Do you know why we need a credit card?
1. Build personal credit
First of all, credit is an inexhaustible treasury. Having credit is equivalent to having wealth. However, our credit with banks and friends is not very strong from the beginning. Credit requires us to manage it and accumulate it bit by bit.
People often say to me: "I never borrow money from banks, and I never ask friends to borrow money. Does that mean my credit is very good?"
No!
Why? Because the bank does not have a historical credit record, it loses a standard to judge your credit status. He doesn’t know whether you will pay back the money you borrowed.
Some people often ask me: "Why do I have a very good relationship with my friend, but when I ask him to borrow money, the friendship seems to be gone and I don't even answer the phone." Because you have not established credit between you. For the record, he doesn’t know whether you will pay it back after borrowing the money. Good relationships do not mean good credit.
Please remember this sentence: "Credit begins with a lending relationship." To establish credit, a lending relationship must occur; a credit record is a process of borrowing and repaying.
So, how do we have a lending relationship with a bank? How to build our credit with the bank? Credit cards are the easiest and fastest way for us to build personal credit.
2. Start business in advance for later use
Every family and every individual will need funds for buying a house, decorating, running a business, etc. Whenever we need funds, we always think of borrowing money from relatives and friends. But in real life, you will find that relatives and friends can talk about anything, but talking about money is very emotional.
In fact, among all financing tools, credit card is the most convenient borrowing tool. As long as we manage our credit well, we can easily borrow tens of thousands or even hundreds of thousands of funds through credit cards.
However, many of our friends never start business in advance. They only think of applying for a credit card when they need money, and the amount applied for is very low. Some friends do not apply for credit cards because they do not know how to manage their own credit. It's been a few years since I've had the credit card, but the limit still remains the same.
So, you must manage your credit in advance and don’t wait until you need money before you apply for a credit card.
Remember, credit must be accumulated little by little. At the same time, you need to learn how to manage credit correctly, otherwise you will apply for a credit card three or five years ago, but the limit will still be the original limit.
3. Use credit to create wealth
The purpose of financing for any individual, business, or family is to invest. If you don’t invest the funds you raise and keep them at home, you will definitely lose money. money. Because financing has costs.
We all know now that if your credit record is not good, you will not be able to get a loan for buying a house or a car. Did you know that if we take a high-speed train or a plane, we don’t have the right to take it if we have bad credit?
How to protect our credit?
How can we use our credit to make money for us?
How to make our credit better and better?
There are roughly three modes of making money in this world
The first mode: making money through labor
If you work hard every day, if you earn 100,000 a year, it will last 30 years You can earn about 3 million. This is the way most poor people make money. After working hard all their lives, they still haven't created much wealth.
Second Mode: Use money to make money
If you take the 100,000 you earned in the first year and find an investment tool that generates an annual return of 20%, then 100,000 can earn approximately 23.7 million in 30 years; if you can find an investment tool with a 30% return, this 100,000 can earn approximately 260 million in 30 years. This is how most rich people make money, so that they don’t have to work for the rest of their lives and still have a steady stream of income.
The third mode: use other people’s money to make money
If you don’t have 100,000 yuan now, but you have learned how to manage your credit, you can use 100,000 yuan of credit. Create and generate 20% income every year. Then this 100,000 credits can create 23.7 million wealth in 30 years. This is how most super rich people make money.
Some people say: Credit cards are a piece of land given to us by the country. There is endless wealth in the earth. It just depends on whether you can work hard.
Some people say: A credit card is a sheep, a pig, and a cow provided by the state to the poor free of charge. Make money when you raise them? It depends on whether you know how to raise them yourself. There is a method for success and a reason for failure. Credit card is a stepping stone and the key to open the door of the bank. For those who don't know how to use it, credit card is a disaster and a card slave; for those who know how to use it, it is wealth and a card god. The scary thing is that 90% of people don't use it.
