The biggest risk is credit risk. The other party may have overdue payment, cash withdrawal and other behaviors, which will affect your credit and be detrimental to your future life. So this is not recommended.
First, the use of credit cards is taboo.
(1) The credit card is overdrawn, which exceeds the repayment ability of the cardholder.
(2) The crazy withdrawal of credit cards leads to blind consumption, which is easy to form the psychology of comparison. Frequently
(three) handling credit card cash withdrawal, installment and other charging services, resulting in additional handling fees, interest, etc.
(4) Overdue repayment of credit cards will generate high interest and late fees, which will affect personal credit records and make it impossible to handle mortgage and other businesses in the future.
Second, the benefits of using credit cards.
(1) When handling credit cards, users can enjoy many preferential policies brought by credit cards, and there are also corresponding preferential policies for spending credit cards in major stores.
(2) It avoids carrying a large amount of cash out of the house, which is very convenient and quick, and will not be dangerous because of carrying a large amount of cash.
(3) You can enjoy spending first and then repaying, which indirectly and temporarily solves the financial difficulties of cardholders.
Third, the disadvantages of credit cards.
(1) It gives people a sense of virtuality and enjoyment, which leads people to be less cautious when using credit cards than when using cash, resulting in some blind consumption of money like running water.
(2) Causing a vicious circle, even robbing Peter to pay Paul, and ultimately affecting personal credit records.
(3) Paying off debts before the repayment date requires paying a high amount of late fees and bank interest, which has caused many people a lot of bad phenomena.
4. What will happen if the credit card is overdue?
(1) If the credit card is overdue, it will generate high interest and late fees. If not, the cardholder will no longer enjoy the interest-free period of the credit card. Interest is calculated from the date of consumption, with daily interest of 0.5% and monthly compound interest.
(2) Personal credit stain will be affected. With credit stain, the loan amount of mortgage is less than others, and the interest rate is higher than others. If the overdue period is serious, even if you want to pay more interest, the bank will not give the loan.
(3) If the credit card holder recovers the debt and the bank still fails to repay the credit card debt, the bank may apply for auctioning other fixed assets under the cardholder's name.
(4) Malicious arrears will be sentenced and bear criminal responsibility.