Not only that, some bank employees even attract customers to apply for credit cards by calling and giving gifts. It can be said that bank employees really do everything they can to promote credit cards. According to the data released by the central bank, as of the first quarter of 2002/kloc-0, the number of credit cards issued by banks in China has reached 784 million. On average, almost one in every two people in China holds a credit card. Obviously, the credit card market in China is huge.
Generally speaking, after we use a credit card, as long as we repay before the repayment date stipulated by the bank, there will be no interest. So many people don't understand: since credit cards have no interest, why do bank employees pursue them and even send out various small gifts for this? It can be roughly divided into the following aspects.
Bank evaluation system
As we all know, banks, as financial institutions, also have an assessment system. For banks, issuing bank cards, like absorbing deposits, is regarded as the task index of banks. After the bank issues card issuance indicators to major service outlets, bank employees should complete this task.
Generally speaking, bank employees always introduce and publicize the handling of credit cards to customers in order to complete the task index of issuing credit cards by banks. It is understandable for employees to do so. After all, "handling credit cards" is also an assessment system of banks.
We might as well imagine that if the employees of the bank fail to meet the task index of handling credit cards, it is inevitable to deduct wages, bonuses and other consequences. It is understood that ordinary bank employees can get dozens of commissions if they successfully let customers apply for a credit card. Obviously, bank employees will try their best to sell credit cards to you for their own benefit.
Competition among major banks
As we all know, there are a large number of banks in China. At present, the number of banks exceeds 4,500, and the competition among banks in credit card promotion is fierce. The data shows that by 2020, the cumulative credit card circulation of several large domestic banks is: ICBC1.60 million, China Construction Bank 1.44 million, Bank of China 1.3 1.7439 million, and Agricultural Bank 1.3.
In fact, in order to seize the credit card market, banks have many ways to attract customers. It is understood that China Merchants Bank has indicated that platinum installment credit card users can enjoy the annual fee free for the first year since April/July/20 17, and those who have not opened the card are exempt from the annual fee. If the annual consumption of the main card reaches twice, you can enjoy the annual fee-free 800 yuan in the second year.
In addition, there are many types of cards that Shanghai Pudong Development Bank offers annual fee concessions. There are dozens of types of annual fee-free cards, such as VISA general card, VISA gold card and wealth gold card. It can be said that the competition among banks in the credit card market is very fierce. Some people may ask: "What do banks want to seize the credit card market for?" In fact, it is not difficult to understand that enterprises are all for "traffic", so is the Internet, and so are banks.
Overdue interest and late fees
As we all know, when we use a credit card to spend money, if we don't return it before the repayment date stipulated by the bank, it is overdue, and the bank will charge overdraft interest after it is overdue. At present, interest is charged from the day of overdraft, and the interest charged by the bank every day is five ten thousandths until it is paid off.
In addition, the bank will charge a late fee of 5% of the minimum outstanding amount, with a minimum charge of 10 yuan. Therefore, it is recommended to pay it off in one lump sum. If it is always the minimum repayment amount, that is what the bank really wants to see.
At present, there are a large number of people with credit cards in China, which leads to frequent chaos in the credit card market. In order to solve the existing bad phenomenon, this year, the relevant departments of our country clearly put forward that "the upper and lower limits of overdraft interest rate should be abolished" and "the overdraft interest rate of credit cards should be publicized".
For most people who hold credit cards, when using credit cards, they should consider whether they have the ability to repay, and they should not blindly "spend ahead". In terms of repayment, we should also repay on time before the repayment date of the bank to avoid the impact of overdue on life and establish a reasonable consumption concept, otherwise, even if the amount is higher, we will not be able to meet our spending power. Have you applied for a credit card?