Credit cards are good, but there are also many traps. Do you know the following traps?

the first big trap: interest-free installment

I believe you often see advertisements like this, which encourage you to spend by installment with zero down payment and interest-free, or, as we said before, when you have difficulty paying off your credit card bill, the bank will also advise you to pay it by installment, as long as the minimum repayment amount is enough. What's the trap here?

the bank said it was true that interest was free, but it didn't say that there would be a handling fee. Well, when you find this trap, the bank will say that the handling fee is very small, only .6% per month. Let's roughly calculate that .6% per month is equivalent to the annualized interest rate of 7.2%, which seems really not high, right?

suppose that we use 12, yuan for installment repayment. We think that the repayment amount is: 1, yuan for the first month, plus .6% interest, which is 72 yuan;

in the second month, I will pay back the principal of 1, yuan, plus .6% interest. Since I paid back 1, yuan last month, the interest multiplied by .6% for 11, yuan should be 66 yuan.

in the third month, the interest was a little less, it was 6 yuan, until the last month, the interest was only 6 yuan.

All this is just your dream, but the bank's algorithm is not like this. The bank's algorithm is to calculate the monthly interest according to the initial principal, that is, 12, yuan is divided into 12 installments, and the interest for the first month is 72, and the interest for each month thereafter is 72 yuan until the repayment ends.

in this case, the interest we actually paid is much higher than originally expected. We expected the annualized interest rate to be 7.2%, but the actual interest rate will be 12% to 15%. This is what banks call the trap of interest-free installment and low handling fee.

therefore, staging is not recommended when it is not very necessary.

the second big trap: there are charges for cash withdrawal

there are two kinds of cash withdrawal, one is overdraft cash withdrawal, that is, borrowing cash directly from the bank and withdrawing cash from the counter or ATM. There are two kinds of fees for this: interest and handling fee. The interest is generally five ten thousandths, and the annualized interest rate is 18.25%. The handling fee varies from bank to bank, ranging from .5% to 3%. The whole fee is very high, so I highly recommend that you withdraw cash by overdraft.

there's a charge for overdraft withdrawal, so I don't have to charge for withdrawing the money from my credit card myself, do I? The bank calls it overpayment cash withdrawal, and the interest is exempted, but the handling fee is still collected.

A friend of mine used to pay back 1, yuan from the credit card, but he lost an extra zero and deposited 1, yuan in the credit card. After he found out, he cashed out the extra 9, yuan at the ATM, and later found out that a 1% handling fee, that is, 9 yuan, was deducted.

Therefore, credit cards should not be used as savings cards, and any form of cash withdrawal has fees.

The third big trap: paying less money, paying penalty in full

In other words, a girl named Xiaoying went shopping in Europe with her friends, and she spent 4,622.24 yuan on overdraft. After receiving the bill, she repaid 4,6 yuan on time, ignoring the fraction of 22.24 yuan. As a result, the next bill shows the interest amount of 589.16 yuan, which is silly for her.

the credit card center said that although most of the arrears were repaid, the interest was calculated for all the arrears, accounting for five ten thousandths per day. I would like to remind you that you should not only repay on time, but also repay in full.

the fourth big trap: the credit card mall is not cheap

after you apply for a credit card, the credit card center will often send emails telling you that the credit card mall is having a special sale and can be divided into stages, but in fact, the things in the credit card mall are not cheap.

Take this Samsung N8 tablet as an example. The price of a credit card mall is 3,45 yuan, while that of Tmall Mall is less than 3,1 yuan. The difference of more than 3 yuan is the excess profit of the credit card mall.

The fifth big trap: canceling the card can't eliminate the bad record

If you forget to repay the loan on time at one time, the bank will register a bad record on your personal credit, and you will think, I will pay off the money immediately and then cancel the card, so that the bad record will disappear. I advise you, but don't do it.

generally speaking, the specific registration time of such bad records in the personal credit information system of the central bank is 2 years. If the cardholder chooses to blindly cancel the card in a short time, the credit record of his own card will be fixed forever in the 24 months before the card is cancelled.

the correct way is to continue to use the bad records for at least 24 months after they are generated, and replace the previous bad records with new good records.

The sixth big trap: the risk of swiping credit cards

Credit card swiping means that your credit card is stolen by thieves. If it is according to international practice, whoever issues the card should bear the main responsibility. But in our country, in fact, whoever holds the card will bear it, so we can only pay attention to the safety of using the card ourselves!

Well, the above is to sort out some common pitfalls in the use of credit card. I also hope that card users will pay more attention to the use of credit cards. Finally, I recommend a WeChat official account ID that can learn credit card knowledge in detail: Talking about cards and talking about cards; You can pay attention to: