A credit card is a credit certificate issued by a commercial bank or credit card company to consumers with qualified credit. Consumers holding credit cards can shop or consume at specially appointed commercial service departments, and then the bank will make settlements with merchants and cardholders. Cardholders can overdraft within the prescribed limit.

A credit card is generally a special carrier plastic card with a length of 85.60 mm, a width of 53.98 mm, and a thickness of 1 mm. The name of the card issuer, validity period, number, cardholder name, etc. are printed on the front, and there is a chip on the back. Magnetic strip, signature strip. Cardholders can use their credit cards to shop and spend money with special entities and deposit and withdraw cash from banks.

Credit cards are divided into credit cards and quasi-credit cards. Credit cards refer to credit cards in which the cardholder has a certain credit limit and can consume within the credit limit and then repay; quasi-credit card It refers to a quasi-credit card in which the cardholder deposits a certain amount of reserve fund as required. When the reserve account balance is insufficient to pay, the cardholder can overdraw within the specified credit limit. The so-called credit card generally refers to a credit card only.

Extended information:

The dangers of credit card overdraft:

1. Producing a bad credit record;

2. Interest: 10,000 per day Calculated at five-fifths;

3. Late payment fee: generally calculated as 5% of the unpaid portion of the minimum repayment amount (depending on the regulations of each bank);

4. Malicious credit card overdraft repayment You may face criminal penalties;

5. If you are blacklisted by a bank, you will no longer be able to have a credit relationship with the bank within 5 years from the date of paying off the debt. Your credit worthiness will not be greatly affected if you repay one or two days late, but overdraft interest will be charged. That is, overdraft interest will be charged for two days based on one ten thousandth of the overdraft amount.

Baidu Encyclopedia-Credit Card