What is the essence of a credit card?

The essence of a credit card is the short-term credit line granted by commercial banks to individual customers. Individual customers can draw credit limits within the limit, and must settle the minimum repayment limit within the specified period, otherwise it will affect the personal credit record. For consumer credit cards from general commercial banks, the longest interest-free repayment period is 51 days, and the minimum repayment amount is 10%. To put it simply, if you use a limit of 1,000 yuan, you must repay it before the bill date of the next month. 1,000 yuan is interest-free. If you cannot repay in full, you must repay 100 yuan, and interest will be calculated on the remaining balance on a daily basis, otherwise the credit card will be deemed overdue.

What is a credit card?

A credit card refers to an electronic credit card issued by a commercial bank or other financial institution that has all or part of the functions of consumer payment, credit loan, transfer settlement, cash deposit and withdrawal, etc. Payment card. Credit card is a non-cash transaction payment method and a simple credit service; consumers with credit cards can go to a special commercial service department to shop or consume, and then the bank will settle the payment with the merchant and cardholder. The cardholder can Overdraft within the prescribed limit. Credit card refers to the credit payment instrument issued by the People's Republic of China and various commercial banks within the country (including foreign-funded banks and Sino-foreign joint venture banks, hereinafter referred to as commercial banks) to individuals and entities.

Legal Basis

In Article 3 of the "Credit Card Business Management Measures", the term "credit card" as mentioned in these Measures refers to the People's Republic of China and all commercial banks in the country (including foreign-funded banks, Chinese and foreign banks). Credit payment instruments issued by joint venture banks (hereinafter referred to as commercial banks) to individuals and entities. Credit cards have functions such as transfer settlement, cash deposits and withdrawals, and consumer credit.

What are the uses and functions of credit cards?

Purpose: Payment and settlement, convenient for cardholders to carry out shopping and consumption activities; Remittance and transfer: Cardholders can transfer money to other places and overseas through remittance. ; Personal credit: Cardholders can accumulate personal credit in financial institutions through credit cards; Credit sales: According to each person's credit record and basic situation, there will be different credit card limits, which can lead to consumption and expand total social demand; Revolving credit: With As the credit card usage time continues to extend, the cardholder's credit level will continue to improve; shopping consumption: the cardholder can use the card to make purchases at commercial institutions or outlets that authorize the credit card; cash withdrawal: cash withdrawal is an auxiliary use of the credit card; installment payment : Accumulate credit through revolving credit and realize installment purchases; Microcredit: Cardholders can use microcredit.

1. The role of credit card: It facilitates people's lives, saves the trouble of carrying cash, and has no geographical restrictions on the use of credit cards. In China, no matter where you swipe your card, as long as it has the UnionPay logo, you can swipe it without charging a handling fee; you can participate in various preferential and discount activities cooperated by merchants and banks; the points earned by swiping the card can be exchanged for gifts; you can repay the card in a timely manner after swiping the card, and your personal bank reputation get improved. Shopping consumption consumption function is used to purchase goods. When the cardholder's payment for goods and services exceeds the balance of his or her credit card account during shopping and consumption, the card-issuing bank allows the cardholder to make a short-term overdraft within the specified limit. Essentially, this is consumer credit provided by banks issuing credit cards to customers.

2. Transfer settlement Transfer settlement, also known as "non-cash settlement" and "transfer settlement", refers to the receipt and payment of funds for currency transactions between companies. Instead of a cash settlement, the payment is transferred from the payer's account to the payee's account through the bank. It is mainly used for the collection and payment of goods transactions, labor supply, fund transfer, etc. between enterprises. Transfer settlement is a form of monetary settlement. It can be divided into urban settlements and non-native settlements. Its characteristics are: based on bank credit, with deposit accounts as conditions, and using bank credit revenue and expenditure instead of cash flow. Savings Savings are a savings activity in which urban and rural residents deposit temporarily unused or surplus monetary income in banks or other financial institutions. Also called savings deposit. Savings deposits are an important source of funding for credit institutions. Savings Put deposits or things that you won’t need in a bank for a while.

3. Microfinance is not only a part of the financial industry, but also a development tool. Microfinance includes financial services and social services. It meets the financial and social needs of households and businesses that have never or rarely received formal financial services. Therefore, the main target customers of microfinance institutions are low- and middle-income households and microenterprises. Installment payment Installment payment is mostly used for product transactions with long production cycles and high costs.

Such as exporting complete sets of equipment, large vehicles, heavy machinery and equipment, etc. The installment payment method is that after the import and export contract is signed, the importer will first pay a small part of the payment deposit to the exporting country.

What is a credit card?

Credit cards and debit cards are rectangular bank cards.

Credit card is a payment method that does not require the use of cash transactions. After applying for a credit card from the bank, you can spend it directly without paying the fees yourself. It is a short-term loan that needs to be repaid later.

If you don’t have ++++ for the time being, using a credit card can increase your flexibility of funds, and there are many marketing agencies that allow you to enjoy various discounts brought by credit cards. Frequent use of credit cards for consumption can also improve your credit score, but remember to make timely repayments. A stable repayment record will allow the bank to list you as a high-quality customer.

If you have one in the future Those who need a mortgage or car loan will be more easily approved. When using a credit card, monthly consumption records will be recorded flexibly, allowing you to have a clearer picture of your consumption.

What is the nature of a credit card? Looking for an accurate answer~~

A credit card is essentially a credit payment tool - a credit card, which means you can overdraw, consume first, and repay later

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First, a credit card, also called a credit card, is a credit certificate issued by a commercial bank or credit card company to consumers with qualified credit. It takes the form of a card with the name of the issuing bank, validity period, number, cardholder name and other contents printed on the front, and a magnetic stripe and signature strip on the back.

Second, consumers with credit cards can shop or consume at special commercial service departments, and then the bank will settle the accounts with the merchants and cardholders. Cardholders can overdraft within the prescribed limit. Credit cards stipulated in my country's relevant laws ("Interpretations of the Standing Committee of the National People's Congress on Relevant Credit Card Regulations") refer to credit cards issued by commercial banks or other financial institutions that have all the functions of consumer payment, credit loans, transfer settlement, cash deposits and withdrawals, etc. Or an electronic payment card with partial functions.

Third, on December 1, 2017, the "English Translation and Writing Standards for Public Service Fields" was officially implemented, stipulating that the standard English name for credit cards is CreditCard, and credit card consumption is a non-cash transaction payment method. , there is no need to pay cash when consumption, and repayment will be made on the billing date (BillingDate).

Fourth, credit cards are divided into credit cards and quasi-credit cards. Credit cards refer to credit cards where the cardholder has a certain credit limit and can consume within the credit limit and then repay; quasi-credit cards A debit card refers to a quasi-credit card in which the cardholder deposits a certain amount of reserve as required. When the reserve account balance is insufficient to pay, the card can be overdrawn within the specified credit limit. The so-called credit card generally refers to a credit card only.

5. Starting from January 1, 2021, the credit card overdraft interest rate will be determined independently by the card issuer and the cardholder through independent negotiation, and the upper and lower limit management of credit card overdraft interest rates will be cancelled. (The original upper limit was 0.5% of the daily interest rate, The lower limit is 0.7 times the daily interest rate of 0.5%).

Sixth, on May 25, 2021, the Supreme People's Promulgation and Implementation of the "Supreme People's Provisions on Several Issues Concerning the Trial of Bank Card Civil Cases"

Credit Card Commercial Let’s stop here for the essential introduction.