Not long ago, I received a message from a bank. The message reminded that if you successfully apply, you can get a credit card with a limit of 800 million, and if you swipe the card 3 times a year, you will be exempted from the annual payment. fee.

It seems that "80,000 yuan limit", "annual fee reduction" and "platinum privileges" are very tempting words. The highest limit of my previous credit card was only 30,000 yuan. This one The card limit has more than doubled all of a sudden, which makes me a little excited just thinking about it!

But wait, how can there be so many good things in the world?

The trick of this message is hidden in the five words "installment credit card". According to the regulations of this card, when the bill in each installment exceeds 2,000 yuan, it will be automatically divided into 12 installments, and the rate is 0.61%. In other words, as long as you spend more than 2,000 yuan, you must pay 12 installments to repay the bill, whether you are willing or not, and whether you have the ability to repay it in full.

Now you know why you can get a quota of 800 million in one fell swoop, right?

What are the pitfalls of installment credit cards?

1. Pay more installment fees

For ordinary credit cards, as long as you pay off the balance in full and on time on the repayment date, you don’t need to pay anything for this installment. cost. Generally speaking, this kind of interest-free period ranges from 30 to 50 days, which is suitable for friends who have not yet received their jobs but want to buy. But if everyone used their credit cards like this, banks would undoubtedly lose a lot of revenue. This is why you often receive messages encouraging and recommending installment credit cards.

To give a simple example, let’s take the screenshot as an example. If Little A applies for an installment credit card and incurred a bill of 10,000 yuan in consumption last month, then Little A will pay off the credit card bill. At this time, an additional expenditure of 732 yuan is required per day. If Little A’s monthly bill expenditure is 10,000 yuan for 12 months a year, then after one year, Little A will have to pay an installment fee of 8,784 yuan.

2. Cardholders are misled into applying for cards

Of course, it is undeniable that installment credit cards also have certain benefits, that is, the monthly repayment amount is reduced, and the repayment pressure becomes more difficult. Small, if users really have needs in this area and take the initiative to handle it, that is normal. The so-called demand is reasonable and the service is appropriate. But unfortunately, I have asked many people and read many news reports, and many people have completed the process. Installment credit cards don’t know what this is all about, and they think it is no different from an ordinary credit card. Many people suddenly realize it because they incur fees and exclaim that they have been deceived!

In view of this, the first thing a bank should do before recommending users to apply for an installment credit card is to inform them of the risks and differences, which is beneficial to both users and institutions. Otherwise, if the user is confused when applying for the card, and disputes arise after using it, even if the bank is not responsible, it will lose the trust of the user.

3. It can easily lead to excessive consumption.

Why do many people still apply for installment credit cards that have installment fees? Except for some users who mistakenly think it is a regular card, there are also some people who actually go there for the high limit.

Installment credit cards give high limits, and when repaying the loan, because of the automatic installment function, the cardholder will have the illusion that the bill in this period is not large: his original income cannot keep up with his consumption. level, but an installment credit card can allow you to live a more unrestrained life. If things go on like this, it will easily encourage the mentality of over-consumption. In the end, once the debt is repaid, the consequences of overdue payment will only be borne by the cardholder himself.

In short, whether it is a regular card or an installment credit card, for cardholders, understanding their rights and differences is a required course before applying for a card, and reasonable consumption is It is the only way to become a qualified cardholder.