What do novices need to pay attention to when using credit cards?

In this era of early consumption and fast consumption, almost everyone has one or more credit cards. Credit cards are actually a kind of credit service. Cardholders can use credit cards for overdraft consumption and cash withdrawals. Credit cards can bring convenience to our lives if used well, but if used improperly, they can cause unnecessary trouble. For novice credit card users, please pay attention to the following when using a credit card:

1. After receiving the credit card, the applicant must promptly sign on the back of the credit card and cover the security code of the credit card. Security codes can be used for online payments. When paying online, users only need to know the card number, validity period, and security code to make a successful payment. This shows the importance of the security code, so everyone must keep it properly.

2. Open the card and set the password. The credit card needs to be activated before it can be used. The user needs to activate the credit card after getting the card. When activating, he needs to set a password. This password is the transaction password of the credit card. Card users should not disclose it to others;

3. Remember the key dates of the credit card, including transaction date, account entry date, billing date, and repayment due date. Users need to keep in mind, especially the repayment date. After using a credit card for consumption, you must repay before the repayment date. If this period is exceeded, the user will You cannot enjoy the interest-free period service.

4. Repay the loan on time. In the process of using a credit card, you must repay the debt on time. If you are really unable to repay the debt, you can apply for installment repayment, or use the minimum repayment method to repay. If the repayment date is exceeded, the user has not repaid the minimum repayment amount. , then the bank will treat the cardholder as overdue. Overdue will affect personal credit, and bad records will be uploaded to the credit reporting system and retained in the personal credit report for 5 years. Bad records on the credit report will affect future loans for house purchases. , car buying and all aspects of life.

5. Hidden dangers of minimum repayment. If a credit card user is unable to repay the balance in full after making a large amount of consumption, they can use the minimum repayment method to repay. Usually the minimum repayment amount is 10% of the total balance, so as to avoid overdue payments, but this method Users need to pay interest, with a minimum daily repayment interest rate of 0.05%, and compound interest on a monthly basis. If the remaining debt cannot be paid off in a short period of time, the compound interest will be a considerable expense.

6. Cash withdrawal by credit card. When credit card users have small financial needs, they can use credit cards to withdraw cash. Although the operation is simple, the cost of withdrawing cash is not low. The credit card's cash withdrawal interest will be calculated from the day of withdrawal, with a daily interest rate of 0.05% and ending on the day before payment. . And cash withdrawals will also charge a certain handling fee. Usually the bank's cash withdrawal handling fee is about 3% of the withdrawal amount.