1. Why is it taboo to pay off your credit card in advance?

1. High handling fees

Only users who repay in full and on time can win the favor of banks. Regardless of whether it is early repayment or late repayment, in the eyes of most banks They are all breaches of contract and require liquidated damages to be paid to the bank. Of course, the previously agreed handling fee still needs to be charged, so cardholders need to pay an additional fee to the bank when they choose to repay early.

2. The credit card limit is reduced

The purpose of banks approving credit cards for cardholders is to stimulate consumption and bring more income to themselves. If they always repay their loans in advance, they will It will make banks question customers' consumption needs. Therefore, in order to avoid wasting resources, banks generally take measures to reduce the credit limit, which will have a negative impact on future credit card limit increases.

3. Affect future loan application or card application results

Whether it is a loan or a credit card, the purpose of the lending institution is to stimulate users to use it. However, if the user only uses it temporarily , and then make repayments, unable to maximize the benefits of the credit card. Then, when faced with such users submitting loan or credit card applications again, lending institutions will generally take rejection measures.

2. Credit card repayment process

(1) Credit card issuer repayment

Take Google version 92.0.4515.131 browser as an example, open the official website of China Merchants Bank Credit Card:

1. Log in to the ATM repayment homepage of the account opening bank and click on credit card repayment;

2. Fill in the credit card repayment information: follow the prompts, select the credit card issuing bank, enter the credit card number, and hold The name of the cardholder, monthly repayment date, repayment amount and contact information are confirmed;

3 Complete the payment in the transferred debit card online banking: follow the prompts and use other bank’s debit card through online banking Complete the payment;

4. The repayment is completed, the transaction is inquired, and the receipt is printed.

(2) Online repayment

As one of the main repayment methods for credit card repayments at the bank where the account is opened, online repayment has become a common repayment method for the majority of credit card users. means. Take Apple 12, ios14, and China Merchants Bank’s Mobile Life APP as examples:

1. Fill in the name of the credit card holder for the payee’s account name; fill in the “opening bank’s credit card center” for the payee’s account bank; transfer Enter the 16-digit credit card number into the payee's account; note the credit card repayment;

2. Enter the all-in-one card withdrawal password and confirm;

3. After confirmation, the system will prompt whether the transfer is Success and amount transferred.

4. Cardholders can use the "Payment Plan" function to pre-set the payment date. Online banking will transfer funds from the All-in-One Card to the cardholder's credit card in one go or on a monthly basis based on the cardholder's request. Or repayment by credit card transfer from another person designated by the cardholder.