1. The specific differences between the installment card of China Merchants Bank and the credit card are as follows:
1. The nature is different
(1) The installment card is an automatic installment card introduced by the bank for consumption. Usually, when the consumption or bill reaches the specified amount, it will be automatically phased.
(2) Credit cards, also known as debit cards, are credit certificates issued by commercial banks or credit card companies to consumers with qualified credit. The form is a card with the name of the issuer, expiration date, serial number and the name of the cardholder printed on the front, and a magnetic stripe and signature strip printed on the back.
2. Different amounts
(1) The difference between an installment card and a credit card is that when the installment card holder uses it to spend money, as long as the amount meets the installment standard, it will be automatically installment. If credit card holders want to pay by installment, they should apply for it themselves after spending.
(2) According to relevant laws and regulations, the installment card is generally higher than the credit card, with a minimum of 1, yuan; The minimum credit card limit is 1 yuan. , you need to apply for a platinum card credit card before you can apply for a quota of more than 1,.
2. Installment card has several typical functions. The following are examples of China Merchants Bank Installment Card:
1. Card Name: China Merchants Bank Zunshang Platinum Installment Card.
2. Card quota: up to 3,.
3. Annual fee policy: the annual fee will be exempted in the first year, and the annual fee will be exempted in the following year if you swipe your card three times in that year.
4. automatic installment payment amount: automatic installment payment when the total consumption reaches 3 yuan or 2 yuan.
5. Installment payment rate: (The specific rate is subject to the actual notice of the bank)
3. Installment payment card is actually a credit card, but it is not an accessory card. It is independent. The biggest difference between it and ordinary credit card is that it is automatically phased in.
4. Advantages and disadvantages of credit card bill installment:
1. Advantages of credit card bill installment:
(1) Relieve repayment pressure: The biggest advantage of handling credit card installment business is definitely to reduce the burden. In the case of excessive single-period bill, the cardholder will have greater pressure to repay in full. The bill installment can spread the bill over multiple months, and the repayment pressure will be less.
(2) It is helpful for credit card withdrawal: banks rely on fees, interest, annual fees, etc., and there are installment fees for handling credit card bills, so that banks can make money, and banks will certainly want cardholders to handle installment business frequently. The potential rule is that after the cardholder applies to the bank for credit card withdrawal, the bank is more willing to approve it, and the success rate of withdrawal will be improved.
(3) There are discounts for credit card bill installment: the bank will hold some credit card discount activities from time to time, among which there are discount activities for credit card bill installment. At this time, it can reduce some interest or handling fees, which is quite worthwhile.
(4) Credit card value-added discount: Generally, bank credit cards have special discount merchants, and shopping malls can give gifts at a discount or in full, while consumption has accumulated points, which can be exchanged for gifts, air miles or cash in the future.
2. Disadvantages of credit card installment:
(1) Undertaking installment fee: Every bank has to charge a certain fee for credit card installment business, and different banks charge different fees. Take China Merchants Bank as an example, the handling fee is .66%, and the longer the installment time is, the higher the handling fee will be. Then, in the case of an installment bill of 5, yuan, it is necessary to bear the 33 yuan installment fee every month, and the 12 installments will bear the handling fee of 396 yuan. Moreover, the handling fee will not be reduced, and the prepayment will also be deducted.
(2) reduce the available credit line: since the credit card line is fixed and the bill is divided into stages, the flexible credit line will be reduced, which will affect the subsequent consumption.
(3) It is easy to lead to excessive consumption: because it will take a long time to pay back the money, and only a little money will be paid back every month, the repayment method of "spending 24 yuan and only paying back 2 yuan every month" is easy to give cardholders an illusion, that is, spending money casually and repayment is easy, which is easy to lead to excessive consumption, high bills and selfless consumption.