"Trap" 1: No annual fee for applying for a card

The gimmick of "no annual fee for applying for a card" has been around for a long time. In order to encourage consumers to apply for cards, in addition to giving out some small gifts, the card center will also say "no annual fee" to make you think that the card costs zero. In fact, not all credit cards come with no annual fees for life. The so-called "no annual fee for card application" generally only applies to ordinary cards and gold cards. There is no annual fee in the first year of card application. Whether annual fees will be charged in subsequent years depends on the cardholder's use of the card.

Countermeasures: In July 2009, the China Banking Regulatory Commission issued a notice on further regulating the credit card business, which explicitly prohibited the issue of "charging annual fees without opening a card". However, the card center stated that if a cardholder opens a card the year after application and does not meet the credit card swiping standards in the first year, he or she will still need to pay the annual fee after opening the card. Therefore, it is most important to treat your credit card application carefully.

"Trap" 2: The minimum repayment does not affect credit

Repaying the minimum repayment before the final repayment date will indeed not affect credit, but the interest on the debt may Not a small amount. Except for ICBC credit cards, most banks use the full penalty interest method to calculate interest, that is, interest will be calculated from the day the cardholder makes a purchase, and interest will be calculated at 0.5% per day until it is paid off.

Countermeasures: When swiping credit cards for consumption, you should measure your repayment ability. For situations where you may forget to repay, it is recommended that cardholders write the final repayment date on the back of the card and set up a repayment reminder service through the online repayment platform. If you cannot repay the loan in full within a short period of time, you may wish to consider repaying it in installments.

"Trap" 3: Interest-free installment repayment

Interest-free installment repayment is also a special service of the card center. However, the interest can be waived, but the handling fee cannot be waived. In addition to directly applying for installment consumption at the cooperative merchants of the card center, cardholders can generally make installment payments for a single large-amount consumption or bill. Banks such as ICBC, Bank of China, and China Merchants Bank will calculate the first installment bill based on the number of installments. A certain percentage of handling fees will be charged one time, while China Construction Bank, Bank of Communications, Shanghai Pudong Development Bank, Guangdong Development Bank, China Everbright, etc. will charge handling fees in proportional installments. Although different banks have different handling rates based on the number of installments, they are not actually cheap.

Countermeasures: It is important to measure spending power. At the same time, cardholders should have a correct estimate of the handling fee cost before choosing to repay in installments. Of course, for cardholders who are unable to pay off their balance in full within a short period of time, the cost of installment repayment is far lower than the interest accrued after repaying the minimum repayment amount. Therefore, in special circumstances, it is a saving grace. money practices.

"Trap" 4: Cash advance is convenient for emergencies

Card holders all know that credit card overdrafts incur existing handling fees and interest costs. In fact, the two are just the same. medicine. After the cardholder applies for a cash advance, he also needs to pay a handling fee. At the same time, the interest rate is also charged at 0.5% per day until the cardholder pays it off. Compared with traditional overdraft cash withdrawals, cash advances are just a little more formal.

Countermeasures: This service is only suitable for cardholders to use in emergencies. After borrowing cash in advance, cardholders should repay as soon as possible because interest increases every day.

"Trap" 5: You can still use the card over the limit

Some credit cards can indeed exceed the limit when used, but you should not be too happy too early. There are costs for exceeding the limit - exceeding the limit. Limited fee.

The standard of some banks is that cardholders who exceed the limit of consumption only need to return the excess amount before the statement date, and they will not be charged over-limit fees. Some banks have stricter standards. Once the cardholder exceeds the limit of consumption, a certain over-limit fee will be charged. At the same time, the bill will enter the "arrears" status, so that each consumption in the bill will be charged 10,000 points from the day of consumption. Five-fifths of the interest until the entire amount is repaid.

Countermeasures: Most of the holidays are more likely to cause over-limit consumption, so it is recommended that cardholders apply for a temporary limit 2 to 3 days in advance. In addition, it is recommended that cardholders activate the credit card SMS reminder service to know the remaining available credit limit of the card in a timely manner.

"Trap" 6: The suspicion of "interest-free and handling fee-free"

The birth of the credit card mall has built a virtual trading platform for cardholders.

Here, you can select items based on product descriptions, warranty instructions, disclaimers, etc., and at the same time, choose a payment method within the scope allowed by the card center, such as one-time payment or installment purchase. However, after careful comparison, you will find that the prices of goods in the credit card mall are not more favorable than the market price, and are even much higher than the market price. Therefore, the card center shouts the slogan "0 interest, 0 handling fee" to attract consumers, but the price of the goods is These costs are already included in the card and may not be really cost-effective for cardholders.

Countermeasures: Before shopping in a credit card mall, you should do your homework and compare the market price with the mall price, which is higher. It should be pointed out that although the prices in the mall may not be low, if the cardholder needs to apply for installment repayment after shopping through other channels, the installment cost should be added when comparing prices. In this way, the price in the credit card mall may be more favorable.