Advantages of credit cards:

1. Safe consumption.

When cardholders are shopping, swiping the card can save time in paying cash and getting change. At the same time, credit cards are more secure than cash consumption. Once the cash is lost, it is impossible to recover it, but if the credit card is lost, , as long as you enter the wrong secret three times, the card will be automatically locked.

2. Interest-free overdraft consumption.

Credit card is a kind of consumption that does not require a deposit to be overdrafted. From the generation of this consumption bill to the repayment date generated by the bank, as long as the full amount is paid off, there is no need to pay anything to the bank. Interest.

3. Enjoy discounts.

Card holders can enjoy fixed discounts when making purchases at merchants designated by the bank. For example, in the previous cooperation between Bank of Communications and Xinbanban, all cardholders can enjoy a 50% discount as long as they use Bank of Communications credit cards to make purchases every Friday.

4. Credit accumulation.

While using a credit card, you can also accumulate personal credit. It is also helpful for cardholders to use the card correctly and maintain a good credit report in their future life.

5. Transparent consumption.

Before the reconciliation day of each month, the bank will send the last month’s consumption bills to the cardholders for free by express delivery, so that everyone can clearly know each consumption expenditure. It greatly improves the transparency of consumption.

6. Redeem points for gifts.

In order to encourage users to use credit cards for consumption, card issuers have also set up a function to accumulate points. By using points, cardholders can participate in various lottery activities throughout the year and even redeem them for gifts.

7. Dual currency consumption.

As we all know, credit cards include dual-currency cards and single-currency cards. Dual-currency cards mean that cardholders can make purchases at home and abroad; single-currency cards mean that cardholders can make purchases at home or abroad. towards consumption. One of the great advantages of dual-currency cards is that cardholders do not need to exchange foreign currencies when spending abroad, they can directly swipe their credit cards, saving some unnecessary trouble.

Disadvantages of credit cards:

1. Overdue payments require high interest rates and affect credit reporting.

If the cardholder does not manage the card properly during use. Failure to repay on time on the reconciliation date. Then the bank will charge users high interest rates. At the same time, once the cardholder repays overdue, it will be reported to the People's Bank of China's credit reporting system, which will create a bad record for future credit.

2. Blind consumption.

Nowadays, a wide variety of products appear in our lives. In order to reduce people's purchasing pressure, many merchants will sell products in installments. At this time, many people will use their credit cards to "swipe" everything once they see the items they want in the center, failing to correctly consider their own repayment ability. Another point is that swiping a card is not a cash payment, which can easily lead to people spending blindly, thus bringing a financial burden to their lives.

3. Stealing credit limit.

Another function of credit card consumption is password-free consumption. Many people will activate this function if they want to pay quickly and conveniently. But if the cardholder's credit card is lost and someone else picks it up and uses it for consumption, the credit limit can be stolen at any time.

4. An annual fee is required.

When using a credit card, the card issuer will charge you a certain annual fee.