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What is a credit card`

A credit card is a special card issued by a bank or other financial institution to those with good credit status. It is a special credit certificate. Cardholders can use the card to shop and consume at merchants designated by the card issuer, and can also deposit and withdraw cash at designated banking institutions.

1. Definition of credit card

With the development of credit card business, the types of credit cards are increasing. In summary, credit cards are generally divided into broad credit cards and narrow credit cards.

Broadly speaking, any special card that can provide the cardholder with a credit certificate and the cardholder can use the card to shop, consume or enjoy specific services can be called a credit card. Credit cards in a broad sense include credit cards, quasi-credit cards, debit cards, savings cards, cash cards (ATM cards), check cards and charge cards, etc.

In a narrow sense, foreign credit cards mainly refer to credit cards issued by banks or other financial institutions, that is, credit cards that can be used for loan consumption without pre-deposit, and are credit cards that consume first and repay later; Domestic credit cards mainly refer to credit cards, that is, quasi-credit cards (credit cards that deposit money first and then consume, and allow small, good-faith overdrafts.

The credit cards introduced on this website mainly refer to credit cards in a broad sense.

In appearance, a credit card is about the size of an ID card. It is generally made of special plastic. The front is printed with a specially designed pattern, the name and logo of the card issuer, and is printed in embossed or flat form. The card number, name of the holder, expiration date and other information; the back of the card has a magnetic strip for recording relevant information, a signature strip for the cardholder to sign, and instructions from the card issuer.

2. Characteristics of Credit Cards

Credit cards are one of the fastest growing financial services today. They are electronic currencies that can replace traditional cash flow to a certain extent;

Credit cards are also It has two functions: payment and credit. Cardholders can use it to purchase goods or enjoy services, and can also obtain certain loans from card issuers through the use of credit cards;

Credit cards are a combination of financial services and computer technology. High-tech products.

3. The role of credit cards

Credit cards can reduce the use of cash;

Credit cards can provide settlement services, facilitate shopping and consumption, and enhance security.

Credit cards can simplify payment procedures and save social labor;

Credit cards can promote product sales and stimulate social demand.

4. Benefits of using credit cards. As follows:

There is no need to carry a large amount of cash, and you can avoid the risk of carrying a large amount of cash when you go out.

You can take advantage of the benefits of "spend now, pay later". "Revolving credit" function, defer partial payment, flexible financial management

Affirmation of personal credit and identity

A widely used payment tool around the world. In more than 200 countries or regions, more than 13 million special stores accept credit cards. If you need cash, there are more than 160,000 cash machines around the world that accept credit cards.

Financial management tool: Using a credit card, you can know your personal consumption record in the monthly statement, and each card payment has a signed statement that can be kept and reconciled, so the income and expenditure are clear.

Gold Card. (Preferred Card/ Gold Card)

The main differences between Gold Card and Classic Card are the restrictions on application qualifications and the level of credit limit. Generally speaking, an ordinary card only requires an annual income of more than 220,000 yuan, while a gold card requires an annual income of more than 400,000 yuan. The credit limit granted by the bank to a gold card will be higher than that of an ordinary card.

The annual fee for a gold card is usually twice that of a regular card, but it allows you to enjoy more membership benefits, such as overseas emergency rescue, high-value travel insurance, free roadside assistance, etc., to provide cardholders with more distinguished services.

Platinum Card

It is the top credit card launched by Whiskey and MasterCard. It targets the top people in society, such as business managers, senior executives, etc. In addition to charging high annual fees, it will also provide more thoughtful additional services to high-level people who often travel abroad, such as free use of airport VIP rooms. , free car towing, high accident insurance, golf membership card discounts, etc.

Business Card, Corporate Card

A credit card specially designed for official use. The company applies to the bank to provide employees with credit card expenses when they go out for business. use. After employees use company cards to make purchases, the bills will be paid directly by the company, which can save traditional employee reimbursement and payment reimbursement procedures. The company's accounting department can make reconciliations based on the consumption list compiled by the bank every month, saving a lot of trouble, or even further obtaining quantity discounts.

Supplementary Card

The cardholder of the main credit card can apply for supplementary cards for relatives and friends, such as students and housewives who lack financial resources. The additional card and the main card share the credit limit of one credit card, and the balance will appear on the same statement. In addition, the rights and obligations of the main card and the supplementary card are basically the same. However, if the main card is reported lost, the supplementary card will not be usable. Reporting the loss of the supplementary card will not affect the main card.

Student Card

Some banks will launch credit cards for students, but since students do not yet have financial autonomy, banks will give them a lower limit, usually only two to 50,000 yuan. Students with a fixed income can also prepare separate proof of income to apply for a higher credit limit from the bank. Students can first use their student cards to establish good credit with banks. They can then increase their credit limit and become general card holders after they go out into society.

Charge Card

Charge cards are not credit cards. The biggest difference between this consumer payment tool and credit cards is that it limits consumers’ repayment methods. In terms of credit limit, debit cards are more flexible in terms of spending limits, so users are less likely to risk maxing out their credit limit. They are the best tool for cardholders who often spend large amounts of money on their cards. However, if the amount swiped by the user suddenly increases or the card holding history is too short, the card may also be rejected. In today's market, debit cards are generally considered to have more identity than credit cards and have extremely high spending power. The review standards for their card issuance are also stricter, such as Diners Club and American Express. Their initiation fees and annual fees are also usually much higher than those of credit cards. In terms of payment methods, debit cards must be paid in full within the payment period. Like credit cards, revolving credit cannot be used to defer partial payment.

Affinity Card

The functions of an Affinity Card are basically the same as a credit card, but the Affinity Card is issued by the card-issuing bank and a non-profit institution, religious group or charity. Jointly issued, it has a public welfare function. Consumers apply for this card because of their recognition of this non-profit organization, and the bank will give back a specific proportion of the cardholder's consumption to this non-profit organization, such as school recognition cards, professional baseball Approval cards and more.