What does credit card risk score mean?

Credit card risk score refers to credit card risk control, which means credit card transaction risk control. It is a system for card-issuing banks to follow up on credit card holders in real time and analyze their risk levels. Credit card risk control mainly includes credit risk, fraud risk, special merchant risk, etc. It is mainly to protect the specific interests of the card-issuing bank and monitor the card usage of cardholders. Once the risk of using the card is discovered, risk control measures will be taken, such as Block the card and freeze it. It is recommended that you take a test on the public platform of Card Review. Not only can you understand your consumption records, but you can also score your credit card usage and calculate your risk index and limit increase probability to help everyone better optimize. Personal qualifications improve the overall credit card score.

What are the risks of credit cards?

There is no risk for users to apply for a credit card. As long as you can use it normally after processing and don't do any overdue behavior, there will be no problems. However, if a credit card is overdue, the bank will report the individual's overdue record to the central bank's credit reporting system, which will stain the individual's credit and affect future loan approvals. Credit cards are actually closely linked to the central bank’s personal credit reporting system. Both the application and the user's usage will be displayed in the central bank's personal credit report. Therefore, when using a credit card, users must repay the money on time. Of course, these two aspects also need to be paid attention to:

1. Avoid blind consumption. For most users, the limit on a credit card is just a number. Therefore, when shopping, we spend money like water and buy many useless goods, resulting in waste. Therefore, users must avoid blind consumption when using credit cards.

2. Avoid excessive consumption. Since credit cards have installment functions, many consumers often use credit cards to purchase some digital products. Of course, during this process, users must avoid excessive consumption to avoid being unable to repay.

3. When using credit cards, you need to be careful not to repay overdue payments, have good repayment habits, do not blindly apply for high-level credit cards, and protect your information to avoid being stolen.

(1) Late repayment is the most taboo thing when using a credit card

Non-due repayment is the most taboo thing when using a credit card.

These credit stains have a great impact on mortgage purchases, house purchases, and car purchases. From the perspective of risk control, banks are unwilling to lend money to people with credit stains. They will think that such users will There is a risk of overdue or bad debts.

(2) Have good repayment habits

After getting a credit card, you must control your consumption desire. Do not swipe the card willfully. If you cannot pay off the loan on the repayment date, you must choose installments. . In fact, installments will generate high interest rates, and a vicious cycle will lead to more and more debt.

(3) Do not blindly apply for high-level cards

For example, the annual fee for some ordinary platinum cards has reached several thousand. You must understand it carefully before applying, because by then you will forget Paying high annual fees can also stain your credit.

(4) Protect personal information to avoid being stolen

This issue must be paid attention to, and personal information must be protected.

Once you find out that the card has been stolen, the first thing to do is to call the customer service number to tell the bank that it was not your purchase and ask the bank to suspend the credit card. The customer service will ask you to go to a nearby ATM to swipe the card and get the consumption receipt.

The second is to call the police to prove where you are, and then take this evidence to the bank's credit card department and wait for the bank's investigation.

Principles of credit card operational risks

To standardize the risk management of credit card business. Ensure the safety of bank funds. Well, bank credit card business risk management must follow a strict system and be strictly managed. Credit card business risks are divided into: operational risk, credit risk, and social risk. The credit card business management department is responsible for the risk management of the credit card business.

What are the risks if a credit card is lost?

If you lose your credit card, you must report the loss promptly. Otherwise the consequences will be serious.

1. It may be stolen.

If a credit card is lost, stolen or possessed by others, the cardholder should report the loss immediately. The risk of misappropriation after a credit card is reported lost is borne by the bank. Non-password consumption within 48 hours before the loss is reported is covered by card loss protection according to specified rules. If the card is not reported lost in time, the risk incurred will be borne by the customer himself. To report a loss, please call the credit card customer service hotline and select "2#" to be transferred to a customer service specialist.

