What are the benefits of credit cards? Why do some people have so many credit cards?

What are the benefits of credit cards?

The credit cards launched by major banks all have an interest-free period of 50-56 days. During this period, the cardholder will repay on the repayment date after consumption without any fees. For those who rely on monthly salary For cardholders who live a daily life, they can buy the things they like in advance (advanced consumption), or cardholders who need funds in a short period of time can use the interest-free period of the credit card to achieve their expected goals; secondly, major In order for more people to choose credit cards issued by their own banks, banks have also launched credit cards from major banks. Many preferential activities, such as refueling, car washing, car repair, shopping, entertainment and other various preferential activities, can be enjoyed by cardholders. , choosing the card type that suits you can save some living expenses.

Why do some people have so many credit cards?

When it comes to why some people have many credit cards, the first type of people have low income, high consumption, and high requirements for material life. When they were unable to repay the first credit card, they applied for a second one. Card B repays the debt owed to card A. As the amount used increases, more and more credit cards are applied for. This kind of group of people is more common, and it is also the worst phenomenon. It can easily lead to higher and higher debts.

In order to enjoy more preferential activities, the second type of people actually have many friends around them who basically apply for 4-5 credit cards in order to enjoy the preferential activities. To put it simply, they just want to make money. Will take advantage (I know a lady who holds credit cards from 15 banks in order to enjoy bank discounts).

The third type of people like to collect credit cards issued by major banks. After applying for a credit card, it will not be used or activated, just for collection. It can only be said that people have different hobbies and collections. They are not the same, there are many wonders in the world. . .

The fourth type of people need funds to start a business. They have no house, car or assets in their name. The interest rate for borrowing from financial institutions is unacceptably high. They cannot apply for a business loan at the bank but cannot be approved. However, some people need funds themselves. If you choose to apply for a credit card from a major bank, the negative value will rise sharply in this way.

To sum up: In fact, credit card is a double-edged sword. It can really help cardholders a lot when used by cardholders. However, cardholders with poor self-control ability will not be able to apply for a credit card after applying for a credit card. Indiscriminate consumption that does not conform to one's own financial capacity will only do harm to oneself. Credit cards have many advantages and disadvantages. Users who hold credit cards must use credit cards reasonably and do not overestimate their repayment ability and spend indiscriminately.

Why do some rich people like to use credit cards?

They will all apply for several credit cards, increase their credit limit, create more spare funds, and build their own credit score. Because:

Credit card is: the back road!

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!

It’s quite interesting to say that very rich people are the ones banks compete to issue credit cards to, not those who are short of money. Banks will also develop different levels of credit cards based on the customer's economic level and wealth. The common ones are regular card, gold card, platinum card and diamond card.

Are the names louder than the last? In fact, not only is the name nice, the cards are also getting better and better looking, and the diamond card is much more grand than the ordinary card. This is why some people who don’t want to apply for a credit card have a bunch of credit cards in their hands, while some people who want to apply for one can’t even apply for one.

First of all, banks feel more secure when issuing credit cards to wealthy people. Relative to income, safety is the most important. If the capital is gone, what's the use of the interest? Therefore, the most important thing for banks is to protect the principal, and the second is to earn interest.

Secondly, rich people know how to utilize resources better. Using your credit card within reason is a good thing. Rich people use credit cards rationally to save their own money and reinvest it; when rich people have no money, they will boldly overdraw their credit cards if they want to get things done, while people without money are more cautious and do not want to spend money. Tomorrow’s money, I’m afraid the burden will be too heavy.

Again, using a credit card is cost-effective and convenient.

When you use a credit card to make purchases, you can enjoy a period of interest-free period. Since you want to buy things and consume, why not make full use of it instead of spending your own money first? If you use a credit card to make big purchases and then repay the money when it is due, it is very cost-effective. Even if the money saved is kept in the bank for its lifetime, it will still earn some interest.

I also saved points and got various consumption discounts, which are actually quite affordable. It goes without saying that using a credit card is convenient. When traveling for business or travel, you only need a credit card. You don’t have to prepare a special amount of money, and you don’t have to worry about not having enough money.

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1 The times are changing. We are now entering an era of developed finance, credit consumption, and early consumption. Credit card consumption is moving from traditional cash transactions to credit transactions. This is a business efficiency and convenience Improve

2 I think that not only ordinary people but also rich people have the habit of credit card consumption, especially when life is stressful and their own cash flow is limited, they should retain cash flow turnover to the greatest extent without using it. The mode of saving your own funds and using credit cards for consumption is also a way to revitalize your cash consumption.

