A few taboos of credit card swiping:

Taboo 1: Frequent handling of credit card cash withdrawals, installments and other charging services

Repaying loans and repaying loans in installments according to the minimum repayment amount , credit card cash withdrawals and other services all have fees. The handling fees, interest and other fees behind them are converted into actual annual interest rates that are very high, so it is not recommended to handle such charging services frequently.

Taboo 2: Crazy credit card limit increases

For some cardholders, applying for a credit card limit increase is a pursuit. High-limit credit cards are not only convenient to use, but also allow cardholders to People feel that they have face.

But it is not a good thing to frantically pursue a credit card limit increase. A credit card limit that is too high can easily encourage cardholders to overspend. In addition, excessively high credit card limits affect applications for new cards and loans.

Taboo 3: Frequent overdraft on credit cards

Excessive overdraft mentioned here refers to spending with the card beyond the cardholder's repayment ability. Generally speaking, if there are no temporary large consumption expenditures, it is best to keep the monthly credit card consumption amount below 1/2 of the monthly income.

In this case, cardholders will have less repayment pressure. Some cardholders have poor self-control, love to spend money, often spend irrationally, and have excessive credit, which makes it difficult for them to repay their loans.

If you are not careful, it can easily lead to overdue credit card repayments.

Taboo 4: Overdue credit card repayments

Overdue credit card repayments are a big no-no. Overdue payments will first incur high interest and late fees, and most importantly, will affect personal credit records. , causing personal credit stains and affecting future mortgage loan applications.

Credit cards, also called credit cards, are credit certificates issued by commercial banks or credit card companies to consumers with qualified credit. It takes the form of a card with the issuing bank's name, validity period, number, cardholder's name and other contents printed on the front, and a magnetic stripe and signature strip on the back. Consumers holding credit cards can shop or consume at specially designated commercial service departments, and then the bank will settle the accounts with merchants and cardholders. Cardholders can overdraft within the prescribed limit.

Main features

①Credit card is one of the fastest growing financial services today. It is an electronic currency that can replace traditional cash circulation to a certain extent;

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②Credit cards have both payment and credit functions. Cardholders can use it to purchase goods or enjoy services, and can also obtain certain loans from card issuers by using credit cards;

③Credit cards are high-tech products that integrate financial services and computer technology.

④Credit cards can reduce the use of cash;

⑤Credit cards can provide settlement services, facilitate shopping and consumption, and enhance a sense of security;

⑥Credit cards can simplify collection Reduce payment procedures and save social labor;

⑦Credit cards can promote product sales and stimulate social demand.

Financial Management Strategy

1. Control the number of credit cards and only have enough.

Once there are too many credit cards, it is easy to make mistakes or forget the repayment date of the card. Issues such as the credit limit of that card are difficult to manage and can easily lead to late repayments and leave a bad record. Moreover, if you swipe multiple cards to earn points, the points will be too scattered, which is not conducive to redeeming gifts. Therefore, it is recommended that only 1 to 2 credit cards are enough.

2. Keep the credit card receipts

Most credit card holders do not care about the receipts and will not keep them. Most of them throw them away. This is a very bad habit. In fact, retaining credit card vouchers not only facilitates the monthly summary of consumption records to analyze and optimize consumption habits, but also helps improve the rationality and transparency of credit card consumption, so that the card can be swiped clearly. Moreover, many people do not set passwords on their credit cards, and carelessly discarding the credit card credentials may lead to credit card theft.

For security reasons, it is best to keep the credit card receipt after swiping the card to make yourself aware of it and develop good credit card financial management habits.

3. Reduce cash withdrawals

Credit cards have two functions: overdraft and cash withdrawal, but cash withdrawals require a certain percentage of handling fees, and even if you deposit your own money into it, you will be charged. Therefore, it is not cost-effective to use a credit card to withdraw cash or use it as a passbook.