Credit card:
Credit cards, also known as credit cards, are divided into RMB credit cards (quasi-credit cards) and international standard credit cards (credit cards). But people are used to calling all cards that can be overdrawn credit cards, but there are still some differences between them.
Quasi-credit card refers to a credit card in which the cardholder must first deposit a certain amount of reserve fund according to the requirements of the issuing bank, and when the amount of the reserve fund account is insufficient to pay, it can be overdrawn within the credit limit stipulated by the issuing bank. International standard credit card refers to the credit card that the issuing bank gives the cardholder a certain credit limit, and the cardholder can spend first and then repay. For the consumption overdraft within the credit limit, the cardholder can enjoy an interest-free repayment period of 25 days at the shortest and 56 days at the longest before the repayment date stipulated in the statement. If the minimum repayment amount is selected, the credit line will be restored according to the repayment amount. International standard dual-currency credit card (debit card) refers to the use in domestic special units and designated business outlets, domestic and foreign credit card organizations or international credit card companies. Settlement in RMB and designated foreign currency, with credit consumption, transfer settlement and cash deposit and withdrawal functions. Foreign currency arrears arising from using international credit cards or withdrawing foreign currency cash in consumption abroad can be repaid by purchasing foreign exchange in RMB.
Debit card:
The biggest difference between debit card and credit card is that it does not have overdraft function. Debit cards can be divided into transfer cards, special cards and stored value cards according to different functions; According to different currencies, it can be divided into RMB debit card and international debit card (dual currency).
Transfer card is a debit card for real-time deduction, which has the functions of transfer settlement, cash deposit and withdrawal and consumption; Special card is a debit card with a specific purpose and used in a specific area, which has the functions of transfer settlement and cash deposit and withdrawal; Stored value card is a wallet debit card in which the issuing bank transfers its funds to the card for storage according to the cardholder's requirements, and directly deducts money from the card during the transaction. International debit card (dual currency) can be used at home and abroad, and can be settled in RMB and USD, with functions such as consumption, transfer settlement and cash deposit and withdrawal.
Interest-free period:
For consumer transactions, the interest-free repayment period is from the bank billing date to the due repayment date. For example, Ms. Li's billing date is 1 day per month, and the due repayment date is the 25th of next month. During this period, 56 days (the longest) is an interest-free period. For another example, Ms. Li had a POS consumption transaction in May 15. Ms. Li's bill is generated on June 1, due on June 25th, and the interest-free period is from May 15 to June 25th.
Revolving credit:
Every credit card has a credit limit, which is the highest overdraft limit granted by the bank to the cardholder. With the overdraft of the card, the credit limit will be reduced accordingly; With the repayment of the arrears, the credit limit of the card will be restored accordingly. For example, the available credit line of the card is 6,543,800 yuan, and the bank allows customers to overdraw in installments within the range of 6,543,800 yuan, but the total amount shall not exceed 6,543,800 yuan; If the customer overdraws 4,000 yuan, the remaining available amount is only 6,000 yuan. If the customer pays off the debt of 4000 yuan, the credit line will be restored to 1 000 yuan.
Minimum repayment amount:
Generally speaking, if the cardholder has difficulty in fully repaying the money owed to the bank before the due repayment date, he can repay according to the minimum repayment amount stipulated by the card issuer. The calculation method of the minimum repayment amount is: the minimum repayment amount = the accumulated unpaid part of the previous minimum repayment amount+the unpaid part of this month's cash withdrawal and transfer loans+the over-limit consumer loans this month+all over-limit consumer loans × 10%. If repayment is made according to the minimum repayment amount, the card issuer will only charge the loan interest from the bank bookkeeping date to the repayment date at the daily interest rate of 0.5%, and the loan interest will be compounded monthly.
Overlimit fee:
Overlimit fee refers to the fee charged by the card issuer for customers who use the card beyond the approved credit limit. Generally speaking, the over-limit fee for international credit cards is charged at 5% of the amount exceeding the approved limit, ranging from 1 yuan RMB or 1 Hong Kong dollar or 1 US dollar to 100 500 yuan RMB or Hong Kong dollar. The credit card overrun fee is charged at 5% of the amount exceeding the approved limit, with a minimum of 1 RMB and a maximum of 500 yuan RMB.
Late payment fee:
Overdue repayment refers to the customer's failure to repay the minimum repayment amount before the end of business on the due repayment date. In addition to paying the loan interest on schedule, the bank will also charge the customer a late fee of 5% of the minimum repayment amount. What needs to be pointed out here is that some banks stipulate that if the customer fails to repay the minimum repayment amount in full for more than two consecutive times before the end of business on the due repayment date, the bank has the right to stop paying the card. The collection of late fees is basically the same as the over-limit fees.
There used to be a metaphor that China UnionPay paved a highway, and the credit card was a car flying on the road. Banks are like car manufacturers, and businesses are like toll stations. Of course, the cardholder is the owner. As we all know, safety is the first priority when driving, so try to avoid potential safety hazards and reduce traffic accidents. The same applies to the credit card in your hand.
All cardholders should know the hidden dangers of credit cards in detail. Using credit cards is not fun, so we should protect and use them carefully.