When I was chatting with a friend recently, he told me that his credit card was overdue. During the conversation, he gritted his teeth and said that it was all because of the credit card. If it weren't for the credit cards in his hand, he wouldn't be able to do it. Come this far. His complaints made me feel pitiful and hateful. I have been using credit cards for more than ten years. I tried to persuade but I didn’t know where to start. When I summarized the credit cards myself, I found that the problem lies with the people. It has nothing to do with credit cards. I hope this article of mine will make him face up to his problems and get out of the debt quagmire as soon as possible.
1. What is a credit card?
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 issuing bank's name, validity period, number, cardholder's name and other contents printed on the front, and a magnetic stripe and signature strip on the back. Consumers holding credit cards can shop or consume at specially designated commercial service departments, and then the bank will settle the accounts with merchants and cardholders. Cardholders can overdraft within the prescribed limit.
2. Why apply for a credit card?
(1) Give yourself a tool for capital turnover
Applying for a credit card can provide yourself with an opportunity for capital turnover. , in today's society, few people are willing to let you use money without interest, so with a credit card, you can have a turnover when you don't have enough funds and you have to use money.
(2) Accumulate good personal credit
If a person does not have a mortgage, car loan or other loans, applying for a credit card is a way to show the bank that he has good credit. Having money does not mean you have good credit. After you have a credit card, you can use it every month and pay it back on time when it is due, which can prove to the bank that you are a citizen with good credit.
(3) Shearing wool
Everyone should have heard of the wool party. With a credit card, we don’t expect to use credit cards to become a professional wool party, but many credit cards are used in certain consumption scenarios. There are discounts below, and certain consumption scenarios are often encountered in our lives. Of course, we must take advantage of the small discounts in front of us. If we use them well, it will not be a problem to have three to two thousand yuan left a year.
3. What kind of person is suitable for applying for a credit card?
Having mentioned so many benefits of applying for a credit card, please don’t think that I want to advise everyone to apply for a credit card. Some people have strong self-control. , has a relatively keen understanding of money and spends money in moderation, then he is relatively suitable for applying for a credit card (not absolutely), but some spendthrifts are really not suitable for applying for a credit card.
When you swipe a credit card, you will have the illusion that what you are spending is not money. When you swipe the card to make a purchase, you feel happy and don’t feel bad at all. When it comes time to pay back the money, you look at the bill and want to ask yourself. If you don’t spend it yourself, I advise you not to apply for a credit card.
In addition to the illusion caused by credit cards when swiping the card, there are many pitfalls in the use of credit cards. According to normal thinking and logic, these pitfalls are unimaginable. People who are confused all day long are not suitable for applying for credit cards. A person who accidentally forgets to repay even a small amount of tens of dollars will have an impact on his credit report, and the gain outweighs the loss.