3 It’s just that the rich have high incomes and stable expectations for the future, all because they use external funds to solve problems to the greatest extent, and manage their own finances and preserve and increase value as much as possible. With income and liabilities, allocate credit cards for consumption. On the one hand, you can enjoy convenience and discounts, and on the other hand, you can also revitalize cash flow. Many people are also caught up in the desire to consume and fail to control credit card consumption at a reasonable level. In the end, they become card slaves. Some people turn credit cards into cash consumption and management tools to realize and even increase financial value, while some people turn credit cards into overdrafts for consumption desires.

Using a credit card well can increase a person's credit. If it is not used well and it becomes overdue, it will reduce your credit in the bank and directly affect your future loan business at the bank. Rich people like to use credit cards just to improve their bank credit. After all, they all deal with banks. And poor people don’t like loans and debt, so they don’t like to use credit cards!

The richer people are, the more likely they are to use credit cards, while the poorer people are, the less likely they are to use them. I have heard that credit cards are really scary. First of all, I would think:

1. Spend as much as you earn.

2 Credit cards also charge annual fees. Since there is an annual fee, there is no need for it.

3 If you are overdue, you will have to pay penalty interest. If you file a credit report, forget it!

However, now I feel that credit cards are:

1. Use credit assets to leverage personal leverage.

The two-year fee is nothing and can be waived.

3 Improve personal credit, money makes money.

In the past, when I went out, I had to carry a lot of cash with me, and there was a possibility of it being lost. Now, I just need to bring a card. Credit cards have changed the way we pay, whether it’s thousands, tens of thousands, or tens of thousands. If you don't wait, just swipe my card.

Benefits of using a credit card:

1 Improve personal credit

2 Redeem points for gifts

3 There is an interest-free period of 50-56 days

4 Use it first and then pay it back

5 Different credit cards enjoy different rights

At the same time, credit cards are divided into levels. The stronger the financial resources, the higher the amount you can apply for. The higher the level, the higher the benefits you will enjoy.

Credit is wealth!

This very simple principle is the credit system. What kind of society is it now? It is a credit society, not a wealthy society. Anyone who doesn't owe money is not a rich person. Let’s talk about which Jack Ma, Ma Huateng and the like don’t owe money? There are many people who don’t understand and feel that they can’t spend all the money they have. In fact, it only takes a matter of minutes. Anyone who is a senior executive in a large company should know that sometimes crises are invisible.

I digress, let’s talk about this simple thing. I use a gold card and you use a regular card. Why? status gap. To put it simply, I go to the bank and borrow 100,000 yuan directly, but you can only borrow 10,000 yuan. Why? This is an analogy. The credit system is convenient for rich people, but nothing will work for those without credit.

Many people think that if I have money, why would I use a credit card? All I can say is, how rich are you? Is it enough to spend? You can't spend all the money you can make, so the Bank of China needs to be contacted. People who don’t have access to banks don’t have much money. Ordinary people who don’t use credit cards don’t have much money. Now 1.8 million is called money, right? It's not like before.

Rich people need to be friendly with banks in order to develop, and credit cards are the easiest.

The biggest difference between rich people and people who are short of money is their different understanding of money. Rich people often collect their change and use it as capital to achieve money-making, that is, financial awareness. People who are short of money often look down on small money, thinking that they can't do anything with this small amount of money. They don't have the habit of gathering less to make more, and they don't have the awareness of financial management. And money has time value, and the richer people are, the more they understand this truth.

Therefore, there is a phenomenon of rich people taking advantage of the interest-free period of credit cards, using bank money for free to do their own things, but concentrating their change for financial management.

Of course, wealthy people are more willing to use credit cards. Perhaps they are more familiar with financial knowledge and want to use credit cards to spend money to cultivate good credit.

Cognitive problems are even more terrifying, people without money are trapped (not knowing)!

Because credit cards have an interest-free period of about one month. If you use them well, you will be a card god, but if you use them poorly, you will be a card slave.

Nowadays, more and more people like to use credit cards. What is the charm? Naturally, there are many benefits to using credit cards. I have summarized them and they have the following benefits:

1. Accumulate personal credit record: Spending more on credit cards and being able to repay in full on time can improve your personal credit history. Credit card limits and creditworthiness. With a good credit record, it will be much easier to get approved for a loan to buy a house or a car.

2. Relatively safe: By swiping your card for consumption, you can carry less cash with you to avoid losses caused by theft or loss of cash. Even if your credit card is stolen or lost, you can report the loss as soon as possible after discovering it, minimizing the loss of money.

