Are credit cards useful?

Credit cards are useful.

Main uses of credit cards:

1. Direct consumption function. This is the most basic function of a credit card. Cardholders can use the card instead of cash to settle payments at specially designated merchants marked with the Bank of China Great Wall Credit Card logo, including stores, hotels, restaurants, airports, hospitals and other places.

2. Savings deposit function. The bank calculates the margin and reserve funds of the credit card account according to the prescribed interest rate, and treats them as savings deposits.

3. Transfer settlement function. With the card, cardholders can transfer funds from their own accounts to make payments at Bank of China's business facilities.

4. ATM cash withdrawal function. Cardholders can withdraw cash at Bank of China branches and ATM machines in the province.

5. Overdraft function. Cardholders can overdraft, withdraw cash, and use funds within the limit allowed by the card-issuing bank, and overdraft interest will be charged at the same time.

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)

Consequences of overdue credit cards

1. Liquidated damages are incurred, 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.

Closing your credit card account is something you must do if you no longer intend to use your credit card. If you do not cancel your account, the bank will charge you the annual fee for your credit card.

As long as there is no overdraft on the card, you can apply for account cancellation at any time.

If the card has not expired, you need to apply first and go to the bank to cancel the account after a certain number of days; if the card has expired and the account balance is zero, you can go directly to the designated bank outlet to cancel the account. Account procedures. When canceling an account, you should bring the original valid identity document and card. If it is inconvenient for you to go through the account cancellation procedures, someone else can do it for you. The agent must hold a power of attorney written by the principal (in person) and bring the original valid identity document to handle the account cancellation business.

If your card has not expired when canceling a credit card account, some banks stipulate that you need to go to a designated outlet to handle the card collection business, and then go through the formal account cancellation procedures after a certain period of time (up to 30 days) .

This is mainly because if the cardholder has made a manual card pressing transaction before canceling the account, the cardholder has already canceled the account before the merchant has submitted the card pressing slip to the bank for entry into the account. , so the bank cannot liquidate regularly; on the other hand, if the cardholder consumes or withdraws cash overseas, it may take a few days to liquidate. If the account is closed immediately, it will also affect the bank's normal liquidation.

What are the benefits of applying for a credit card?

Benefits of credit cards: It can relieve financial pressure; online consumption is convenient and fast; it can accumulate personal credit history. Using a credit card and paying back your loan on time can increase your credit limit.

This saves money. Many banks cooperate with merchants for their credit cards. For example, there will be cash back discounts for swiping your card, and there will be discounts for eating, watching movies, supermarket shopping, filling gas, car washes, etc. In addition, credit card points can be redeemed for some gifts in daily life, and even some lottery activities, and the points can be used as money.

Relieve financial stress. Sometimes money is needed urgently and there will be a certain amount of financial pressure to pay a large amount of money at once. If you have a credit card, you can use it to pay in installments and enjoy your favorite items in advance. The remaining money on hand can also be used for daily expenses and turnover.

Online consumption is convenient and fast.

Many online malls or Taobao stores have opened credit card payment methods, catering to consumers' preference for using credit cards for consumption. Although there are no points for credit card online purchases, its convenient and fast payment method is liked by many people.

Accumulate personal credit history. Even if there is no big turnover demand, it usually costs money. If you use more credit cards and make your payments on time, you can increase your credit limit and credit rating. You will have a good credit record in the personal credit database of the People's Bank of China, and it will be much easier to get approval for a loan to buy a house or a car in the future.

What is a credit card and how to use it

Credit cards are also called credit cards and are mainly used for overdraft consumption. After the user applies for a credit card, the bank will give you a certain limit. The user can make overdraft purchases within the limit. After overdrafting the credit card, the user needs to repay, which is a way of spending first and repaying later.

Bank cards refer to credit payment instruments issued to the public by approved commercial banks (including postal financial institutions) with all or part of the functions of consumer credit, transfer settlement, cash deposits and withdrawals, etc. Bank cards reduce the circulation of cash and checks, allowing banking business to break through the limitations of time and space and undergo fundamental changes. The application of the bank card automatic settlement system has made the dream of a "checkless, cashless society" a reality.

