks or other financial institutions with the functions of consumption payment, credit loans, transfer settlement , cash deposit and withdrawal and other full or partial functions of the electronic payment card. On December 1, 2017, the "English Translation and Writing Standards in the Public Service Field" was officially implemented, stipulating that the standard English name of credit cards is CreditCard.

Credit card consumption is a non-cash transaction payment method. There is no need to pay cash when consumption, and repayment will be made on the billing date (BillingDate).

Credit cards are divided into credit cards and quasi-credit cards. Credit cards refer to credit cards in which the cardholder has a certain credit limit and can consume within the credit limit and then repay; quasi-credit card It refers to a quasi-credit card in which the cardholder deposits a certain amount of reserve fund as required. When the reserve account balance is insufficient to pay, the cardholder can overdraw within the prescribed credit limit. The so-called credit card generally refers to a credit card only.

Starting from January 1, 2021, the credit card overdraft interest rate will be determined independently by the card issuer and the cardholder through independent negotiation, and the upper and lower limit management of credit card overdraft interest rates will be cancelled. The daily interest rate is 0.7 times 5/10,000).

On May 25, 2021, the Supreme People’s Court issued and implemented the “Regulations of the Supreme People’s Court on Several Issues Concerning the Trial of Bank Card Civil Cases.”

Can a credit card be used to repay a mortgage?

Credit cards cannot be used to repay a mortgage. To be precise, a credit card cannot directly use the credit limit to pay off the mortgage. Because after you apply for a mortgage, the bank will open a special repayment account for you. You can only complete the repayment of the mortgage by depositing cash into the account or transferring money to the account.

It is not impossible to withdraw cash from a credit card and then use the withdrawn funds to repay the mortgage. However, using this method will increase the interest on credit card cash withdrawals, which in turn increases personal repayment pressure. Moreover, this method is equivalent to using bank money to repay bank loans. Once discovered by the bank, it is likely to be considered malicious. Overdraft credit card. Therefore, when repaying a mortgage, everyone should repay it honestly and not try to take advantage of legal loopholes. Using a credit card to pay off a mortgage is obviously not advisable from the possible consequences.

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1. A credit card, also called a credit card, is a credit certificate issued by a commercial bank or credit card company to consumers with qualified credit. It takes the form of a card with the issuing bank's name, validity period, number, cardholder's name and other contents printed on the front, and a magnetic stripe and signature strip on the back. Consumers holding credit cards can shop or consume at specially designated commercial service departments, and then the bank will settle the accounts with merchants and cardholders. Cardholders can overdraft within the prescribed limit.

2. Credit cards stipulated in the relevant laws of our country ("Interpretations of the Standing Committee of the National People's Congress on Relevant Credit Card Regulations") refer to credit cards issued by commercial banks or other financial institutions with the functions of consumption payment, credit loans, An electronic payment card with full or partial functions such as transfer settlement, cash deposit and withdrawal, etc. On December 1, 2017, the "English Translation and Writing Standards in the Public Service Field" was officially implemented, stipulating that the standard English name of credit cards is CreditCard.

3. Credit card consumption is a non-cash transaction payment method. There is no need to pay cash when consumption, and repayment will be made on the billing date (BillingDate).

Credit cards are divided into credit cards and quasi-credit cards. A credit card refers to a credit card in which the cardholder has a certain credit limit and can consume within the credit limit and then repay; a quasi-credit card refers to a credit card in which the cardholder can A quasi-credit card that deposits a certain amount of reserve fund and can be overdrafted within the specified credit limit when the reserve account balance is insufficient for payment. The so-called credit card generally refers to a credit card only.

4. Credit cards are generally special carrier plastic cards with a length of 85.60 mm, a width of 53.98 mm, and a thickness of 1 mm. The name of the card issuer, validity period, number, cardholder name, etc. are printed on the front and the name of the cardholder is printed on the back. Chip, magnetic strip, signature strip. Cardholders can use their credit cards to shop and spend money with special entities and deposit and withdraw cash from banks. China's credit card market is still one of the fastest growing product lines in China's personal financial services market. Although the economic benefits of the industry are full of challenges, driven by economies of scale and growth in consumer spending, the average annual growth rate of China's credit card issuance in the next 10 years will be The growth rate will remain around 14, and profitability will also tend to improve. It is expected that by 2020, the cumulative number of credit cards issued in China will exceed 800 million.

Can I pay off my mortgage and car loan with a credit card?

Yes.

