After commercial banks issue credit cards to eligible consumers, cardholders can go to specialized commercial service departments for shopping or consumption, and then the banks settle accounts with merchants and cardholders, and cardholders can overdraw within the prescribed limits.

The advantage of a credit card is that, compared with a savings card, holding a credit card can be used for credit consumption, and there is no cash in the card, only the consumption amount needs to be returned on schedule.

With the improvement of residents' income level and the change of consumption concept, more and more young white-collar workers and post-90 s youth regard borrowing consumption as a normal behavior and can enjoy a higher quality of life in advance. Seeing the huge demand in this area, banks focus on developing this business.

As a loan business, banks develop credit card business for many purposes:

First, increase the loan business to obtain interest income;

The second is to increase customer stickiness, provide more products, and attract customers to handle other financial services in banks through various means;

Third, increase contact with special merchants, establish a credit card customer database, and analyze customers' income levels and consumption preferences, so as to serve the development of other products and businesses.

According to industry estimates, credit card business is the business with the largest spread in banking business, and its spread is much higher than that of mortgage. The reason is that credit cards will charge customers interest, late fees, annual fees, handling fees, POS card fees, SMS notification fees and so on. , the comprehensive income is higher than other loan products.

Since 1985 China Bank issued the first credit card, the number of cards issued, the number of cards issued and the transaction volume in China have all achieved tremendous growth in the past 30 years. Credit card business has become the most potential department in bank retail business.

As of 20 17, according to incomplete statistics, domestic banks have issued nearly 700 million credit cards, and even three of them have entered the "100 million yuan club". The credit card business of several joint-stock banks has contributed more than 40% to the performance of branches.

Although credit cards are easy to use, they are different from savings cards. It is recommended that you pay special attention to the following aspects in daily use:

1, there is a charge for cash withdrawal.

If it is an overdraft, it is equivalent to borrowing cash directly from the bank. Generally, banks charge interest and handling fees. Even if we take the "existing money" from the credit card, the bank is interest-free, but it is still possible to charge a handling fee. In short, don't treat credit cards as savings cards.

Step 2 charge an annual fee

3, POS machine related.

Just like many Internet products are charged at the B end and free at the C end. When we use the POS machine to play with the credit card to buy goods, although the bank doesn't charge more from our account, it may get more commission from the merchants.

4. There may be related expenses such as card replacement fee and loss reporting fee.

These are details that are easily overlooked, so you need to know them in advance to avoid inconvenience.

In addition, remember to repay in time. Even if the funds are not enough at the time of repayment, you should choose to repay by installments or pay off the "minimum repayment amount". Only in this way will your credit be unaffected. Otherwise, if the repayment is not made on time, it will not only affect the credit report of the People's Bank of China, but also suffer from the "penalty interest" of the bank, and even be charged with "malicious default" and bear criminal legal responsibility.