Precautions:
1. Don't use "minimum repayment amount" easily
Many cardholders who are new to credit card statements don't understand why they are juxtaposed with the current arrears, and there is also a column called "minimum repayment amount". In fact, the "minimum repayment amount" is for those who can't repay the credit card in full. Once you repay the credit card according to the minimum repayment amount, you will also use the "revolving credit" of the credit card, and the bank will charge interest on all arrears from the billing date. However, on the statement, you will not see relevant tips.
For example, Article 3 of the credit card charter of a bank clearly stipulates that "when the cardholder chooses the repayment method with the minimum repayment amount or uses the card beyond the credit limit approved by the card issuer, he will no longer enjoy the interest-free repayment period, and shall pay the unpaid part with overdraft interest at the specified interest rate from the bank bookkeeping date. Cardholders who withdraw cash do not enjoy the interest-free repayment period and the minimum repayment amount, and shall pay overdraft interest at the prescribed interest rate from the date of bank bookkeeping. "
2. Always keep the credit line in mind
The more these routine items are used to, the easier it is to fall into the misunderstanding. In fact, after careful study of the above terms, you may find another point. "When you use your card beyond the credit limit approved by the card issuer", you will also not enjoy interest-free treatment. This requires us to pay attention to another project-credit line.
in the upper left corner of the credit card statement, there is usually a column to remind you how much credit limit you have. The so-called credit limit is the total amount that credit card holders are allowed to overdraw. Usually, people often have a misunderstanding that they have forgotten their credit limit. There is nothing wrong with using the credit line less. If it is accidentally exceeded, not only can it not enjoy interest-free treatment, but it will also be charged an overrun fee.
an effective suggestion is to consult the credit card service hotline when you are not sure how much credit you have left, so as not to exceed the limit!
3. Don't move the cash advance line easily
In the upper left corner of the credit card statement, immediately after the credit line, there is usually a "cash advance line" item, which means that the bank is authorized to withdraw cash from the ATM, which is generally 2 ~ 5% of the credit line and is included in the credit line.
some people may ask, does this mean that I can withdraw money from my credit card to pay for various expenses, even for investment, and also enjoy interest-free treatment?
no. Although every credit card will have a cash advance limit, it is usually considered irrational to withdraw cash from credit cards.
Because we have to face the following realities:
First, you have to pay the "cash advance fee", which is what we usually call the "cash withdrawal fee". Each bank has different regulations on this. For example, Industrial Bank stipulates that it is "3% of the amount, and the minimum 3 yuan or USD3 is charged for each transaction", which is even higher in general.
Second, advance cash does not enjoy the interest-free repayment period. From the day you withdraw money, you need to pay an annual interest rate of 18%.