Experts studying abroad say that the use of credit cards is becoming more and more convenient and popular in the United States. It can be used for daily shopping, traveling to restaurants to pay bills, and its frequency and quota are gradually surpassing cash transactions. In the past, people regarded holding a credit card as a symbol of status, but now, due to market competition, card issuers even spread to unemployed college students. Its wide distribution and persistence depend on its two characteristics: "convenience" and "credit". In order to attract customers, the card-issuing bank will generally issue without affecting its own financial situation, and often set various obligations to remind cardholders that "there is no such thing as a free lunch". When the cardholder enjoys the payment first, it is best to understand the services of the credit card, make good use of them, and pay attention to the provisions on fines, so as to "make the card first" and win by surprise.
function of credit card
signing accounts is the basic function of general credit cards. Its advantages are that it is unnecessary to carry huge sums with you, and it can be paid after shopping for a certain period of time, which is helpful for personal cash flow and interest income. The function of this kind of quasi-currency is even more obvious when traveling in other States, if there is still a CreditAvailable in the credit card account. Because in other States, the money card is often not available everywhere because of the difference of connection system; Even if available, some local banks will charge interstate service fees at their discretion. As for personal checks, when shopping locally, you are often asked to show your photo id. When you are in a foreign state, it is even more common to reject checks that are not in that place. Credit cards can still be used as the currency of international travel, because even when you go abroad, although the currency used is different, it has the function of signing accounts worldwide, which can avoid the inconvenience of exchanging local currency.
besides the function of quasi-currency, credit card is also an important source for individuals to establish credit. In the United States, credit history is a part of personal data. When loans are needed for buying a house, buying property, adding furniture, cars, etc., companies will first check the personal credit history to decide whether to lend or not. Even if they are looking for a job, some companies will also check the applicant's past credit history as part of the evaluation of employment. Although credit cards have the basic functions of signing accounts and CashAdvance, which provides great convenience for consumption, consumers may be confused by this convenience if they lack correct financial management and budget concept, resulting in excessive consumption, unable to maintain a good credit record for a long time, and thus lose the due role of credit cards.
in addition to the basic functions, the most often overlooked is the incidental services provided by credit card issuers. In order to attract customers and highlight the characteristics of their credit cards, card issuers often provide various shopping discounts and guarantee services. In the past, this kind of service function was often limited to gold card holders, but nowadays, due to the fierce competition in the credit card market, this kind of service is gradually popularized to ordinary credit card holders. Although the names of the service items provided by card issuers are different, the service contents are similar, and the service combinations provided by different card issuers are not the same. The following is only a brief introduction of common services, but it does not mean that all credit cards have each of the following services. Some credit cards may only have a few of them or new tricks. For details, please read the service manual sent by the credit card company or call the company's customer service hotline. The following is a list of services provided by credit card issuing companies:
(1) Buyerprotectionless BuyerSecurity
This kind of service means that consumers can ask the issuing bank for free repair, update or stop payment or refund if their goods are accidentally damaged, lost, stolen or caught in fire within 9 days of shopping. On the other hand, consumers are required to submit a notice of claim to the card issuing company within 45 days of loss or damage. If the deadline is ignored, they may lose their rights and interests.
(2) Extended warranty period
General goods such as TV and computer? All of them are accompanied by the guarantee provided by the original manufacturer, and most of these guarantees are for free after-sales maintenance services. General stores often encourage consumers to purchase the extended service guarantee provided by the store in addition to the original warranty period. In fact, when you pay by credit card, you can automatically get the extended warranty service provided by the card issuer. This service means that the original warranty period of the original goods with a warranty of less than five years is doubled, but the principle of doubling is not more than one year. If the goods are guaranteed for 9 days, they can be automatically guaranteed to 18 days for this service, but if they are guaranteed for more than two years, they will be extended for one year. Generally, credit cards do not need to be registered in advance. If there is any damage to the goods, as long as the goods are still within the extended warranty period, you can ask the card issuer to repair the products free of charge. However, AmericanExpress requires consumers to register within 3 days of shopping. If they fail to register after 3 days, even though the goods are still in the original factory warranty period, they cannot be added to this service. Therefore, holders of American Express cards have to pay attention.
(3) Travel accident insurance
If you buy air tickets or tickets for other means of transportation by credit card, you can get accident insurance coverage ranging from 5, to 25, when you travel abroad. The amount of insurance varies from card issuer to card issuer. Please refer to the credit card agreement for details.
(4) car rental insurance (collision, loss &; DamageInsurance)
When paying for car rental by credit card, you can enjoy accident insurance such as collision, loss, damage or theft, which can save the average car rental insurance fee of $1 to $13 per day. However, the insured car rental period is usually based on the principle of no more than one month in a row, and the underwriting amount and compensation regulations vary from card issuer to card issuer. Before renting a car, you may wish to ask the card issuer clearly. According to the author's understanding, at present, American Express Card and AT. T
the credit cards issued by Universal Card and ChaseManhattan all provide this service, while the commonly used Citibank credit card does not. In addition to the above-mentioned common service functions, at present, due to other industries besides banks, such as AT&; T,AAA and airlines have also entrusted banks to issue credit cards, which makes the already fierce competition in the credit card market more intense. Therefore, the card issuing units are constantly innovating and providing more diversified services. However, this kind of competitive function varies greatly among different card issuers. Like Citibank,
AAA offers a 1% discount on car rental; American Express Card, Chase and Citibank all offer student discounts or discounted cheap air tickets with different preferential provisions; As well as one card with two functions (which can be used as a calling card), for example, Citibank, American Express and MCI jointly launched a discount on using a credit card as a calling card, and AT&; T company's credit card can enjoy a 1% discount if it is used as a calling card. There are also mail order services, or the accumulated consumption points are discounted by mail order, such as Citidollar and ChaseBonusdollar; Even counting and grading to get gifts, such as Citibank credit card, which is provided within a certain period, can get gifts according to the number of stages. All the services mentioned above are free, and all card issuers also have paid services, such as card protection and baggage insurance. This kind of service is just icing on the cake, with little function, which depends solely on personal needs, and often requires an additional annual fee.
