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Currently, one out of every three people in my country holds a credit card. However, many people may not know much about credit cards and the traps hidden within them. So what are the pitfalls of credit cards? The editor below will explain them in detail. I hope it will be helpful to you. 1. Annual fees may be incurred if not activated. Many people think that there will be no problems as long as they don’t open the card after applying for a credit card. This is not the case. Article 49 of the "Measures for the Supervision and Administration of Credit Card Business of Commercial Banks" issued by the China Banking Regulatory Commission in 2011 stipulates that no fees may be deducted from credit cards without activation by the cardholder. However, the regulations also state that "under special circumstances, the cardholder shall authorize the deduction of fees separately in writing, customer service call recording, electronic signature, and in a manner mutually recognized by the cardholder and the card-issuing bank." 2. Cash withdrawals are not interest-free. Some people think that cash withdrawals with credit cards and consumption with credit cards are the same, and both can enjoy the interest-free period. In fact, all banks currently stipulate that credit card cash withdrawals require interest. Most credit cards are calculated at an interest rate of 0.05% per day, which translates into an annual interest rate of more than 18%. In addition, most credit cards are subject to high cash withdrawal fees, and only a few credit cards are exempt from fees. Currently, various bank credit card centers implement rate standards ranging from 0.5% to 3% for credit card cash withdrawals. The amount of cash withdrawals will also be charged an interest of 0.5% per day, which is accumulated based on the actual number of days. 3. Installment payment, interest is converted into fee collection. Currently, all banks and merchants have launched credit card installment payment services. After cardholders use their credit cards to shop in shopping malls, they agree with the bank to pay off the overdraft amount in a number of times. No overdraft interest will be charged during the payment period. But in fact, users still need to pay handling fees. Banks do not lend money to cardholders for nothing. When cardholders apply for interest-free installment repayments, banks charge a certain handling fee every month, which is generally much higher than the preferential interest rate for loans of the same grade. Assume that the installment amount is 1,200 yuan, divided into 12 installments, the handling fee is 0.6%/month, and the actual monthly deduction is 101200×0.6%=107.2 yuan. If other factors are not considered, the convertible annual interest rate is 7.2%. 4. The more you spend, the more points you get. You can earn points by swiping your credit card, and the points can be redeemed for gifts, services or even cash. In fact, not all credit card purchases can earn points, and each bank has different rules. Most banks exclude large purchases such as house purchases and car purchases from the scope of points. Hospitals, schools, financial products and services, etc. are also classified by some banks as "invalid consumption" that cannot be scored. Many credit card online purchases are not included in the calculation of points. Also, many banks’ credit card points have a fixed validity period, usually two years. 5. Use a credit card to save money, but you have to pay a fee when you take it out. Many people who have just applied for a credit card will save money into the credit card, because in this way, they will also earn points by swiping the card for consumption. But once you put money in a credit card, it’s not that easy to “get out”. Few people know that when you withdraw your own savings from a credit card, there may be a handling fee. The professional name is "overpayment" to claim the handling fee. At present, various banks charge different fees for cash withdrawals. Some charge 1%, with a minimum of 10 yuan; some charge 2.5%, with a minimum of 50 yuan. 6. Early repayment, handling fees are not exempt. After the credit card bill is installment, when you decide to repay in advance, if you pay monthly, you need to make up the handling fees for the remaining months; if you pay the handling fee all at once, you also need to pay the handling fees in one go. The handling fee will not be refunded. In other words, after the customer's application for installment payment is completed, these handling fees must be borne no matter what. Some banks also charge "cheating" early repayment fees. For this reason, before handling bill installments, you should consult clearly about matters such as early repayment. Currently, there are also bank regulations that require you to pay off the balance of the bill installment in advance, and you do not need to continue to pay handling fees in the remaining months. 7. If you make a large amount of consumption and cannot repay in full for a while, many people choose to repay the minimum payment (usually 10% of the total amount owed), which can prevent bad debts. Record generated. But when calculating interest, many people find that interest is calculated from the day of consumption, there is no interest-free period, and interest is calculated in full. The repaid portion is still calculated as the interest calculation base before the entire amount is paid off. Calculated based on an overdraft of 10,000 yuan, although 9,900 yuan has been repaid, the interest is still calculated as 10,000 yuan, and the interest is still "compounding interest".

The above is the main content of "What pitfalls will you encounter when using credit cards" and related legal knowledge introduced to you by the editor. Understanding relevant legal knowledge can help protect your own interests. We hope our article can give you some help when you are confused. If you have any questions, please go online for legal consultation.