Why do you never apply for a credit card? What are the disadvantages?

Why do you never apply for a credit card? What are the disadvantages?

Nowadays, almost everyone has one or more credit cards, and many young people are accustomed to using credit cards to overdraft when shopping.

Because credit card consumption not only enjoys the interest-free period, but also provides various points and discounts. However, some netizens on the Internet say that you should never apply for a credit card. What is the reason? What are the disadvantages of applying for a credit card?

The essence of a credit card is a credit product. Cardholders can use the credit card limit for overdraft consumption, which allows everyone to purchase their favorite products in advance.

And as long as the cardholder can repay the loan within the specified time, he can enjoy the interest-free period. This is equivalent to the credit card user using the bank's money to buy things first, and then comparing the money with the money after a period of time. Returned to the bank, this consumption method provides people with more convenience.

But everything has two sides. If you use a credit card improperly, it will also cause many adverse consequences to you. Some people say that you should never apply for a credit card because it may have the following disadvantages: :

1. Cardholders develop bad consumption habits.

For some cardholders, credit cards were quite good when they first started using them. However, since the credit card spends only the limit, the cardholder does not feel that he is paying back money when he spends it.

As a result, users spend more and more and swipe more and more credit cards. It is not until the repayment date that they realize that they have consumed too much.

If credit card users remain in this consumption pattern for a long time, they will put greater repayment pressure on themselves and may become card slaves.

2. Credit card users usually do not pay attention to card security, resulting in economic losses.

There are often news on the Internet about credit card theft. If the cardholder does not take good care of his credit card, security code, and password, the card may be stolen, which will cause great harm to the holder. The cardholder caused economic losses.

3. Personal credit is affected by overdue credit cards.

After using a credit card for consumption, the user should repay the debt within the specified repayment period. If an overdue behavior occurs accidentally, the bank will upload the user's overdue record to the central bank's credit reporting system and will give The cardholder's personal credit will be stained. If the personal credit report is poor, then the later purchase of a house or car may be affected.

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

Nowadays, credit cards have become an indispensable consumption tool in our lives, but the impact it brings to us is not necessarily good. Some people say that it brings convenience to our lives. Some people also discourage you from applying for a credit card. So what are the pros and cons of applying for a credit card? Let’s find out together!

Benefits of applying for a credit card:

1. Saves you the trouble of carrying cash. When using a credit card to consume, you only need to swipe the card, and you can consume first and pay later. If you can't come in a short time, you can spend by credit card.

2. Financial investment can be made. If the consumption is made on the second day of the credit card statement date, the interest-free period can be up to more than 50 days, so if you have sufficient funds on hand, you can invest this Part of the funds are used to invest in financial products to earn additional income.

3. Credit cards generally cooperate with many merchants. Taking China Merchants Bank as an example, you can enjoy a 20% discount when you swipe your card at a cooperative merchant of China Merchants Bank’s credit card.

4. It is good for personal credit reporting. But any lending bank will review the borrower's credit record. If the borrower has a credit card and has a good repayment record, it will be helpful for the loan.

Risks of applying for a credit card:

Credit card is a double-edged sword. If used well, it can bring us many benefits. If used poorly, it will also cause risks.

1. For example, credit cards can be overdrafted for consumption. Because you can’t see cash when paying, many people have no concept of spending money. This can easily lead to excessive credit card overdrafts. If you cannot repay on time after the overdraft, , will have a very bad impact on personal credit.

2. Generate high interest.

If the credit card is used improperly, once it is overdue, overdue interest and late payment fees will be incurred. What is more serious is that you have to use an outside repayment company to repay, and you will have to pay higher interest and handling fees, and may even Affect personal credit record.

Risks of having too many credit cards:

1. Too many credit cards are inconvenient to manage. Firstly, repayment is troublesome. Secondly, it is easy to overdue due to forgetting to pay the annual fee.

2. Credit cards are one of our liabilities. If you have many credit cards and the limit of each credit card is not small, then when applying for a loan, the bank will count these as your Debt ratio is not conducive to successful loans.

Why do you never apply for a credit card (debit card)?

The reason why it is said that you should never apply for a credit card (credit card) is because there are the following risks in applying for a credit card (credit card):

1. Every credit card (debit card) Repaying your loans on time every term will help maintain your personal credit. However, if the repayment is overdue, the overdue record will be uploaded to the People's Bank of China credit system, which will cause personal credit stains in the long run and will be detrimental to future applications for mortgage loans, car loans and other businesses.