The important thing about a credit card is not the card, but the credit behind it. It is a financing thinking and a financial thinking.
In the future, one kind of thinking that families and enterprises must understand is financing thinking and financial thinking! Play with credit cards, a small card brings big wealth!
Credit Cards are: Entrepreneurs’ Firewall!
Credit card is: a backup tire for successful people!
Credit card is: a special medicine for the poor to turn around and become rich!
If you know how to use a credit card and maintain a credit card, you can increase the credit card limit to 50,000 in half a year, and to about 200,000 in a year. If you have 5 to 6 credit cards, your funds can reach millions. Use 200,000 to maintain a credit card and about 1 million to start a career, buy a car or a house, and you won’t have to pay it back for the rest of your life, and there will be no interest. Why don't you take a closer look at such a good thing?
The purpose of studying finance is to increase your financial intelligence, learn some financial management skills, learn to use credit cards, learn to get mortgage loans from banks, learn to buy houses and cars, and improve your life while creating and increasing wealth. .
For those who have never been exposed to finance, start with the basics, first learn to use credit cards, manage credit cards, and play with credit cards. On this basis, you can achieve a change in financial management thinking and gain benefits from it. Profit, gain.
From a financial perspective, if you have two credit cards with a limit of 5 million, you are worth tens of millions. Once you have a net worth, banks will automatically come to you and it will be easier to get approved for a loan.
The principle of finance: use the bank’s money as much as possible to do your own things.
Finance pays attention to closed loop, that is, within the scope of your control, if you can pay back the money to the bank every month, and the bank does not leave any bad records, it is considered a success.
Use a house to support a house, use a car to support a car. Then, these assets gradually become their own assets. Those who know how to operate it don’t have to spend any money themselves. Therefore, there are many tips on what kind of house to buy and what kind of car to buy according to your own strength, so I won’t introduce them one by one here.
Since credit cards are so important, let’s start with credit cards and play with them first.
About the author: Famous literary director, celebrity agent, senior planner, director of Henan Zenrun Cultural Research Institute, general manager of Red Sun Performance Company, and financial planner. Zeng Zhao has been engaged in financial planning for more than ten years. Helped countless "Kan slaves" transform into "Ka Gods"!
If you don’t pay attention to trends, you will be abandoned by the times; if you don’t pay attention to finance, you will be abandoned by the world, because the speed of making money will never keep up with the speed of printing money
—— Zeng Zhaohui
Can I use a credit card to get a loan? Complete knowledge about credit card loans
Nowadays, credit cards have become an indispensable means of consumption for most people. In fact, credit cards are not only used to meet daily consumption, but also Many functions can solve the financial needs of cardholders. Then card friends will ask if they can borrow money with a credit card? Today I have compiled relevant knowledge for you about credit card loans, please read on.
Bank concept of credit card loan
Credit card loan is a fund overdraft function provided by banks to cardholders. It transforms the consumer loan function of credit card into an unsecured one. A credit card transfer and borrowing business. After the credit card loan application is approved, the bank will transfer part or all of the credit card limit to the debit card, and the loan will be repaid according to the repayment period agreed with the bank, and the cardholder will pay the corresponding handling fee.
How does a credit card realize the loan function?
Each bank’s credit card loan business name will be different, but the functions they implement are the same, such as the cash installment of China Merchants Bank, China Construction Bank, and Shanghai Pudong Development Bank Universal Money, Bank of Communications Angel Loan, etc.
The threshold for credit card loans is not high. As long as the cardholder has a good credit record and no abnormalities in the account, the application can generally be successful.
To apply for this business, except for a few banks that adopt the bank's initiative invitation method, most banks implement two methods: telephone invitation and customer initiative application. Customers who are proactively invited by the bank generally receive a higher loan amount than those who proactively apply.
How much can you borrow with a credit card loan
Through credit card loans, you can apply for loans ranging from 5,000 yuan to 200,000 yuan, and no mortgage is required, as long as the credit card holder meets the requirements You can lend money if you are qualified.
