Credit card is a consumer business launched by banks. Cardholders can use the credit card limit to make purchases in advance and repay the consumption in the next month. Nowadays, there are many types of credit cards, and each bank offers many promotions, such as shopping mall discounts, gas discounts, points redemption, etc. Why do some people say you should never apply for a credit card? Let’s analyze the reasons below.
1. Increase personal consumption. In the past, we used paper money to pay for shopping and meals, which made us feel the hardship of making money. When using credit cards, you only need to swipe the card to get what you want, and you can get what you want in the same month. There is no need to repay, which also makes many consumers blind. They will buy something they like when they see it. Only when they check the bill on the bill day, they find that the consumption limit has exceeded their repayment ability, adding unnecessary personal debt. .
2. Cashing out with credit cards. Some people will cash out through credit cards in order to obtain cash. This is also prohibited by our country's orders and is an illegal act. For users who are in urgent need of cash, cashing out may affect their personal credit.
3. Credit card is overdue. There are many reasons for overdue. It may be overdue due to insufficient repayment ability, or it may be overdue because you have forgotten the repayment date. Overdue credit card will affect your personal credit. Later, it will be overdue. The possibility of approval of housing loans and car loans by banks is very low.
4. The chance of credit card being stolen or swiped is very small, but it cannot be ruled out. Now many users have opened credit card micro-payments. If the credit card is lost, others only need to swipe the card, no need to You can pay with your password.
5. There are advantages and disadvantages to using credit cards. The disadvantage is that it will increase personal consumption, overdue credit may be affected, and there may also be theft; the advantage is that you can spend in advance and buy what you like. items, you can participate in merchant promotions launched by credit cards, and repaying on time can increase your credit record, and your bank loan approval rate will increase in the future.
6. How important is your personal credit record? As long as you have applied for a credit card or a loan, you will know. Once your credit record is stained, it will be difficult to apply for a credit card. This is not the case. The most troublesome thing, the worst thing is that if you want to buy a house in the future and your credit is stained, the loan amount of the mortgage loan will be lower than others, and the interest rate will be higher than others. If the application is seriously overdue or you even want to pay more interest, the bank will not accept it. will lend it to you.
7. If the credit card debt is not repaid for more than three months, it will be regarded as a malicious overdraft, and the bank can initiate judicial proceedings. my country's criminal law stipulates that if a credit card overdraft exceeds 50,000 yuan, the debt is in arrears for more than 3 months, and the bank refuses to repay after three or more reminders, the judicial authorities will take corresponding measures (criminal detention for less than 50,000 yuan).
8. If the credit card is not repaid, the bank will take back the revolving credit granted to the cardholder and the credit card will be suspended. For repeated repayment arrears or long-term arrears of large amounts, the bank will consider the cardholder to have a higher risk of repayment, and will stop using the credit card and recover the arrears from the cardholder. This will cause the bank to encounter problems. If the credit card debt is still not repaid after collection, the bank may apply to auction the cardholder's other fixed assets.
In short, whether to apply for a credit card depends on personal needs. After applying for a credit card, you must spend reasonably, repay on time, do not cash out, and keep it properly.