2. Credit cards (debit cards) are essentially overdraft consumption. Some users have poor self-control and it is easy to over-consume when applying for a credit card (debit card). In this way, not only will it cause its own debt crisis, but it will also face penalties such as collections and penalty interest.

More and more people don’t like to use credit cards. Why?

I also have friends like this. They liked to use credit cards at first, but then they fell into a vicious cycle. They basically spent money every month, so in order to prevent themselves from spending money randomly, they simply didn’t use credit cards. . To put it bluntly, a credit card is an overdraft of our next month's salary. The purpose is to facilitate the bank's capital flow and consumption. However, many things have happened in the past two years that make people feel powerless and helpless, and some people have faced this credit card after losing their jobs. If they don’t have a credit card, they won’t be in the risk of debt collection, and they don’t have to worry about problems with their credit report.

Because holding a credit card often gives people the illusion that they are not using their own money, as long as they pay it back next month, some people will even fall into the dilemma of using the card to support the card. Of course, credit cards do not bring benefits to some people, but bring them disadvantages and are a burden, so they simply stop using credit cards.

Once a credit card is overdue, its rate will reach 18%, so the fee is higher. Some people will no longer use it after understanding this. In fact, the most troublesome thing about using a credit card is overdue. After the due date, you have to call to apply for installment. If the bank does not agree, we may be recorded with a bad credit. For some people, naturally, they are not willing to do so. , so in order to avoid this happening again, just don’t use it.

Many people now like to shop online. Many online platforms will launch service products similar to credit cards. These products have similar functions to credit cards, but they also have a big advantage. , you can just show the payment code directly without swiping the card, which is why many people are reluctant to use credit cards anymore. To give a simple example, if a person uses Moubao's Moubai to go to the supermarket to buy something, he only needs to show the payment code, and the other party can scan the code to check out. If a credit card is used, then one still needs to swipe the card and enter the password, which is relatively simple. It's troublesome, this is also the reason why some people no longer use credit cards.

Why do you never apply for a credit card? What are the advantages and disadvantages of applying for a credit card?

Why do many people say you should never apply for a credit card? What are the advantages and disadvantages of applying for a credit card? What

Credit cards are a common payment method for overdraft consumption in daily life. After applying for a credit card, we can make overdraft purchases within our own limit, and there is also an interest-free period of up to 50 days. Exclusive benefits for each period, so more and more users are fascinated by the feeling of traveling around the world with one card in hand.

Although credit cards bring us great convenience in daily life, some users think that credit cards are quite deceptive and warn others not to apply for credit cards. So, are credit cards actually good or bad? It mainly depends on the usage and actual needs of the cardholder. While credit cards may bring convenience to others, they may also bring disadvantages to some users. So let’s take a look at the advantages and disadvantages of credit cards. .

Benefits of credit cards:

1. Convenient travel: If many users go abroad or travel to other places, it is particularly convenient to use credit cards for consumption. Especially when we go abroad, credit cards are often used. Payment can be made in other countries.

2. Long interest-free period: The interest-free period of credit cards is generally about 50 days, so it can repay our financial pressure when users need it.

3. Many activities bring discounts: Nowadays, credit cards basically have their own corresponding activities, so users who apply for a credit card that suits them can bring many discounts to themselves in daily life, such as many The car owner's card has corresponding discounts when refueling.

Disadvantages of credit cards:

1. It is easy to develop a psychology of dependence, resulting in irrational consumption: Some users who do not have strong self-control may develop a psychology of dependence in the process of using credit cards. , feel that they have no money anyway and can still use credit cards for consumption, so they consume without restraint, which causes great financial pressure on themselves to repay later, and may also cause overdue repayment. Some users even have financial difficulties. When you use a credit card to cash out, you will owe more and more later, causing your own financial mess.

2. Credit cards will charge annual fees: Generally, after we apply for a credit card, there will be a corresponding annual fee. When many users use credit cards, they may ignore the annual fee, causing the credit card to expire later. However, as long as users meet the requirements when using credit cards, they can also get annual fee reductions and exemptions, so users can pay more attention.

3. There is a possibility of credit card theft: Nowadays, it is inevitable that some criminals will use various means to steal users' credit cards. Therefore, once a credit card is applied for, there will be risks in this regard.

Why don’t you touch a credit card?

Credit cards are a kind of overdraft card. You can consume in advance and repay after the bill comes out. There is nothing wrong with this behavior, but what is your spending power and whether you have a good repayment policy? How is your ability to pay, how is your work situation, etc., because no one can predict what will happen in the future. Once you have a credit card, it is as if you have money. All kinds of unnecessary consumption will occur, and at the same time, it will begin. Debt arises. When a credit card is not paid off, you will want to apply for another credit card to repay the previous one. The debt will snowball, increasing until you can no longer bear it.

A credit card, also called a credit card, is a credit certificate issued by a commercial bank or credit card company to consumers with qualified credit. It takes the form of a card with the issuing bank's name, validity period, number, cardholder's name and other contents printed on the front, and a magnetic stripe and signature strip on the back. Consumers holding credit cards can shop or consume at specially designated commercial service departments, and then the bank will settle the accounts with merchants and cardholders. Cardholders can overdraft within the prescribed limit.

Advantages

Compared with ordinary bank debit cards, the most convenient way to use credit cards is that they can be used for ordinary consumption without cash in the card. In many cases, as long as there is no cash in the card, Just return the amount spent.

You can use overdrafts without deposits, and you can enjoy an interest-free period of 20-56 days for on-time repayment without any interest charges (most banks will charge an interest of 50,000 cents on the day of cash withdrawal, and There is a 2% handling fee. ICBC cash withdrawals are free of handling fees and only charge interest).

Swiping your card when shopping is not only safe and convenient, but also provides points for gifts.

You can enjoy discounts when you use the card at the bank's designated merchants.

Accumulate personal credit and add a record of integrity to your credit file that will benefit you throughout your life.

It is accessible nationwide and you can withdraw money or make purchases by swiping your card at ATMs and POS machines with the UnionPay logo; (Note: Credit cards are only suitable for consumption and swiping. It is best not to withdraw cash. The handling fee for cash withdrawals is very high and very inconvenient. Cost-effective)

Swipe your card for consumption, collect existing points with some credit cards, and offer a variety of discounts and lucky draws throughout the year, so you can always be surprised as long as you use your card; (most credit card online payments do not have points, but online shopping payments Very convenient and fast)

Free mailed statements every month, allowing you to transparently control every consumption expenditure; (now promoting green environmental protection, paper statements can be canceled and changed to electronic statements)

The unique supplementary card function is suitable for couples to manage finances at the same time, or to control their children's financial expenditures.

The free choice of one card and dual currencies is available all over the world. Overseas consumption can be repaid in domestic RMB.

400 or the 5-digit short number starting with 9 is available 24 hours a day. Loss reports are effective immediately and there is zero risk of losing the card.

Have validity period: It is known that the validity period of domestic credit cards is generally three or five years.

Use third-party platforms (the domestic platform that supports credit card bill management is mainly Jujindou) for business cooperation to provide cardholders with preferential services.

Disadvantages

The invention of credit cards is like a double-edged sword, which can solve the temporary economic crisis, but the purpose of banks issuing credit cards is to make money. Once the interest-free repayment time is exceeded, , a high amount of interest will be charged, usually 50,000 per day.

Swiping a card for blind consumption is not like spending money one by one like paying with cash. Once you swipe it, you feel nothing, just a few numbers, which leads to blind consumption and money flowing like water.

Excessive consumption of laptop installments, digital camera installments, and smartphone installments. While enjoying your favorite items in advance, you must also consider whether you are able to repay them.

High Interest Rates If you don’t know how to take care of your credit card and cannot repay the loan as scheduled when the final payment date comes, the bank will charge you high interest rates. (The minimum repayment for the first month of a credit card shall not be less than 10% of the overdraft amount of the month)

Credit cards that require annual fees basically have annual fees, but they basically have annual fee-free policies. , for example, China Construction Bank only needs to swipe the card three times a year to waive the fee; but if you do not swipe the card the number of times specified by the bank in a year, an annual fee will be charged.

Basically, by default, stolen credit cards allow you to use the card without a password. This makes it easy for someone else to use your credit card when it is lost or stolen, causing unnecessary trouble or losses; but in fact, you can also apply for a credit card. Spending by swiping the card with the password - this depends on how you manage your credit card. Of course, many people lack experience in this area and do not close the account after canceling the credit card. Some criminals re-apply for a credit card overdraft and lose money in vain. , very not worth it.

Affected personal credit record Long-term malicious arrears will naturally affect personal credit record and even be blacklisted by the bank. If you want to apply for a bank loan to buy a house or a car in the future, you may be rejected by the bank.

Cancellation Trouble CCTV once reported that a cardholder still received bank statements several months after canceling his credit card after paying off all the outstanding balances. What happened after that made him miserable. This famous article For "Credit Cards That Can't Be Repaid", he exposed the shortcomings of today's credit cards.

Although there is an interest-free period for credit cards, it is only for card consumption. There is no interest-free period for cashing out, and handling fees are also charged.

Let’s stop talking about the introduction of don’t use credit cards.