Costs of credit card loans
Credit card loans are suitable for people with short-term urgent needs and are not suitable for long-term borrowing. After successfully applying for the credit card loan business, cardholders can choose a repayment cycle ranging from 3 to 36 periods according to their own needs and repayment ability. However, it should be noted that the longer the installment period, the higher the expected annualized interest rate. The monthly interest rate for 12 periods is around 10,000 yuan, which means that 10,000 yuan will generate 75 yuan in interest per month.
Reminder, if the cardholder can pay off the debt within half a year, he can choose the credit card loan business. If not, it is recommended to choose other loan methods such as bank consumer loans. Do not underestimate credit card loans. The costs add up over the long term.
Why are all car loans now provided by credit cards?
Because in this way, banks can not only complete the sales performance of credit cards but also handle loan business for customers, which is a bundled business of the bank. Of course, there is no charge for this service, and there will be no charge if the credit card is not activated. Compared with the interest on direct loans, the interest on credit card loans is lower. Moreover, this credit card issued by Bank of China is an exclusive car loan credit card.
Car loan funds are directly allocated to the credit limit of the card. This card is exclusive to the card and can only be used for car purchases. Subsequent repayments will also be repaid using this credit card. The customer will transfer the money Once it is returned to the card, the system will deduct the money on the repayment date. Once the customer has paid off the car loan, the card is generally of little use.
Not only Bank of China, but also many other banks will issue exclusive car loan credit cards to car loan users. On the one hand, this can actually increase the bank's card acceptance rate.
If the customer is applying for a credit card installment car purchase business, the batch of cards will naturally be a credit card, not a debit card. After all, the credit card limit is used to purchase the car in installments.
In fact, whether it is a car loan credit card or a Bank of China debit card, customers must remember to repay the loan on time and ensure that they do not engage in bad behavior such as overdue payments during the loan repayment period.
There are a few points to note when repaying a car loan with a credit card:
1. Credit cards cannot pay for the down payment of the car; The handling fee needs to be paid during the first repayment;
3. If the car buyer pays off the money in advance, the one-time handling fee will not be refunded.
At present, this method of loan car purchase is very popular among car buyers, but credit card repayment of car loan is very important to the credit status of the card holder. If the credit card customer is in poor condition, has overdue or arrears records, etc., this loan method will not be approved. You must hold a bank credit card for a certain period of time and have a certain credit limit.
For this kind of loan, the bank does not charge loan interest, but it has to pay a certain handling fee. The bank usually deducts the fee in one time. The amount of the handling fee is generally determined by the loan term and loan model. The handling fee charged for a one-year loan period is between 2% and 5.5%, and the handling fee for a two-year loan period is between 6.5% and 7%. Each major bank may be different, and car owners can go to the bank for consultation.
Can I get a loan with a credit card?
It is possible to get a loan with a credit card. There are two main ways for cardholders to obtain loans through credit cards:
1. Withdraw cash from ATM or counter. The amount of cash withdrawal depends on the available limit of your credit card. Usually after cash withdrawal, the interest on this part is calculated on a daily basis, usually an interest of RMB 50,000, which translates into an annualized interest rate of about 18%. And when withdrawing cash, you may need to pay a one-time additional handling fee to the bank.
2. Credit card APP borrowing function. Now basically every credit card issuing bank has launched its own exclusive credit card app. Such as the colorful life of Bank of China. There are many applications in this type of credit card app. In the application, you can often find situations where you can borrow money and borrow the credit limit from the credit card to the cardholder's savings card.
When using an app to borrow money, interest is calculated on a daily basis, usually around 50,000. In addition, you often need to pay a handling fee of around 1%.
