How to waive the annual fee on a credit card, and what counts as consumption?

1. The annual fee of a credit card means the usage fee of the credit card, which refers to the service fee charged by the bank for providing credit card services to cardholders. In addition, the annual fee of each bank’s various credit card products The annual fee standards are public, so you can check the relevant information on the official website.

2. Under normal circumstances, regular credit cards and gold cards are free of annual fees in the first year, so as long as you swipe the card a certain number of times in the year you open the card, you can be exempted from the annual fee in the next year. However, the number of credit card swipes required for annual fee exemption is different for each bank. The specific situation must be based on the standards announced by the credit card issuer.

3. If you don’t use the card after applying for it, you will have to pay the annual fee. This is certainly not cost-effective. However, the annual fee-free rules vary among different banks, making it easy for cardholders to incur annual fees unintentionally.

Cardholders generally believe that credit card agencies adopt the practice of waiving the annual fee in the first year and waiving the annual fee in the following year if the card reaches a certain standard, but this is not the case for all cards. For example, ICBC credit cards do not waive annual fees in the first year. Instead, they need to swipe the card a total of 5 times or spend more than 5,000 yuan to be exempted from the annual fee. China CITIC Bank stipulates that only swiping the card once in the first month after the card is issued can be exempted from the annual fee in the first year. .

As for the rules for exempting the annual fee for the following year, some banks stipulate that as long as the card is swiped more than three times, it will be free of charge, such as China Construction Bank [6.203.85%] and China Everbright Bank; some banks stipulate that the number of card swipes is relatively high. For example, the Shenzhen Development Bank Credit Card requires 18 swipes to waive the annual fee for the following year. Most banks adopt the policy of waiving annual fees 5-6 times, such as ICBC, Agricultural Bank of China, Bank of China, Bank of Communications, China Merchants Bank, etc.

Yinsu.com Financial Planner pointed out that since annual fees are not the main source of income for domestic credit card issuers, banks generally stipulate that annual fees must be waived after a certain number of card swipes, but there is no limit on the amount. However, there are some banks that impose restrictions on the amount of consumption. For example, Shanghai Pudong Development Bank stipulates that the annual fee for the next year can be waived only if the consumption reaches 2,000 yuan or more.

It is also worth noting that the bank’s annual fee exemption rules are not static. A staff member of the Bank of Communications Credit Card Center told reporters that the annual fee for a credit card is based on the collection time of the first year's annual fee, and is pushed back 12 months to the collection time of the next year's annual fee. Bank of Communications credit card annual fee exemption rules will generally be notified to cardholders by text message at the end of the year or the beginning of the next year. Cardholders need to pay attention to whether the annual fee exemption rules have changed.

4. Generally speaking, only ordinary credit cards can enjoy the annual fee exemption rule, while the annual fees for gold cards, platinum cards, diamond cards and other cards are usually not exempt. Also, some high-end platinum cards and unlimited cards do not have an annual fee exemption policy for the first year. Even if they are not activated, they will still be charged an annual fee. As long as they are approved, the annual fee will be credited to your account immediately, so you must pay it back in time. payment.

How are credit card consumption calculated after the repayment date?

Consumption with a credit card after the repayment date will be included in the next bill (everything after the bill date will be included in the next bill).

1. Credit card purchases generally have the shortest interest-free period for purchases made on the day of the statement;

2. Purchases made on the day after the statement date have the longest interest-free period. ;

Example:

The bill date of a bank’s credit card is on the 20th of each month and the repayment date is on the 8th of each month. Then if the consumption is on July 20th, it belongs to July 20th. This bill must be repaid before August 8th, so that the interest-free period will be the shortest;

If it is consumed on July 21st, it belongs to the August 20th bill. Repayment should be made before September 8 to enjoy the longest interest-free period.

Introduction to credit card:

Credit Card (English: CreditCard), also called credit card. It is a non-cash transaction payment method and a simple credit service.

A credit card is generally a special carrier plastic card with consumer credit that is 85.60 mm long, 53.98 mm wide, and 1 mm thick. It is issued by the bank to individuals and organizations, and can be used to shop, consume, and deposit and withdraw cash from the bank. It is in the form of a card with the name of the issuing bank, validity period, number, cardholder name, etc. printed on the front. The card has Chip, magnetic strip, signature strip.

Credit cards are issued to cardholders by banks or credit card companies based on the user's creditworthiness and financial resources. Cardholders do not need to pay cash when using the credit card, and repayment will be made on the billing date (English: BillingDate).

Credit cards are divided into credit cards and quasi-credit cards. Credit cards are issued by banks and give cardholders a certain credit limit. The cardholders can consume within the credit limit and then repay. A credit card; a quasi-credit card refers to a quasi-credit card issued by a bank. The cardholder deposits a certain amount of reserve as required. When the reserve account balance is insufficient for payment, the quasi-credit card can be overdrawn within the prescribed credit limit. The so-called credit card generally refers to a credit card only.

How to calculate the credit card account? How to calculate the credit card bill

1. The calculation method of the billing date is the total consumption before the billing date + the previous balance - the previous balance = the billing amount.

2. If the credit card bill is not repaid in full on the repayment date, the bank will generally accrue interest at 0.05% on the full amount starting from the day after the first purchase date of the month, that is, only Once you repay the minimum repayment amount, all previous purchases will no longer enjoy the interest-free period. The specific interest will be calculated based on the consumption date.

3. The date between the bank statement date and the due payment date is the interest-free repayment date. The interest-free repayment days are generally 20 days, and the longest is 50 days. Of course, the number of interest-free days will fluctuate depending on the month.

4. The billing date is when the card-issuing bank summarizes and settles the various transactions and expenses incurred in the cardholder's credit card account on a monthly basis, calculates interest, and calculates the cardholder's repayment for the current period. date. All consumption from the last bill date to this bill date will be recorded on the current bill, but the consumption on the bill date will be included in the next bill.

How do credit card swipes count?

The number of card swiping times for online credit card payment and POS machine swiping will be accumulated. Even if you pay online for 1 minute, the number of card swiping times will be accumulated. 1. Cash withdrawal by credit card: 1. Cash withdrawal by credit card overdraft: A. Handling fee: It depends on the regulations of each bank. For example, the cash withdrawal fee for Ping An Credit Card is 2.5%, with a minimum of 25 yuan/transaction; for domestic CCB credit cards, it is charged 0.5% of the cash withdrawal amount, with a minimum of RMB 2 yuan/transaction, up to 100 yuan/transaction; China Merchants Bank credit card is charged at 1% of the cash withdrawal amount in China, with a minimum of 10 yuan/transaction; B interest: calculated at 0.05% daily interest. 2. Cash withdrawal for credit card overpayment: Some banks need to charge a handling fee, and some do not. For example, the handling fee of China Merchants Bank is 0.5% of the amount withdrawn, and the minimum charge is RMB 5 yuan or US$1. 2. For credit card purchases at POS machines: 1. Repay in full on time, interest-free; 2. Pay the minimum repayment on time, and a daily interest rate of 0.5% will be charged; 3. Overdue repayment, in addition to the above interest, there will also be Late payment fees.

That’s it for the introduction of how credit card consumption is calculated.