What are the risks of using credit cards?

1. Risks from cardholders: First, cardholders make malicious overdrafts. The second is that the cardholder falsely claimed that he had not received the goods. The third is to report the loss first, and then use the loss report card extensively in a very short period of time. The fourth is to use the credit card overdraft amount to issue.

2. Risks from merchants: First, fraud by unscrupulous employees. In reality, employees have access to a customer's card information and may even hold the card out of the customer's sight. Unscrupulous employees will use customers' credit cards to make purchases and withhold invoices arising from illegal use, causing customers to suffer losses. The second is fraud by unscrupulous merchants. Unscrupulous merchants use domain names or emails similar to those of well-known stores to guide consumers to log in to their own websites. It is difficult for consumers to identify the authenticity of Internet merchants, and it is easy for consumers to easily submit payment information. The owner of the special store forged the customer's purchase invoice, and then used the fake invoice to request payment from the bank.

3. Risks from third parties: First. The cardholder will make large and rapid transactions until the legitimate cardholder reports the loss and the card is frozen by the bank. The second is. In places such as hotels and restaurants, the authorization link is usually out of sight of the cardholder, which gives unscrupulous staff the opportunity to use small card reading devices to obtain magnetic stripe information. The third is ATM fraud. Fraud that occurs at ATM equipment is usually due to passwords being stolen or forged, or even violent robberies. The fourth is forgery. Criminals first obtain the customer's credit card information, such as by stealing it, or illegally installing a receiving device in a keyboard input device, or a computer hacker obtains it by attacking the online system, and then forges the credit card. The fifth is identity fraud. This includes both consumer identity theft and merchant identity theft. Sixth is false declaration. Criminals use false identity certificates and credit information to apply for credit cards, or falsely report that the card is lost, and then conduct fraudulent purchases or cash withdrawals, causing the bank to suffer losses.

4. Risks from commercial banks: There are illegal staff within commercial banks, and they often take advantage of their authority to commit crimes internally. Such as creating a credit card or already created credit card without authorization and pretending to be a customer to withdraw cash or use the card to make purchases; or exceeding the authority without authorization and withdrawing large amounts of cash; or stealing cash by changing computer customer information and deposit balances.

Is credit card safe?

If you apply for a credit card through the bank's online banking or counter, it is safe.

According to the "Measures for the Supervision and Administration of Credit Card Business of Commercial Banks":

Article 56

The card-issuing bank shall formulate a credit card transaction authorization and risk monitoring and management system, Equip necessary equipment, systems and personnel to ensure 24-hour transaction authorization and real-time monitoring. For credit card accounts with suspicious transactions, risk management measures such as contacting the cardholder for confirmation, adjusting the credit limit, locking the account, and emergency payment stop should be taken promptly.

The card-issuing bank shall conduct risk investigation and timely processing of suspicious transactions by telephone verification, contacting the acquiring bank, order adjustment, or on-site visit, and shall promptly report the case to the public security agency when necessary.

Article 57

The card-issuing bank shall clearly stipulate in the credit card application contract (agreement) the specific operating procedures for repaying credit card loans with the cardholder’s relevant assets. Without the cardholder's authorization, the cardholder's assets may not be used to directly offset credit card accounts receivable.

Except otherwise provided by national laws and regulations. When the card-issuing bank receives repayment from the cardholder, it will offset various arrears in the credit card account in the following order: if it is overdue for 1-90 days (inclusive), the interest or fees receivable will be paid first, and then the principal. Repayments will be made in the order of repayment; if the balance is overdue for more than 91 days, repayments will be made in the order of principal first, then interest receivable or various fees.

Article 58

Card-issuing banks must verify passwords or credit card verification codes when providing credit card inquiry and payment services through self-service channels. If it is indeed impossible to verify the password or credit card verification code, the card-issuing bank shall determine the relevant information verification rules for self-service credit card services based on the transaction type, risk nature and risk characteristics to ensure safe card use.

According to the "Measures for the Supervision and Administration of Credit Card Business of Commercial Banks":

Article 94

Card-issuing banks shall continuously monitor changes in the quality of credit card risk assets , the relevant reserve provisions shall be implemented in accordance with the regulations of relevant national departments.

Article 95

Card-issuing banks shall strengthen the identification and write-off management of credit card risk assets, and confirm and write-off in a timely manner. The basis, scope of determination, write-off conditions, etc. for credit card business shall comply with the regulations of relevant national departments.

Article 96

Card-issuing banks shall establish scientific and reasonable risk monitoring indicators and take corresponding risk control measures in a timely manner

What are the dangers or risks of applying for a credit card? Is it risky

There is a risk of overdue credit cards. Cardholders need to repay their debts according to the date specified by the bank. If they miss the repayment date, they will be overdue. Overdue will not only bear penalty interest, but also leave a bad record on their personal credit report. There is a risk of credit card fraud. Nowadays, there are some criminals on the market who use various means to steal credit cards. Once a credit card is applied for, if the cardholder fails to properly keep their credit card information, there is a risk of it being stolen. For example, some refund software Use puts your credit card at great risk. Credit cards carry the risk of being overdrafted. The overdraft function of credit cards can easily cause some users with poor self-control ability to develop bad consumption habits. If cardholders blindly swipe their cards, they will easily be unable to repay.

