2. Explanation of common credit card vocabulary

1. Credit limit: The credit limit refers to the maximum overdraft limit that the bank gives you when approving your credit card. You can only Use the card to make purchases within this limit. If you exceed this limit, you will not be able to use the card to make purchases normally. The credit limit is determined based on a comprehensive evaluation based on the information you filled in when applying for a credit card and the relevant supporting documents provided. The main card and supplementary card share the same limit. Generally speaking, the RMB limit and the USD limit in a dual-currency credit card can be converted to each other. For example, if your limit is 30,000 RMB, when you use the card overseas, your credit limit is approximately equivalent to US$5,000. The credit limit will be adjusted regularly by the bank, but you can proactively provide relevant proof of financial resources to request an adjustment of the credit limit. In addition, when you need a higher limit within a certain period of time when traveling abroad, moving to a new home, etc., you can request to increase the temporary credit limit.

2. Billing date: The billing date refers to the date when the card-issuing bank does not regularly summarize the transactions and expenses incurred in the cardholder's credit card account in the current period, settle interest, and calculate the repayment due by the cardholder in the current period. . The billing date is a fixed day.

3. Interest-free repayment period: For non-cash transactions, the period from the bank accounting date to the due repayment date is the interest-free repayment period. The interest-free repayment period is as short as 20 days and as long as 56 days. During this period, you don't have to pay any interest as long as you repay the amount due on the current statement in full. Of course, cash withdrawals and cash installments require certain interest and handling fees. There are no interest or handling fees for card payments.

4. Repayment due date: the last date specified by the card issuing bank when the cardholder should repay all the due repayments or the minimum repayment amount.

For example, the monthly statement date of a certain credit card is the 2nd, for example, from August 3, 2018 to September 1, 2018, if any day during this period (August 4) If the product is purchased, the transaction will be posted on September 2, 2018. At present, the interest-free repayment period of most banks is 20 or 25 days after the bill date. If the interest-free repayment period of the bank is changed to 25 days after the bill date, then the due date for this bill will be September 27. That is to say, your transaction on August 4th should be repaid before September 27th. To get the longest repayment period (56 days), choose to shop on August 3, 2018.

5. Minimum repayment amount: The minimum repayment amount means that if the cardholder has difficulty repaying all the amount payable before the due repayment date (inclusive), the minimum repayment amount stipulated by the card issuing bank can be used For some banks and card types, the minimum repayment amount is 5% of the bill amount. For details, please consult your card issuing bank.

There are several key points to talk about in this part. When you have difficulty repaying, you must ensure that you repay the minimum repayment amount. After the minimum repayment amount is repaid, it will not be overdue and will not affect your credit report. If there is no Paying the minimum payment will affect your credit score. There is no interest-free period after the minimum repayment, and the general interest is 0.05% per day. Interest is calculated from the date of transaction.