Credit cards can be used to pay off mortgages and car loans. You can swipe the funds out of the credit card, and then transfer them to the debit bank card for home loans and car loans. The funds will be automatically deducted on the repayment date. However, you need to bear the card swiping fee when swiping your card.

Of course, in addition to swiping the card, you can also use the cash withdrawal function of the credit card to withdraw money from the ATM machine, and then deposit it into the debit bank card for home loans and car loans. Of course, credit cards also have a cash advance function. You can also transfer the available limit of the credit card to the bank card designated by the credit card, and then transfer it to the debit card for home loans and car loans. However, banks will charge fees for the above two methods. For example, when withdrawing cash from an ATM machine, the bank will charge cash withdrawal fees and interest. If it is a cash advance, the bank will also charge interest.

So these two methods are not recommended. Then the most cost-effective way is to swipe your card. The funds in the credit card are swiped out, and then transferred to the bank card for debiting the home loan and car loan. However, you still have to pay a card swiping fee when swiping your card. However, this card swiping fee is much less than the cost of credit card cash withdrawals and cash advances. So you can use this method to pay off your mortgage and car loan with a credit card.

Credit card cash withdrawals generally charge a handling fee of 1% and a daily recurring interest of 0.5%. Cash advances only charge a daily recurring interest rate of 0.5%. But the handling fee for credit card swiping is only 0.6. So comparing the three, credit card is definitely the most economical.

Finally, to summarize: Credit cards can be used to pay off mortgages and car loans. You can swipe the funds out of the credit card, and then transfer them to the debit bank card for home loans and car loans. The funds will be automatically deducted on the repayment date. However, you need to bear the card swiping fee when swiping your card.

Now is a credit-based society. The better your personal credit, the faster you can handle things. In particular, a good credit card usage record will help improve personal credit, and is very helpful when applying for home loans and car loans.

It should also be noted that there is a one-time handling fee for credit card car purchases, which needs to be paid off during the first repayment. If the car buyer pays off the money in advance, the one-time handling fee will not be refunded. In addition, when repaying a car loan with a credit card, the credit status of the card holder is very important. Card holders with better personal credit scores are good for applying for home loans and car loans.

Can a credit card be used to repay a mortgage?

Credit cards cannot be used to repay a mortgage. Using credit products to repay housing loans is a kind of behavior of "using loans to support loans". To put it simply, "to support loans with loans" means to tear down the east wall to pay for the west wall. It is a lending behavior with extremely high risks and very serious consequences. This method of repaying a mortgage is not recommended.

Credit card is a credit product mainly based on non-cash transactions, and its main purpose is to consume in advance.

If the money in the credit card is withdrawn in an abnormal and legal way and then used to pay off the mortgage, it is not only an act of "using a loan to support the loan", but also an act of cashing out the credit card. The cash out of the credit card will be included in the personal bad behavior record of the credit reporting system by the bank. , in addition, you will also be punished by reducing the credit limit or permanently prohibiting the card from applying for a limit increase.

Using a credit card to repay a mortgage is not only risky and has serious consequences, but it will also be sanctioned by the bank. It is better to go to the bank to apply for a personal housing commercial loan and repay it on time.

Personal housing commercial loans are loans that Chinese residents apply for to purchase houses. Personal housing commercial loans are basically one of the main profit-making businesses of banks. Relevant bank regulations stipulate that all residents who participate in housing savings and real estate companies that provide guarantees to banks for residents' home purchase loans can obtain loan approval. Personal housing commercial loans are commercial banks and housing savings banks approved by the People's Bank of China to provide loans for urban residents to purchase ordinary houses for self-use, subject to legal loan interest rates. A personal housing commercial loan is a loan that a home buyer applies to the bank as a guarantee for repayment of the loan using a bank-approved guarantee when purchasing a house.

Personal housing commercial loans require the following materials: (1) The borrower’s ID card, temporary residence permit, household register and other materials and copies; (2) The borrower’s credit certificate, work certificate or income source certificate and other materials; (3) The mortgage asset evaluation report issued by the authoritative appraisal department and the certification materials of the ownership of the mortgage assets; (4) If there is a guarantor, the guarantor’s signed guarantee agreement and the guarantor’s credit certification materials must be issued; (5) Other documents and supporting materials required by commercial banks.

Can I use a credit card to pay off my mortgage? What should you pay attention to when paying off your mortgage?

Nearly all young people nowadays have applied for credit cards. Although credit cards are used to spend money in the future, they can solve current difficulties, so they are very popular. When money is tight and you cannot repay the mortgage, can you use a credit card to repay the mortgage? From a legal perspective, that is definitely not possible, and if the amount is too large, it will violate the law. What should you pay attention to when paying off your mortgage?

