The mutual repayment of credit cards is commonly known as "using a card to support a card". This method can help you solve your immediate needs when you have difficulty in capital turnover, but it is not a long-term solution. The essence of credit card back-and-forth is cashing out on a credit card. The main method is to cash out at very low fees through POS machines and other tools, and use the money cashed out from one credit card to pay off another credit card bill.

There are two ways to repay credit cards back and forth: one is to use some method to cash out and then repay, such as using a POS machine provided by a merchant to cash out. This is also how most people cash out. Another common method is to use a credit card to withdraw cash from a bank ATM, etc., and deposit the withdrawn cash into other credit cards for normal repayment.

Be careful when using two credit cards to repay each other backwards:

1. Don’t cash out your credit cards too frequently. Cashing out by credit card itself is illegal and carries legal risks, and using an intermediary company to cash out may also leak credit card information and lead to fraud.

2. It is best to repay the money as soon as possible after withdrawing cash from your credit card. Normal cash withdrawals and repayments on credit cards will accumulate withdrawal interest and handling fees, increasing repayment costs;

3. There should be a certain interval between the repayment dates of two credit cards that repay each other to avoid overdue due to insufficient turnover. .

It is indeed feasible to repay two cards back and forth, but it is risky. On the one hand, the bank may block the card and reduce the limit, and on the other hand, you may face high interest rates. and handling fees.

Consequences of overdue credit cards

1. Overdue credit card fees. The so-called late payment fees for credit cards refer to the fees that the cardholder should pay to the card-issuing bank according to regulations when the cardholder fails to repay before the due payment date (inclusive) or the repayment amount is less than the minimum repayment amount.

2. Overdue interest. After a user uses a credit card to overdraft, there is generally an interest-free repayment period ranging from more than 20 days to more than 50 days. If the cardholder repays overdue, all the expenses of the cardholder last month will no longer enjoy the bank's interest-free payment. treatment, and the recurring daily interest rate is as high as 0.5%, that is, the annual interest rate reaches 18%.

3. Bad credit record. Overdue credit card repayment records will enter the central bank's credit reporting system to generate bad credit records. my country's personal credit reporting records have been networked nationwide. As long as individual residents have handled loan business at banks, applied for credit cards, or provided guarantees for others, they will be credited. Then you can check your credit report at any domestic commercial bank.

4. Litigation costs. If the credit card is not repaid for more than three months, the bank will ask a lawyer to issue a lawyer's letter to the user and file a lawsuit in court. The litigation costs will be borne by the cardholder.

5. Criminal liability for malicious overdraft. According to Article 196 of my country's Criminal Law and relevant judicial interpretations, malicious overdraft refers to the cardholder's behavior of overdrafting beyond the prescribed limit or within the prescribed period for the purpose of illegal possession and failing to return it after being called by the card issuer. Those who maliciously engage in credit card fraud through overdraft will be held criminally responsible for credit card fraud and be sentenced to fixed-term imprisonment of not more than 5 years or criminal detention, and a fine of not less than 20,000 yuan but not more than 200,000 yuan.