3. Owe less favors: When you are short of funds and need cash to meet urgent needs, you will inevitably be embarrassed to ask for a loan from relatives and friends and still owe favors. At this time, an overdraft credit card is a good choice. The 60-day interest-free period is enough for you to pay back the money next month.

4. Save money: Many credit cards now cooperate with merchants for promotions. For example, discounts or cash rebates. In addition, credit card consumption points can also be redeemed for some daily necessities, or lottery activities, etc.

5. Relieve financial pressure: If you have a certain amount of pressure to repay when the consumption is large, you can use a credit card to pay in installments and enjoy your favorite products in advance. Of course, you should consume within your means in advance, and certain procedures need to be paid for installment payment.

6. Convenient financial management: You will receive a detailed consumption statement in paper or email form after the billing date. You can clearly see your monthly consumption and expenses from the bill. It is much more convenient than the cash accounting method.

7. Educate your children’s consumption awareness: You can apply for a supplementary card for your children, so that you can understand their consumption and financial status and educate them on financial management and consumption awareness.

8. Additional benefits: Some credit cards can provide additional benefits such as free car wash trailer oil delivery, accident insurance, medical insurance, airport VIP lounges, and points exchange for miles.

Of course, the existence of a credit card is a double-edged sword. While it is convenient and timely, you need to control your desires and avoid blind consumption and excessive consumption.

Why do many people now prefer to overdraw their credit cards rather than borrow money from others

I believe that when many of us are short of money, we would rather apply for a credit card from a bank, overdraft a credit card or borrow money from others. I don’t want to borrow money from relatives and friends even if I borrow money from online loans.

Borrowing money from banks or other online lending platforms requires high interest rates, but we clearly know why many people would rather pay interest to banks and online lending platforms than borrow money from relatives and friends?

Personally, I think there may be the following reasons:

1. It may be that face is a problem. People want face and trees want skin. Everyone wants to save face, especially men. If you don't want to open your mouth to borrow money and owe favors, you feel like someone is grabbing you by the pigtails, and you may not be able to get along with them in the future. Withdrawing cash by credit card is your own privacy, and no one else knows about it, and you won't feel embarrassed, let alone feel ashamed< /p>

2. Fear of affecting the relationship between relatives and friends and causing unnecessary trouble. No matter how close friends are, once they encounter financial problems, their relationship will be affected to some extent. Modern people are under great financial pressure, and it is very difficult to make money. They have to support the family, and they are afraid of not being able to pay back their friends when borrowing money, which makes them feel stressed.

I feel a little uncomfortable when the other party rejects me

What do you think?

Credit card overdrafts are becoming more and more serious. Are people's attitudes towards consumption biased, or have banks gone bad?

With the economic progress of society, it has gradually become more closely integrated with international standards. The concept of advanced consumption in Western countries has been accepted by people. It is called living in the present and enjoying the future. In fact, while advancing consumption , you are using your own credit, which is also the familiar credit rating. If your credit rating is very poor, no financial institution may be willing to lend you money in advance. If you have a certain ability to make money, at the appropriate time conditions. Preemptive consumption is okay because the money you "should" spend is saved for investment or other living expenses. This is a "money begets money" model.

Advanced consumption is A double-edged sword. Use it well to coordinate funds in life. If you use it poorly, it will be a boulder on your shoulders. Riding the bull and watching the bear believes that only rational consumption is within the scope of one's ability. "Borrowing" "Advanced credit limit, and the fact that you can borrow and repay it will allow you to enjoy the discount and not be troubled by future repayments. You can use the credit card as a financial management tool. If your cash is invested, as mentioned in the previous article , you use the card again for consumption, which is equivalent to using cash without interest, and you can also get the financial interest of your cash. Of course, you must pay back the money on time, otherwise the cost of default will be high and it will not be worthwhile.

Credit card consumption is the demand preference of some consumer groups and is also a consumption habit. With economic development and changes in the social environment, electronics have become more and more popular, and people have gradually moved away from the habit of cash payment. Just kidding, Now you have no chance to pick up money while walking on the street. This also illustrates the current situation of social development. Pre-consumption is just a derivative of the popularity of credit cards. Credit cards themselves do not take the blame. In fact, the emergence of credit cards has also alleviated the pain of some people. Due to economic pressure and temporary difficulties, what we need to guide is the consumption concept of rational use of credit cards, rather than putting the cart before the horse and promoting the concept of advanced consumption.

About why so many people overdraw their credit cards and why they have credit cards. This is the end of the introduction to overdrafts. Did you find the information you need?