Why do you need a credit card?

many friends wonder: if you pay by credit card, you will have to pay back the money you spent in the end, and paying back the money itself is very troublesome. It is better to use a debit card directly. I am even more afraid that after having a credit card, everyone will have no feeling about consumption, and the card will be maxed out with a brush. Overdrawing future money is not conducive to personal financial management.

There are actually many uses of credit cards, and using credit cards as a consumption tool is only a primary game. Although many of them are not card gods, they also have some knowledge about credit cards. If you want to get a credit card, let's say eight reasons today:

1. Emergency needs

When making financial planning, we usually control the cash flow to about six months' living expenses, such as spending 1, yuan a month, so stay.

But the plan can't keep up with the change. There are always some scenes that may make you anxious, such as the need to buy a big item, or the temporary illness. Now, an operation costs five figures less, and there is not enough cash! The money in stocks and funds is still tied up and I don't want to withdraw it like this! What should we do?

If you have a credit card, you can use it immediately, and pay it back after 5 days (you can gain more time by modifying the billing date function). It is possible that you will get paid at that time, maybe the stock will go up, and the fund will stop making profits. At least if you have a credit card, you will have one more choice. If you don't have a credit card, you will either ask someone to borrow money or painfully realize other wealth management products, and you will be very passive.

2. Credit in the bank

People in Jianghu always borrow money, and the lowest cost of borrowing money is the bank, especially the mortgage interest rate, which is about 5%, which is lower than all kinds of loans.

but why should the bank lend you money? Why should the bank lend you more money?

In addition to the guarantee, the bank will also check your credit history. The better the credit, the higher the probability of successful loan. Credit card is one of the tools to prove personal credit, and a high credit card can also prove personal repayment ability.

All credit card account opening records will be clearly listed in our credit report. When making a loan, the bank will be authorized to check the personal credit report in writing/online, so that the credit record can be approved more quickly. For example, if you have a Bank of China card that is notoriously difficult to get off, it means that even the Bank of China recognizes you. In the future, the threshold for opening other banks' cards or applying for credit loans will be much lower, and you can even enjoy lower interest.

sometimes you don't have to borrow money if you don't want to owe it. You can borrow money to buy a house, buy a car, start a business and see a doctor ... Who would have expected that there would be no such demand in the future? If you wait until you need it urgently, the loan cost of other channels will be very high, 2% is normal, and if it exceeds 36%, it will be usury.

However, credit is a double-edged knife. If your credit card has bad records, such as overdue and arrears, it will also be recorded in the credit report. When you borrow money, the bank will reject you, so everyone must remember to repay it on time.

3. Using cash for financial management during the interest-free period

Money has time value, and there are two directions-

passive depreciation direction: under inflation, 1W today may only be equivalent to 9999.9 yuan now, in other words, if you borrow 1W from the bank now, you only need to pay 9999.9 yuan next month without interest, and you will earn it properly!

active value-added direction: unlike mortgage, some people generally ask if you should repay in advance, and many people will say that if you have good investment ability, you are not recommended to advance, and you can manage your own money to get a yield higher than 5%, then you will earn. Credit cards have an interest-free period, so you can invest the cash you have already spent. As long as the yield is higher than , you have earned it.

Let's give an example that everyone can understand.

Have you found that most enterprises like to suppress wages? Why don't the boss pay daily wages, but ask you to pay them after one month's work? Some will hold it for another month until the end of the second month. Because pressing wages takes up money time, but without giving you interest, it is equivalent to the enterprise borrowing your salary and it is interest-free, and the enterprise earns it.

suppose the salary of all employees is 1 million. If an enterprise puts the money into the monetary fund, it will have 3,333 yuan a month, and an extra income of 4, yuan a year. If the enterprise is originally engaged in loan business, the rate of return on lending will be higher.

So, we can accept that this month's salary will be paid next month. Why can't we accept that this month's consumption will be paid back next month?

the direction of value-added depends on initiative, so we should take the initiative to use cash for financial management during the interest-free period. Suppose you are going to buy an Apple X 8499 yuan, you have three choices: pay cash, swipe your credit card, swipe your credit card and repay it in installments-

Option 1: spend the money directly, and the subsequent payment fails to generate income;

Option 2: If there is a 5-day interest-free period, you can continue to put the 8,499 yuan that you have already spent in the monetary fund and pay it back after 5 days, then you can generate 47.22 yuan of income these days;

Option 3: Repay in 12 installments, because there is a handling fee (can I see the details? Credit cards, IOUs ... Interest on installment consumption is actually very high! ), if you don't manage your finances, you will have to pay 58.44 yuan of interest, while taking the initiative will only cost 314.73 yuan.

credit card installment has its uses, but today we mainly suggest that you choose method 2. Don't underestimate this 47.22 yuan. If you spend a lot of money, such as a big 1W item, you will get 555 yuan after you take the initiative to manage your money, and you will get points by swiping your card. For example, if China Merchants Bank 2 yuan =1 point, you will get 5, points by swiping 1W, while 25 points =1 yuan, you can exchange these 5, points for things in 2 yuan, which is equivalent to 755 yuan more income. What if you encounter activities and double your birthday points?