Why do banks encourage people to use credit cards?

A large part of bank performance comes from credit cards. Recommending users to apply for credit cards can not only increase revenue, but also increase user stickiness. . Therefore, bank staff will actively recommend users to apply for a credit card. In addition, each bank employee will have a monthly quota for applying for a card. In order to achieve the quota, the workers will also actively recommend users to apply for a card.

Whether a user needs to apply for a card depends on their own needs. If there is no need to apply for a card, the user does not need to apply for a credit card. .

Before canceling the card, you need to pay off the outstanding balance, settle the annual fee, and withdraw the remaining balance. When canceling the debit card at the counter, just withdraw the balance.

Before canceling your credit card, please note that if there is an overdue record on your credit report, it is not recommended to cancel it. If you cancel at this time, the overdue records will be kept for a long time. It is recommended to maintain good repayment habits and wait until the overdue records are covered before applying for cancellation.

Different types of bank card cancellation methods are different: Debit card:

Debit card cancellation can be done by yourself or automatically by the bank. . To cancel on your own initiative, you only need to go to a bank branch with your ID card, bank card and other relevant information. In the case of automatic cancellation by the bank, you need to clear the bank card balance yourself to handle it. Generally, when there is a bank card that has not been used for a long time and has a small balance, the bank will automatically cancel the account.

Credit card:

Credit card accounts can be canceled by calling customer service or canceling at bank branches. In the case of phone cancellation, the user can call the customer service hotline of the credit card and ask customer service to help cancel the card. In the case of cancellation at the counter, the user needs to bring their ID card, credit card and other relevant information directly to the branch of the credit card issuing bank to handle the process

Process:

First of all, if the bank card is a debit card, then There is no need to cancel the card. When there is no more money in the card, the bank card will enter sleep state. After a while, the system will automatically cancel the bank card.

If you must cancel the card, you can only go to the bank counter in person to cancel it. You need to take your ID card to the place where the account was opened to cancel it. Remember, you must go to the place where the account was opened. This cannot be done in another place.

If it is a credit card, because the credit card can be overdrafted, it is best to take it to the bank to cancel it if you no longer use it, and there is no interest on the money in the credit card.

Before canceling your credit card, please note that if there is an overdue record on your credit report, it is not recommended to cancel it. If you cancel at this time, the overdue records will be kept for a long time. It is recommended to maintain good repayment habits and wait until the overdue records are covered before applying for cancellation.

Why are banks now vigorously promoting credit cards?

The reason why banks always promote credit cards is because it is related to performance.

The bank successfully promoted credit cards to customers, and when customers applied for them, their performance increased. And applying for a credit card can help increase user stickiness. Because credit cards often provide many activities, such as redeeming points for gifts, customers participate in the activities, the cooperative merchants make profits, and the bank can also obtain a certain amount of profits. And if customers recommend these activities to their friends, they will also increase their consumer base invisibly.

In addition, many people will associate their bank’s debit card with their credit card for automatic repayment. In this way, customers will continue to deposit money into their debit cards, and savings deposits are also one of the important sources of profits for banks.

Also, banks can make relatively large profits by promoting credit cards to consumers. After all, many credit cards charge annual fees, and many credit card businesses charge certain handling fees, such as cash withdrawals and installments. If the credit card is not repaid in full within the specified period, the bank will charge interest.

Consequences of an overdue credit card:

1. Liquidated damages, usually 5% of the unpaid portion of the minimum repayment amount.

2. The interest is high, and the interest is compounded. The interest rate is very scary when the debt is large.

3. Overdue credit records will be stained, resulting in the inability to handle financial needs such as house purchases and loans within the next two years.

4. If the payment is overdue for more than 3 months, and the amount exceeds RMB 10,000, and the bank has failed to pay multiple reminders, you will not only have to bear the repayment, but may also bear criminal liability.

Why do banks encourage credit cards?

A large part of bank performance comes from credit cards. Recommending users to apply for credit cards can not only increase revenue, but also increase user stickiness. Therefore, bank staff will actively recommend users to apply for a credit card. In addition, each bank employee will have a monthly quota for applying for a card. In order to achieve the quota, the workers will also actively recommend users to apply for a card.

Extended information:

Credit cards refer to various media that record cardholder account information, have bank credit lines and overdraft functions, and provide cardholders with related 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.

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 specified 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).

In most cases, citizens who have full capacity for civil conduct (citizens over 18 years old in mainland China) and have certain direct financial resources can apply for a credit card from the card issuing bank. Sometimes, legal persons can also be applicants.

Applicants for credit cards can be divided into units and individuals. Applicants should be institutions, enterprises and business units, foreign-funded enterprises and individual industrial and commercial households with independent legal person status in my country. Each unit applying for a credit card can receive a main card and multiple (5-10) supplementary cards as needed.

Individuals applying for credit cards must have a fixed occupation and a stable source of income, and provide a guarantee to the bank. The forms of guarantee include personal guarantee, unit guarantee and personal capital guarantee.

That’s it for the introduction of why banks recommend credit cards.