2. Excessive expenses incurred

Lost credit card. Reporting the loss of a credit card requires a loss reporting fee, which usually costs 40-60 yuan, but can reach a maximum of 85 yuan. After reporting the loss, the risk is borne by the bank, and the cardholder does not have to worry about the card being stolen. After the credit card balance is paid off, you can apply to cancel the card and then reapply for a new card. There is no fee for canceling or applying for a new card. Some credit cards support password-free payment. If you do not report the loss in this case, the money in the bank card may be stolen or maliciously cashed out, and it may also have an impact on your personal credit report. 3. Credit cards will not be automatically canceled. If you do not report the loss, annual fees or other fees will continue to be incurred.

: 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.

1. Credit card form

The form is a card with the name of the issuing bank, validity period, number, cardholder name and other contents printed on the front, and a magnetic strip and signature strip on the back. . 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 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).

2. Classification

Credit cards are divided into credit cards and quasi-credit cards. Credit cards mean that the cardholder has a certain credit limit and can consume within the credit limit. A credit card that is repaid later; a quasi-credit card refers to a quasi-credit card in which the cardholder deposits a certain amount of reserve as required. When the reserve account balance is insufficient to pay, the quasi-credit card can be overdrawn within the specified credit limit. The so-called credit card generally refers to a credit card only.

Commercial banks implement five-level classification of credit card risks

Five-level classification of credit cards: normal, frozen, stop payment, bad debt, account cancellation, inactive

Normal , account cancellation, and inactivation are all normal and have no impact.

Freezing: If the credit card has been out of date for a long time and the situation is serious, if the credit card debt is still not paid after collection, the bank may freeze the right to use the credit card. Or if there are multiple overdue repayments in a short period of time, the bank may freeze the credit card to prevent risks.

Stop payment: It is a preventive measure taken by banks to strengthen management, ensure safety, and prevent counterfeit and lost cards from being used, as well as losses and adverse effects caused by lost bills. At the same time, it is also a measure that should be taken. The cardholder requests to stop payment of the main card or supplementary card, which is an important step in reducing the cardholder's losses and risks.

Bad debts: Loans that cannot be collected upon collection and have been in a sluggish state for a long time may become bad debts. If this status appears in the credit report, it will be extremely difficult to apply for a credit card.

Are there any risks with credit cards?

Although almost everyone has a credit card now, many people actually don’t know the risks of using credit cards. I will analyze it from the three most important points:

1. The risk of blind consumption

Swiping a card for consumption is not like using cash. Use one to go out and feel your heart bleed. Once you swipe, you don't feel anything. A few numbers, thousands or tens of thousands are just swiped out, leading to blind consumption and money flowing down the drain. When it was time to repay the loan, I regretted it too much.

Furthermore, when I put my credit card limit there, I always feel that I am so rich. The bank gave me tens of thousands of dollars, which seems like a pie falling from the sky. However, it seems like a pie, but there must be a lot of money in it. There are traps, it depends on whether you can avoid them.

2. Overdue risk

Some people in Madagascar can never remember when their repayment date is. Or you may have bound a debit card but forgot how much you spent and did not deposit enough money into the debit card.

These behaviors will lead to overdue risks. Of course, if you just forget to return it occasionally, the impact may not be big. But if you owe money maliciously, you will basically not be able to get a loan to buy a house or something. After all, in today’s Internet society, all your information is universal.

3. Risk of fraud

Credit cards basically allow password-free payment by default, and many people abroad use them this way. Therefore, when a credit card is lost or stolen, it is easy for it to be swiped, causing unnecessary trouble or losses.

In China, usage habits are different. Most people use their credit cards to make purchases using their passwords. Although a password is required, there is still a risk of credit card being stolen.

So, we must protect our personal information and credit card information. Don't lend your credit card to others, and don't sign up for random apps that you don't know what they are. There are risks.

I am chimooo, a financial expert. For more financial knowledge, please follow my WeChat public account pipilulicaiji. Let’s embark on the road to financial freedom together.

That’s it for the introduction of credit card risk classification.