Applying for a bank card

The process of applying for a credit card and a debit card is different.

When applying for a credit card, you need to bring your valid documents (ID card or copy of ID card or household registration book or copy of household registration book), proof of residence, proof of unit income or proof of personal assets and other materials to the card issuer. To apply, you need to fill in the application form, and the information filled in must be true. After filling out the application form, it must be filed with the head office of the account opening bank. After the head office of the account opening bank reviews the application materials, it will take about 20 working days before the card can be issued to the customer. Credit cards are only available to customers who are 18 years of age or older. Minors are not allowed to apply for credit cards.

Applying for a debit card is relatively simple. You only need to bring your valid documents (ID card or household registration book) and fill out the application form at the bank where the account is opened. The card can be issued to the applicant at that time. There is no age limit for debit card application, and minors can also apply. When customers under the age of 16 apply for a debit card, their guardian must hold the account book (if they are not in the same account book, relevant certificates must be provided) to the bank branch counter to apply for it. The person being processed does not need to be present; if the customer is over 16 years old, If minors under the age of 18 are already working, they can go to the bank counter with their work certificate and ID card to apply for a debit card on their own. If they are not working, they still need the assistance of their guardians, and the person being processed does not need to be present; Applicants who are 18 years old or above can directly go to the counter of a bank branch or a self-service card application machine with their ID card to apply for a debit card, and get it immediately. According to national regulations, debit cards issued by minors do not have online banking functions and cannot be bound to mobile payment software.

Report the loss of a bank card

The procedures for reporting the loss of a bank card are not exactly the same among major banks. If you lose your bank card, you can first use the phone or online banking to temporarily report the loss, and then bring your ID card and other proof. Report the loss of materials at the bank counter.

What is a credit card used for?

Credit cards are also called credit cards and are mainly used for overdraft consumption. After the user applies for a credit card, the bank will give you a certain limit. The user can make overdraft purchases within the limit. After overdrafting the credit card, the user needs to repay, which is a way of spending first and repaying later.

Credit cards are divided into regular card, gold card, platinum card and other levels. The limit of regular card is generally within 10,000 yuan, the limit of gold card is within 10,000-50,000 yuan, and the limit of platinum card is within 10,000 yuan. Above 50,000.

A credit card refers to an electronic payment card issued by a commercial bank or other financial institution that has all or part of the functions of consumer payment, credit loan, transfer settlement, cash deposit and withdrawal, etc. On December 1, 2017, the "English Translation and Writing Standards in the Public Service Field" was officially implemented, stipulating that the standard English name of credit cards is CreditCard.

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).

Credit cards are issued by commercial banks to individuals and organizations. They can use them to shop and consume with specially appointed organizations and deposit and withdraw cash from banks. They are special carrier cards with consumer credit. They are in the form of a card with the card issuing number printed on the front. Cards with bank name, validity period, number, cardholder name, etc., and a magnetic stripe and signature strip on the back.

A real credit card has the following characteristics: it is not encouraged to deposit cash in advance, consume first and repay later, enjoys an interest-free payment period, can repay in installments independently (with a minimum repayment amount), join VISA, MASTER Wait for international credit card organizations to make it universally applicable.

From 0:00 on August 29, 2019, when using the credit card repayment function, an additional 0.1% of the actual repayment amount will be charged as a handling fee for each credit card repayment. When the time comes, the repayment amount and handling fee will be paid together.

JD Finance has also made adjustments to the credit card repayment service rules: starting from September 1, the same user can enjoy a free repayment limit of up to 10,000 yuan per month, exceeding the maximum free repayment limit. A service fee of 0.15% will be charged.

What is a credit card used for?

A credit card is a credit payment instrument with a certain overdraft limit issued to the card holder based on his credit status. It has an overdraft function. People must first use the approved credit limit and then repay it.

That’s it for the introduction of what credit cards can do.