Operating environment: iPhone11ios15.0 Bank of China V7.2.0
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1. Credit card loans refer to loans granted by banks to cardholders within a certain credit limit. The overdraft function transforms the consumer loan function of a credit card into an unsecured one. It is actually a credit card transfer loan business. After the credit card loan application is approved, the bank will transfer part or all of the credit card limit to the debit card, and the loan will be repaid according to the repayment period agreed with the bank, and the cardholder will pay the corresponding handling fee.
2. At present, the application threshold for credit card loan business is not high. As long as the cardholder’s credit status is good and there are no abnormalities in the account, he can generally apply. Most banks can provide personal credit card loans through two methods: telephone invitation and customer application. Some banks adopt the method of bank invitation. Customers actively invited by banks generally receive higher loan amounts than customers who actively apply. Through this method, you can apply for loans ranging from 5,000 yuan to 200,000 yuan. As for the amount of personal credit card loans you can borrow, it is related to the original credit limit of the credit card holder.
3. Credit card loans are simply cash installments. Cardholders directly handle the process through mobile banking, WeChat, bank apps or through customer service, and tell the customer service how much money they want and how many installments they want to repay. The bank system will show your daily card usage and credit card limit. According to the status displayed on the system , customer service will tell you how much funds you can have, and then make installment repayments.
Why does China Merchants Bank need to apply for a credit card first and then consider borrowing money?
Hello, if you want to apply for a loan at China Merchants Bank, first apply for a credit card. In this case, you can see your pre-sale credit limit, and then you can use this as a reference to infer the loan limit< /p>
Why do banks need to apply for a credit card when buying a house?
In fact, it is not necessary to apply for a credit card to apply for a home loan. The reason why some banks require borrowers to apply for a credit card is because they have Bundled consumption. By asking people who apply for mortgage loans to apply for a credit card, the number of bank credit cards issued will be increased.
When applying for a mortgage or mortgage loan at a bank, the lending bank will have a series of bundled sales activities, requiring you to apply for a credit card and open both the lending account and the repayment account with the lending bank. If you do not follow this If the application is processed, the loan will not be approved and will not enter the approval process. This is the case with ICBC and China Construction Bank. The bank has no choice but to ask you to complete the assessment. There are also some banks that convert loans to time deposit certificates and then pledge them to the bank and then lend you loans. This is an illegal method of converting loans into deposits. , what can be done, there are so many damn assessments, there are still gaps in this, help each other. The seven loan prohibitions stipulated by the China Banking Regulatory Commission are in vain. These commercial banks are doing it openly or covertly. You have to complete the assessment. It is also good for you to get a credit card. If you really don’t use the card after you get it, you can apply to cancel the account.
Mainly to complete the credit card tasks. Every bank needs to expand its business, and credit cards can bring a lot of capital flow.
Comparing the risks, capital return speed and profits of mortgage loans and credit cards, banks definitely like everyone to apply for credit cards. The same amount of 1 million yuan, if it is a mortgage, can only be given to one person. The capital return period is generally between 20 and 30 years. The base interest rate for commercial loans is 4.9%. But if you use this 1 million for credit card business, you can open cards for 100 people. The credit card will be repaid once a month, and the funds will flow back quickly. As for the profits that the credit card brings to the bank, it will be much more.
If a customer is granted a credit card when they go to the bank to apply for a mortgage, it is likely that the outlet is conducting bundled sales to increase the number of credit card issuances in order to complete business volume. In fact, in addition to credit cards, some bank outlets also sell insurance, financial management, funds and other financial products.
As for the credit card bundled with the home loan, if the customer does not want the credit card, they can refuse it directly. After all, it is a housing loan and has nothing to do with credit cards. Of course, if the customer happens to have a need to apply for a credit card, it is a good time to apply for a credit card.
As for the credit card that has been approved, if the customer has no need to use it, he can choose not to activate it (provided that the credit card is a no-activation, no-charge type); or he can directly apply to cancel the card.
This is the end of the introduction on why credit cards are used to borrow money and why bank loans are credit cards. Have you found the information you need?