Why issue a credit card?

Country:

1. Stimulate domestic demand and promote national economic development from the perspective of consumption;

2. Promote the rapid development of the financial industry;

Bank:

1. Effectively diversify the risks of bank loans: use small credit cards to collect customer information, establish credit files, and screen out high-quality customers.

2. Increase bank income: For banks, every deposit is a liability and must pay interest. You can only make money by lending money to a bank, and a credit card is equivalent to a small consumer loan.

Personal:

1. Use a credit card with interest-free credit, which can be used to purchase goods;

2. Create personal credit data with the bank, the better the credit. The interest will be lower when you get a later loan.

What is the reason why banks issue credit cards?

The reason is to make money

One of the major profits of credit cards is the interest income on rollover accounts. This income refers to What is.

First, merchants have to pay handling fees when cardholders make purchases.

Secondly, when cardholders make large purchases and are under repayment pressure in the near future, they propose installment payment to the bank, which means the bank will charge installment fees.

Third, the cardholder’s minimum repayment. When the cardholder does not have the ability to repay this month, he or she can repay the minimum repayment amount to the credit card, which is usually 10% of the amount owed, but this is The bank will charge interest of RMB 50,000 per day on the total amount owed by the cardholder that month, and the interest will be compounded next month! That's why credit card bills keep piling up.

Fourth, when withdrawing cash at the bank counter or ATM, the cardholder also needs to pay a handling fee.

Fifth, credit card annual fee. Cardholders need to pay the bank credit card annual fee when using a credit card. However, some banks will waive the annual fee for cardholders by swiping the card. The purpose It is to promote consumption. From these functions, we can see why banks issue credit cards

Let me give you a reference,

I have also encountered problems like yours regarding credit cards.

First of all, you must know that the bank does not need any reason to freeze your credit card,

Because you have already agreed to his unfair terms when you applied for the card and filled out the form

The bank can unconditionally stop your right to use the credit card, freeze it temporarily or permanently until it is cancelled

In the past, I also went to the bank to respond to the freeze situation

I have struggled with this matter for a long time

The answer the bank gave me was that I cashed out maliciously, or the credit card was risky

I said I guaranteed not to cash out and that I would bear any risks with the credit card.

The result is that the frozen status is still not lifted

The only definite answer given to me is (our bank has the right to directly terminate the right to use the credit card without notifying the customer)

I What can you say? After all, the card was given to you, not produced by you.

Why bank staff want you to apply for a credit card

There are four reasons.

First, issuance of credit cards is one of the main assessment indicators for banks. Banking business mainly includes intermediary businesses such as deposit taking, loan granting and fund clearing. In fact, credit cards are the carrier through which banks issue small consumer loans and operate in the form of credit. Within a certain interest-free period, cardholders can enjoy loan repayment through bank advance loans. This not only satisfies consumers' short-term demand for small funds, but also allows banks to issue loans through multiple channels and expand sources of interest. It is essentially a win-win situation. For banks, the credit card market is attractive because of its low costs and high profits. Competition in the banking industry is becoming increasingly fierce. Many banks have not only issued card issuance targets, but also current deposit and installment settlement targets.

The second is about task indicators. Business points must break down the tasks assigned by their superiors and implement them step by step to each person.

At this time, when depositors handle business, the teller will often recommend corresponding products based on the customer's situation, which is also a requirement of the service system; secondly, as a job, the teller must seize every possible opportunity to promote to the customer as soon as possible. Get the job done and avoid salary and bonus deductions.

The third is interest-related. According to the evaluation system, each branch will reward and punish its subordinate branches. In the end, their branches will reward and punish individuals and sell credit cards worth tens of yuan. This price is no different than piece rate wages on the factory floor. This is not surprising given the peculiarities of the banking industry.

Fourthly, for cardholders, there will be no economic loss regardless of whether they apply or not. People who love credit cards will definitely agree with the act of supporting teller marketing because they know the benefits that credit cards bring to them, such as emergency funds, gift rewards, discounts, and more. Although the credit card has not been activated or consumed, according to the credit card management regulations, the annual fee for ordinary credit cards is not charged. Special credit cards, credit cards with large credit limits, such as gold cards, platinum cards, etc., generally have a fixed annual fee. Regardless of whether it is activated or not, the number and amount of card swipes after activation can be exempted from the next annual fee, but the marketer will notify you in advance. You can completely reject anything you think is not suitable for you.

Many people think that credit cards have no annual fees and are interest-free, so go for it. In fact, banks make money in many ways.

Why do banks issue credit cards? Where is their main profit point in doing this?

Every bank business has its own profit driver as a prerequisite for business development, and credit cards are no exception. A major source of profit for credit cards today is interest income on rollover accounts.

The rollover amount is the balance shown on the statement that the cardholder has not fully paid off. For example, statistics from relevant authorities show that in the second quarter of last year, the number of credit cards in Xiangjiang was nearly 9 million, accounts receivable was 53.7 billion, and rollover accounts averaged 26 billion. With the current monthly interest rate of 2 Calculated, the credit card market has more than 6 billion potential interest income every year.

Extended information

Commercial banks handling bank card acquiring business shall charge settlement fees from merchants according to the following standards:

(1) Hotels, restaurants, entertainment , tourism and other industries shall not be less than 2% of the transaction amount;

(2) Other industries shall not be less than 1% of the transaction amount