Disadvantages of credit cards

There are 5 disadvantages of credit cards.

1. It is easy to consume blindly. Swiping a card is not like spending money one by one like paying with cash, which will lead to blind consumption and money flowing like water.

2. Excessive consumption. Laptop installment, mobile phone installment, electrical appliance installment... While enjoying your favorite items in advance, you also have to consider whether your salary will be just a drop in the bucket when you repay the loan next month

3. The interest rate is high. If you don't know how to take care of your credit card and cannot repay as scheduled when the final payment date arrives, the bank will charge higher interest, so cardholders are required to repay in full and on time, otherwise they will only have themselves to blame for the handling fees. .

4. An annual fee is required. Credit cards all have annual fees, but they also basically have annual fee-free policies. For example, some banks require that you only need to swipe the card three times a year to be exempted. Some banks have an annual fee-free policy that requires you to swipe a certain amount of money to waive the annual fee. Annual fee. On the contrary, some savings cards will also charge management fees over the course of a year if the amount of funds deposited is insufficient. So pay attention to the card in your hand and what are the conditions for annual fee exemption.

5. It is easy to be stolen. Credit cards basically require password-free swiping by default. This makes it easy for someone else to swipe your card if it is lost or stolen, causing unnecessary trouble or losses. In fact, with a credit card, you can also apply for swiping the card with a password to make purchases. It depends on how you manage the credit card.

1. If you have large consumption needs, you can apply for a credit card. For daily consumption, it is actually better to directly bind the savings card in your own name to WeChat or Alipay for quick payment. After all, credit cards are credit payment instruments, so they are consumed in advance, that is, the customer first pays with the credit limit of the credit card, and then repays within the specified repayment period.

2. In this way, the money used is not your own, which may easily lead to some customers who do not have enough self-control to spend blindly. As a result, the repayment amount is too large, and ultimately they are unable to repay on time. , thus causing overdue payment and affecting personal credit. Of course, if the customer has a reasonable concept of consumption, has a stable economic income, and has the ability to repay on time, there is no problem in applying for a credit card. After swiping the card for consumption, just remember to pay it back on time before the due repayment date (inclusive). .

3. Even if you apply for a credit card, you don’t need to apply for too many. Generally, up to three or four credit cards are enough for an individual. It is not good to have too many cards and the total credit limit is too high.

What are the disadvantages of using a credit card?

1. The service staff overuses cardholders during their consumption process, or steals their credit card information to make purchases at other merchants. This situation can happen whether it is a physical merchant or an online virtual merchant.

2. my country’s credit system is not perfect enough, and the review of bank credit and POS machine issuance is not strict. At the same time, the protection of citizens’ personal information is not enough, resulting in the intensification of credit card cash-out crimes.

3. Swiping a card is not like spending money one by one like paying cash. Once you swipe it, you will feel nothing, just a few numbers, which leads to blind consumption and money flowing like water.

4. Although there is an interest-free period for credit cards, it is only for purchases made by swiping the card. For other uses, there is no interest-free period and a handling fee will be charged.

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.

Credit cards stipulated in the relevant laws of our country ("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 with the functions of consumption payment, credit loans, transfer settlement , cash deposit and withdrawal and other full or partial functions of the electronic payment card. On December 1, 2017, the "English Translation and Writing Standards in the Public Service Field" was officially implemented, stipulating that the standard English name of credit cards is CreditCard.

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).

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

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 daily interest rate is 0.7 times 5/10,000).

What are the advantages and disadvantages of credit cards?

The advantages and disadvantages of applying for a credit card are:

Benefits of credit cards: Compared with ordinary bank savings cards, credit cards have The most convenient way to use it is to make ordinary purchases without cash in the card. In many cases, you only need to return the consumed amount on schedule. You can make overdraft purchases without depositing. It is not only safe and convenient to swipe your card when shopping, but you can also get points as gifts. You can enjoy discounts when you use the card at the bank's designated merchants.

Disadvantages of credit cards: The invention of credit cards is like a double-edged sword, which can solve the temporary economic crisis. However, the purpose of banks issuing credit cards is to make money. Once the interest-free repayment time is exceeded, high fees will be charged. The interest on the amount is generally 0.05% per day. Developing the habit of blind consumption leads to blind consumption and spending money like water.

If you cannot repay on time, the bank will charge high interest. Long-term malicious arrears will naturally affect your personal credit record and even be blacklisted by the bank.

What are the disadvantages of credit cards?

The current harm caused by credit cards mainly includes the following points:

1. It is easy for people to consume blindly. The purpose of the existence of credit cards is to alleviate our problems, not to make us overspend.

2. Overdue credit cards will produce bad records. The inability to repay after excessive consumption and long-term malicious arrears are the main reasons for bad credit records. In serious cases, you will be blacklisted by the bank's credit record.

3. The credit card may be stolen.

CreditCard is a credit certificate issued by a commercial bank or credit card company to consumers with qualified credit.

The form of a credit card is a card with the name of the card-issuing bank, validity period, number, cardholder name, etc. printed on the front. Consumers holding credit cards can go to a special commercial service department for shopping or consumption, and then The bank makes settlements with merchants and cardholders, and cardholders can overdraw within the prescribed limit.