1. Benefits of credit cards: Credit cards have an overdraft function. Cardholders can use the credit card limit to pay when making purchases, which can alleviate the financial pressure during consumption to a certain extent. Credit cards are the lowest-cost method among existing financing channels. Many of my friends speculate on real estate by realizing their credit card limits, and they only need to pay a small fee. Credit cards provide an interest-free period for repayment. As long as the cardholder can repay the loan within the period specified by the bank, he or she can enjoy interest-free payment. You can enjoy various discounts by using credit cards for many consumption activities, and you can also earn some credit card points, which can be used to redeem gifts. It is helpful to improve your personal credit score. Good credit can facilitate you to do many things.

2. Credit card, also called 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. Credit cards are divided into credit cards and quasi-credit cards. A credit card refers to a credit card in which the cardholder has a certain credit limit and can consume within the credit limit and then repay; a quasi-credit card refers to a credit card in which the cardholder can A quasi-credit card that deposits a certain amount of reserve fund and can be overdrafted within the specified credit limit when the reserve account balance is insufficient for payment. The so-called credit card generally refers to a credit card only.

What are the risks of applying for a credit card?

The biggest risk in applying for a credit card is the risk of borrowing. In fact, there is also a risk to the security of personal funds.

Now is a credit society. Many people have their own credit cards, and some people even have multiple credit cards. Credit cards can indeed facilitate our daily lives and provide stable cash flow when we are in short supply. But for most users, many users do not have good habits of using credit cards correctly. Some people even frequently overdraw their credit cards, or even maliciously overdue their credit cards.

1. The first risk is lending risk.

This loan risk mainly refers to the overdraft situation of credit cards. For some young people, some young people’s consumption habits are too advanced and they often overdraft their credit cards. The income of young people is generally not that high. Some people cannot repay the loan after borrowing a credit card. At this time, they will be overdue. Overdue credit card is a very serious credit default, which will not only affect a person's personal credit score, but in serious cases, it may even make a person bear legal liability.

2. The second risk is the risk of personal financial security.

Because now is the Internet era, many people use online payment to purchase goods. Some people may leak their personal information online. Once this happens, the person's credit card is no longer safe. At this time, it is very easy to risk the security of personal funds. In general, this type of risk can be avoided proactively, and it is best for us to develop correct Internet habits.

3. Credit cards will also have many benefits.

As I said above, in addition to the risks of credit cards, credit cards can actually provide everyone with stable cash flow. Many credit cards have an interest-free period. As long as the user repays the balance during the interest-free period, you can directly interpret this period as cash flow during the window period without paying any interest.

Finally, although there are certain risks in applying for and using credit cards, I think personal operating habits will play a more important role.

Credit cards (debit cards) are "dangerous" to use as a credit card. It is best to keep these risks in mind!

Nowadays, more and more people are using credit cards (debit cards), and those who spend money lavishly are prone to all kinds of card debts. Many people will choose to use credit cards to pay off their card debts. How to maintain a card. The so-called card maintenance means that the cardholder applies for multiple credit cards (credit cards) and uses the credit card (credit card) repayment interval to use the limit of one credit card (credit card) to repay another credit card. A credit card (debit card) is in arrears.

This kind of behavior can easily block your credit card (debit card). The main reason is that when you use it, you trigger the bank's risk control system, and the bank determines that you have withdrawn cash, or have The risk of malicious overdraft; many people think that there is nothing wrong with the way they swipe their credit card (debit card), but as long as the bank's risk control system is touched, the card can easily be blocked. What bad credit card swiping habits will lead to card blocking?

Let me summarize a few points for you:

To put it simply, using a credit card to maintain a credit card means tearing down one wall to make up for the other. Many people think that using a credit card to maintain a credit card can alleviate the pressure of repayment. , but in the final analysis, the card gods who play with credit cards (debit cards) will basically not touch it, because the harm of using a card to maintain a card is really great, don’t you believe it? You can read on:

1. High interest and handling fees

Maintaining a card with a card is usually maintained through transfers between credit cards (debit cards), cash withdrawals, etc. , but no matter which method you use to withdraw the limit from your credit card (debit card), you will face handling fees and interest.

General cash withdrawal fees are between 1 and 2.5 of the amount of each cash withdrawal, and most banks begin to charge cash interest from the date the overdraft withdrawal is entered into the account. The daily interest rate is 0.05%, calculated on a monthly basis. Compound interest. Therefore, the cost of withdrawing cash for a long time is also very high.

2. It is illegal to withdraw cash

Following the first point, because the cost of withdrawing cash is high, many people choose to withdraw cash. It is illegal to withdraw cash. Once the bank I found that it is possible to have your credit limit reduced, your card blocked, or your credit card subject to risk control. It is also easy to get on the bank's blacklist and be locked up in a dark room, which affects your personal credit report.

3. Increase in personal debt ratio

Card-based maintenance often requires the interoperability of multiple bank cards to ensure normal repayment, and as the number of credit cards (debit cards) increases, The corresponding personal debt ratio will also increase, and the card limit will occupy the approval limit for home loans and car loans. This is why we recommend that you not hold too many cards and the total credit limit should not exceed your personal annual income.

4. Security risks

Some bold people will choose POS machines to withdraw cash to support their cards. Illegal POS machines to swipe credit cards (debit cards) are very risky and can easily lead to Personal identity information on credit cards (debit cards) is leaked, leading to risks such as theft and fraudulent application for cards.

Bank credit cards (debit cards) are now very common and deeply loved. In real life, there are many people who are interested in credit cards (debit cards). Here is a kind reminder, as an ordinary person Credit cards (debit cards) are a very friendly tool for daily consumption, but if used as speculative capital, then credit cards (debit cards) will be your accomplice into the abyss. It is a double-edged sword. The best card slave is the best. So self-disciplined!

That’s it for the introduction to whether credit cards are dangerous.