Nearly all young people nowadays have applied for credit cards. Although credit cards are used to spend money in the future, they can solve current difficulties, so they are very popular. When money is tight and you cannot repay the mortgage, can you use a credit card to repay the mortgage? From a legal perspective, that is definitely not possible, and if the amount is too large, it will violate the law. What should you pay attention to when paying off your mortgage? Before repaying a mortgage, you must pay attention to the choice of housing loan type. For example, a housing provident fund loan is very good.

Can I use a credit card to pay off my mortgage?

1. Can I pay off my mortgage with a credit card? Credit cards cannot be used as a mortgage repayment account. That is to say, credit cards cannot use the credit limit to repay through consumption, and cannot enjoy the credit card's interest-free period of up to fifty days.

2. Therefore, the so-called using a credit card to repay the mortgage loan is actually withdrawing cash from the credit card to repay the mortgage loan. Once a credit card uses the cash withdrawal service, it is the beginning of the cardholder's interest "trap": various banks charge a handling fee ranging from 0.5% to 1% for domestic cash withdrawals. In addition to the handling fee, the cardholder must pay There is also interest, calculated based on the daily interest rate of 5% and the annual interest rate of 18%. It is equivalent to borrowing another loan in addition to the mortgage.

3. Regarding whether misappropriating credit cards to pay off mortgages is considered illegal cashing out, some people in the industry said that this can only be said to be taking advantage of a legal loophole. However, the person also said that according to relevant legal provisions, malicious overdraft of more than 5,000 yuan can be sentenced to 3 years in prison.

What should you pay attention to when repaying your mortgage?

1. Note: You need to contact the bank to adjust the repayment amount. Since it is the amount agreed between the home buyer and the bank, the monthly payment will not be reduced as the central bank cuts interest rates. Therefore, the home buyer needs to agree with the lending bank again to adjust the monthly payment amount according to the new interest rate starting from the first repayment date in 2016. Otherwise, the bank will still calculate the monthly payment amount according to the original amount, so it will not be possible to enjoy the interest rate reduction in the short term. actual benefits.

Commercial loans with equal principal and interest are suitable for home buyers with stable income. In most cases, the mortgage will be equal principal and interest, because for those buyers who know little about home buying or even home loan, all they need to know is just one How much is the fixed monthly payment? Equal principal and interest means that you have a fixed amount of money to repay every month. Although the overall interest will increase, it makes it easier for the borrower to arrange income and expenditure, and saves a lot of trouble.

2. Note: The January monthly payment of equal principal and interest may increase. For commercial loans, because the lending banks and repayment methods are different, the changes in the monthly payment in January 2016 will also be different. Under the equal principal and interest repayment method, most banks will increase the monthly payment slightly in January. Specifically, while interest is decreasing, the adjusted principal paid has increased. This situation will change in February, that is, the monthly payment in February will decrease, and the monthly payment for the whole year will be based on February.

Equal-amount principal is suitable for home buyers who have relatively ample funds on hand. Because the principal of the mortgage loan is the same from beginning to end, the only difference is that the interest changes from more to less, so the monthly repayment The amount will decrease each month as time goes by. For home buyers who are in a hurry to buy a house and renovate it, the initial repayment pressure is too high and it is not a suitable choice. However, if you have ample funds on hand, it would be more cost-effective to choose equal amounts of principal and less interest.

3. Note: It is not recommended to repay equal principal amounts in advance. Under the repayment method of equal principal amounts, the borrower's interest will be slightly lower this month, and the overall monthly payment will be lower than last year. Depending on the bank, the monthly payment in January will decrease or increase. Since repayments are based on equal amounts of principal, the first thing buyers pay back is mainly interest. When the central bank is currently in the interest rate cut channel, bank loan interest rates have dropped, resulting in a relatively reduced interest repayment at this time. Therefore, in January 2016, house buyers There is no need to rush to repay the loan early.

What should you pay attention to when repaying your mortgage? Some people do not plan their monthly loan repayments in advance and end up with too much pressure. In this case, you can go to the bank to apply for adjusting the repayment amount. As long as you meet the conditions, there is basically no problem. Can I pay off my mortgage with a credit card? Some people can use credit cards to pay off their mortgages because there are loopholes in the law. This practice is not worth advocating.

That’s it for the introduction of whether it is possible to use a credit card to pay off a mortgage.