When it comes to credit cards, people think of the quota. Of course, the higher the quota, the better. Incredibly, when some small partners applied for bank credit cards, they found that the quota was zero. So, what is the use of such a zero-line credit card for cardholders? Why do banks issue?

the use of zero credit card for cardholders:

1. Some bank credit cards can be exempted from handling fees for overpayment in different places, so you can deposit money in credit cards without limit first, so as to avoid being charged inter-bank fees for withdrawals with savings cards in other places.

2. Although the limit is , you can get points by swiping your credit card after depositing cash, and you will also enjoy the preferential credit card activities.

3. This is also the most significant and important point of using this zero credit card. After using the card for a period of time, it is likely that the bank will automatically increase the credit limit, so you will have a real credit card!

4. Risk of paying the annual fee. Because it is a low-balance card, many people will actually use it as a debit card, but it is still a credit card in essence. If you don't swipe it enough times, you won't be exempted from the annual fee, and owing the annual fee will affect your credit history.

the use of zero credit card for banks:

1. For the purpose of assessing the amount of cards issued, many banks may not meet the criteria for issuing cards, but in order to increase the amount of cards issued, they will issue low or zero credit cards.

2. circle customers first, and some of them may grow into quality customers.

3. Increase deposits. Credit card deposits are free of interest, not even current interest! If you meet a cardholder in Hutu, there may be an annual fee. Moreover, if the cardholder uses the credit card as a savings card, some banks will charge a handling fee for withdrawing cash from the credit card.

4. Anti-money laundering. In the past, many banks did not abide by the regulations of the CBRC on face-to-face signing, and used their ID cards and cards to charge low-balance cards at will, which hidden the risk, because the credit card account was also a settlement account, and the settlement account might be money laundering. Now more and more bank account managers will ask customers to sign credit cards in person and check the original ID cards.

5. Immature cardholders, compared with ordinary credit cards, low-balance cardholders who have obtained credit lines by swiping their savings balances have not been audited by the credit department, and there is a greater possibility of malicious overdraft of credit cards.

that's the introduction of zero credit card, which is the contradiction between the bad debt rate of credit card and the market share of credit card. For the cardholder, if you don't plan to use this card frequently, you'd better cancel it in time, otherwise the card will be useless and you will have to pay the annual bank fee for nothing.