Development History:

Credit card, also known as credit card, is a non-cash payment method and a simple credit service. Credit cards are generally plastic cards with a length of 85.60 mm, a width of 53.98 mm, and a thickness of 1 mm. They are issued to cardholders by banks or credit card companies based on the user's creditworthiness and financial resources. Cardholders do not need to pay cash when making purchases with a credit card. Make further repayments. Except for some credit cards combined with debit cards, general credit cards are different from debit cards and ATM cards in that credit cards will not directly deduct funds from the user's account.

In the 1960s, credit cards sprouted and developed rapidly in developed European and American countries such as the United States, Canada and the United Kingdom. After more than 50 years of development, credit cards have been widely accepted in more than 95 countries around the world. In the 1980s, with the reform and opening up and the development of the market economy, credit cards began to enter China as an electronic and modern consumer financial payment tool. In the past ten years, they have developed by leaps and bounds.

After experiencing the financial crisis and the ups and downs of the domestic economy, China's credit card market rebounded in 2010. By the end of 2010, the total number of domestic credit cards issued had exceeded 200 million.

In 2010, the national credit card inter-bank transaction amount reached 5.11 trillion yuan, and the consumption amount was 2.7 trillion yuan. The proportion of credit card consumption in the total retail sales of consumer goods continues to increase.

China’s credit card market is still one of the fastest-growing product lines in China’s personal financial services market. Although the economic benefits of the industry are full of challenges, driven by economies of scale and growth in consumer spending, China’s credit card market will continue to grow in the next 10 years. The average annual growth rate of credit card issuance will remain at around 14, and profitability will also tend to improve. Qianzhan.com predicts that by 2020, the cumulative number of credit cards issued in China will exceed 800 million.

What are the disadvantages of credit cards

Disadvantages of applying for a credit card:

1. Credit cards promote personal consumption and may increase unnecessary personal debt. In the past, we all used cash for consumption and would feel distressed if we took out banknotes. Since the advent of credit cards, both online and offline purchases may be made on impulse without considering one's own income capacity.

2. Relatives and friends may borrow money because you have a credit card. Sometimes if you have a credit card, it’s better to know it yourself. Don’t let your relatives and friends know, otherwise it will easily lead to a "bloody crime" of borrowing a credit card.

3. If you apply for a credit card, you may need funds later and you will cash it out and use it as a loan. Some people need to cash out their credit cards to make ends meet. Regardless of whether the cashed out money is used for legitimate purposes, it will be the beginning of increasing our own debt. Logically speaking, cashing out on credit cards is illegal. Banks may turn a blind eye because it is profitable.

4. Credit card bills are easy to forget, which affects personal credit records. Some people may forget to pay back just one credit card, let alone those who apply for multiple credit cards. The repayment date will be mixed up, and overdue credit will affect their personal credit.

Credit cards, also called credit cards, are credit certificates issued by commercial banks or credit card companies to consumers with qualified credit. Consumers holding credit cards can shop or consume at specially appointed commercial service departments, and then the bank will make settlements with merchants and cardholders. Cardholders can overdraft within the prescribed limit. Credit cards stipulated in the relevant laws of our country refer to electronic payment cards issued by commercial banks or other financial institutions that have all or part of the functions of consumer payment, credit loans, transfer settlement, cash deposits and withdrawals, etc.

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 bill date. Credit cards are divided into credit cards and quasi-credit cards. A credit card refers to a credit card in which the cardholder has a certain credit limit and can consume within the credit limit and then repay; a quasi-credit card refers to a credit card in which the cardholder can A quasi-credit card that deposits a certain amount of reserve fund and can be overdrafted within the specified credit limit when the reserve account balance is insufficient for payment. The so-called credit card generally refers to a credit card only.

Credit card is a non-cash transaction payment method. It is a simple credit service. It is issued to the cardholder by the bank or credit card company according to the user's creditworthiness and financial resources. The cardholder does not need to pay when using the credit card to make purchases. Cash, to be repaid on the settlement date. Except for some credit cards combined with debit cards, general credit cards are different from debit cards and ATM cards in that credit cards will not directly deduct funds from the user's account.

What are the disadvantages of credit cards?

In today's society, credit cards are seriously abused. If you don't use credit cards carefully, it will cause a lot of harm every minute. Let's talk about the disadvantages of credit cards.

1. It’s easy to spend blindly; when you use a credit card to shop, you can’t feel the restraint on spending money. If you feel like it, you just swipe the card. When it’s time to pay back the card, will you be in trouble if you don’t pay back? .

2. Excessive consumption; credit cards use next month's money and advance in advance, so that you can develop a mentality of not caring about whether you have enough food today or what you will be like tomorrow. Once you overdraw your credit card, you will not be able to spend as much as Your reputation is affected, and there is pressure to pay back the money.

5. It affects personal credit record. If it is overdue for a long time, I am afraid that it will be difficult to get a house loan in the future due to integrity issues, which will not be washed away in a lifetime, and there will be jail time.

Credit card is a kind of bank card, which is called a credit card in the industry. It has the function of overdraft consumption and enjoying a certain period of interest-free period.

Simply put, a credit card is a simple loan service provided by banks to customers. Customers can first swipe the card for overdraft consumption and then repay.

Credit card limit: The bank determines the limit based on the financial resources and status of the credit card applicant.

This is the end of the introduction to the disadvantages of using credit cards.