What is a credit card? How to use it?

1. Credit card, also called credit card, is a credit certificate issued by a commercial bank or credit card company to consumers with qualified credit.

It is in the form of a card with the issuing bank name, validity period, number, cardholder 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 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.

2. Reasonable use of credit cards:

1. We must make full use of the interest-free period of credit cards.

Credit cards from different banks have different interest-free periods, but they are basically more than 30 days, and some banks can even reach more than 50 days. If we can repay the credit card in full before the due date, this basically means that we enjoy an interest-free period of 30 to 50 days in advance. For those who can use credit cards flexibly, we can completely regard this period of time as our stable cash flow.

2. It is best not to use installment payments and minimum repayments, and do not actively withdraw cash.

Some people cannot repay the credit card in full before the repayment date, so they use installment payments and minimum repayments. These two methods seem to be able to alleviate a person's financial problems, but they have very high annualized comprehensive interest. Generally speaking, the annualized comprehensive interest rate of a credit card can reach about 18, which is already very high. At the same time, active credit card withdrawals will also incur high interest charges.

3. We can participate in credit card points activities.

Each bank's credit card will basically launch corresponding points activities. When we use corresponding consumption behaviors, we can obtain the corresponding points amount. After we accumulate a certain level of points, we can use the points to exchange for items of equal value. I suggest friends to pay more attention to the points activity of their credit cards. This is also a process of gathering less and making more.

What is a credit card used for?

Credit cards have long been a part of our daily economic life, so what are credit cards used for and what is the difference between them and ordinary bank cards?

1. What is a credit card?

Credit card is a non-cash payment method and a credit service provided by the banking industry. It is issued to the cardholder by the bank or credit card company based on the user's creditworthiness and financial resources. The cardholder does not need to pay cash when using the credit card and will repay the bill on the bill 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.

2. What is the difference between a credit card and a general bank card?

1. Credit cards can be used for overdraft consumption, while savings cards can only be used after a certain amount of money has been deposited.

2. You can choose password-free payment when swiping a credit card, but you must enter a password for a debit card.

3. There is no current interest on the money saved in the credit card, but there is current interest on the money in the savings card.

4. There is a handling fee for cash withdrawal with a credit card, but there is no cash withdrawal handling fee for a debit card.

5. The annual fee for credit cards is relatively high. For debit cards, some banks have annual fees, but most banks waive them.

6. It is more difficult to apply for a credit card than a debit card. To apply for a credit card, you need proof of income, etc., but for a debit card you can apply as long as you have the capacity for civil conduct.

How to use credit card?

Credit cards are mainly used to consume first and repay later. You can use bank funds to consume in advance and enjoy the interest-free period. This is a financial management method. A credit card is not a savings card, and interest will not be charged on deposits made to the credit card.

Credit cards can be used as payment tools and can be consumed directly through the card-swiping POS machines or online payment platforms installed by merchants. Banks will also provide you with various forms of points, discounts, installments, draws, promotions and other activities. Credit cards are still the main international payment tool. You can conveniently shop overseas and on international websites. If you are staying in a hotel on a business trip, only a credit card can complete the hotel pre-authorization for you.

That’s it for the introduction of what a credit card is and how to use it.