Types of credit cards
At present, most people refer to cards with the function of signing accounts as "credit cards". In fact, according to the terms of payment after signing the bill and the amount of payment, it can be divided into "ChargeCard" and "CreditCard". The former is a travel and entertainment card, which is usually issued by an exclusive company. At present, the common debit card is AmericanExpress, which is exclusively issued by American Express Company, and the other is Diner'sClub, which is issued by Citibank. The feature of the debit card is that there is no GracePeriod, that is, the payment must be paid immediately after receiving the bill, and there is no credit, no accumulated balance and no minimum payable amount.
as for credit cards, Visa, Mastercard and DiscoverCard are the representatives. The former two are basically a kind of BankCard. Visa and Mastercard authorize banks to provide small unsecured private loans, which are repaid in installments within a specific period. Because they are unsecured loans guaranteed by banks, the loan interest rate is much higher than that of ordinary banks. At the same time, there are restrictions on the credit line and the minimum amount of compensation, so as to avoid excessive consumer debt. DiscoverCard is a credit card issued by Sears Group, which has the bank card characteristics of ordinary credit cards. In order to expand the turnover and encourage stores to accept it, the right service fee charged to the seller is generally lower than that of Visa and Mastercard, and it has now occupied a place in the credit card market.
in addition to different issuers, the same card issuing bank also classifies credit cards into different grades according to the credit limit issued, which can usually be divided into three types: platinum card, gold card and ordinary card. Generally, platinum card holders are big entrepreneurs, political celebrities or celebrities, so the holding rate is not universal. At the same time, banks and financial institutions that issue platinum cards are also limited. Gold cards usually require a higher annual fee, ranging from about $5 to $9, and usually require higher qualifications. However, in recent years, the credit card market is booming day by day, and any card issuer does not want the market to be exclusive to others, so the target of appeal has been relaxed a lot. Take American Express Card as an example. After holding the ordinary card for a certain period of time, any consumer will often get an application notice for self-service gold card conversion. Generally speaking, the annual fee for a smart card is higher than that for an ordinary card, but it also enjoys a higher credit line and more service items and insurance lines. As for ordinary cards, the annual fee is mostly about $2, but recently, many credit cards have been issued with annual fee-free for life or annual fee-free for the first year to gain consumers' favor. When holding an ordinary card for the first time, its credit limit depends on the credit degree and income, and then it will be increased according to the consumption situation and needs.
In order to stimulate consumers' purchasing desire and increase their purchasing power, some service industries also set up their own credit departments to issue credit cards exclusive to their stores. Its feature is free of annual fee, and it is only used in this store. At present, the industries that issue such credit cards include gasoline companies, such as Exxon and Amoco. Tire companies such as Goodyear and Firestone. The most common one is a department store. In order to encourage consumers to apply, department stores often set up counters at the door of the store to accept applications and give practical daily necessities to applicants, and from time to time there are various promotional discounts or discount activities, which are designated as exclusive to cardholders. Because the available places are not common, it is far from the general credit card function, so it is easier to apply, and it can be regarded as a way to get started for those who have no credit history at all.
factors that should be considered when applying for a credit card
A good credit card often needs the elements of "multiple functions, less restrictions and wide concessions". If you can understand the services provided by credit cards and their relative regulations before applying, you will not be confused by the dazzling array of application forms, but also make full use of the convenience of credit cards. Generally speaking, however, the services provided by credit cards are not clearly listed in the application form, and most of them can only be seen in detail when they receive the service manual and agreement sent with the card. Before receiving the credit card, at most, you can only ask about the experience and experience of those who have already held the card. Therefore, the less the obligation, the greater the flexibility, which becomes the main factor to consider when applying.
for those who have no credit history at all, it seems to be an urgent task to obtain a credit card. However, at the beginning of trying to apply, although there is no need to have too much scruples, we should not completely ignore the reputation of the card issuing company and the possible price and cost of applying for the card.
a credit card is a must-have-it has many functions. If a person has a credit card alone outside, it means an extra amulet. Whether it is food, clothing, housing, entertainment or pleasure, it can be related to credit cards. You can often get extra discounts and protection by using credit cards. Students who do not have a credit card should apply as early as possible before going abroad or as soon as possible after going abroad.
American study abroad experts say that the use of credit cards is becoming more and more convenient and popular in the United States. It can be used for daily shopping, traveling to restaurants to pay bills, and its frequency and quota are gradually surpassing cash transactions. In the past, people regarded holding a credit card as a symbol of status, but now, due to market competition, card issuers even spread to unemployed college students. Its wide distribution and persistence depend on its two characteristics: "convenience" and "credit". In order to attract customers, the card-issuing bank will generally issue without affecting its own financial situation, and often set various obligations to remind cardholders that "there is no such thing as a free lunch". When the cardholder enjoys first and then pays, it is best to understand the various services of the credit card, make good use of them, and pay attention to the provisions on fines, so.