Why do some people say you should never get a credit card? What are the disadvantages?

It’s a bit extreme to say you should never apply for a credit card, but you really shouldn’t apply for too many credit cards.

Many people, including me, initially apply for a credit card because they want to have an interest-free period if they use the credit card for future purchases, and there are many credit card promotions, such as some credit cards and e-commerce or offline stores. There are cooperations, and there are many activities that offer discounts on purchases you make, so as consumers we may apply for a credit card because of this.

But it is worth mentioning that currently, the bank’s credit card center can be regarded as a very profitable business department in the bank’s business. To put it simply, in terms of our credit card installment and card swiping fees , enough to make banks very profitable. /9a504fc2d562853505e87ca29cef76c6a7ef632d?x-bce-process=image/resize, m_lfit, w_450, h_600, limit_1/quality, q_85

What are the possible disadvantages of credit card processing? Share:

1. Credit cards promote personal consumption and may increase unnecessary personal debt.

In the past, we all used cash for consumption. If we took out banknotes, we would feel distressed. Since the advent of credit cards, both online and offline purchases may be made on impulse without considering one's own income capacity. When the credit card repayment date comes, it feels a bit sour. Even if your income is tight, you may not be able to repay it all at once, and you will start to live in installments. Installment consumption is not worth mentioning to people who are not familiar with the industry, but in fact, credit card installment is very expensive. For example, if the installment is 50,000, and it is repaid in 12 installments, the monthly interest rate is 0.7, then the monthly handling fee is 350 yuan. This 350 yuan will not be reduced with the monthly principal repayment. Instead, this 350 yuan needs to be paid for 12 months. The total handling fee payable for 12 months is 4,200 yuan. But in fact, the principal is being repaid every month, which means that the average principal used is actually 25,000 yuan, so the actual credit card installment interest rate is 1.4 per month, which is very expensive. In fact, it is not as good as a normal bank loan.

2. Relatives and friends may come to borrow money because you have a credit card.

There are too many cases like this, so sometimes if you apply for a credit card, it’s better to know it yourself. Don’t let your relatives and friends know, otherwise it will easily lead to a "bloody crime" of borrowing a credit card. Let’s put it this way. Originally, everyone knew your income and you might not be that wealthy. But after you apply for a credit card and your relatives and friends know about it, they may easily think of you and your credit card when they need financial assistance. Then you don’t I was embarrassed to borrow it, but they wanted to cash it out, and I didn’t know when I would be able to pay it back. This was the beginning of a tragedy.

3. If you apply for a credit card, you may cash it out and use it as a loan if you need funds later.

Some people apply for credit cards and need to cash out to make ends meet. Regardless of whether the cashed out money is used for legitimate purposes, it will be the beginning of increasing our own liabilities. Logically speaking, cashing out on credit cards is illegal. Banks may turn a blind eye because it is profitable. But for individuals, the records of credit card cash-out are actually screened in the bank's system, and there are obvious records in the credit report. If when you want to buy a house in the short term, your credit card happens to be cashed out, forming a debt record, the bank is actually very disgusted. Those who use credit cards excessively would rather see your record of using loans than see you using credit cards with high limits and high frequency for financing or consumption.

4. Credit card bills are easy to forget, which affects personal credit records.

Some people may forget to return just one credit card, let alone those who apply for multiple credit cards. I have seen a lot of customers with overdue records on their credit reports. Basically, they are due to forgotten credit cards. In fact, the amount is not large, some even only a few yuan, but when the number of transactions is large, it will be very expensive. It will affect loans, let alone bank loans. Loan products of Internet finance companies will also depend on credit reports.

Overdue credit more than 6 times in two years, regardless of financial reasons, is called a broken credit report. When applying for a loan, the response you hear must be "Hello, we are happy to serve you. Your credit report record does not meet our requirements at present." Loan requirement. Thank you. "/e4dde71190ef76c643da55a89116fdfaaf51672d?x-bce-process=image/resize, m_lfit, w_450, h_600, limit_1/quality, q_85

5. Credit card activation for small password-free payments or even no transactions The password can be used, triggering fraud.

Some banks’ credit cards can be used directly without setting a transaction password in the early stage. This is scary. I am someone who often forgets credit card passwords. I used to apply for a credit card from a certain bank and entered the correct password every time. This was completely impossible before, so I tried to swipe twice and the passwords were different. Discovery can be realized and consumed. I was shocked and quickly called customer service to set up a credit card transaction password. Some credit cards enable small-amount password-free payments when the customer activates and sets a password before using them. That is, a purchase of 300 yuan does not require entering a password, so there is a risk. Here, it is also recommended that if friends apply for a credit card, they must call customer service to ask clearly about their credit card situation, including whether to set a complete query password, transaction password, and whether to activate the small-amount password-free payment function. If so, it is recommended to immediately deal with.

So, in our lives, we can actually apply for no more than 3 credit cards to meet daily consumption. But if you don’t particularly need a high limit, it is recommended to adjust the limit of a single card to less than 20,000. Ordinary consumption can be satisfied. It is recommended that friends, whether using credit cards or not, should live within their means and use credit cards or other financial services correctly based on their own financial situation. Life can be made beautiful through finance, or it can destroy everything because of finance, so be reverent.

Criticisms and corrections are welcome. If you have different opinions, please contact me in the comment area or private message to discuss. /fcfaaf51f3deb48f67610f5dfc1f3a292df5782d?x-bce-process=image/resize,m_lfit,w_450,h_600,limit_1/quality,q_85