Weilidai is more cost-effective to borrow money. The main function of a credit card is to use it for consumption. When you use a credit card to make purchases, you have a maximum interest-free period of 56 days. However, it is not cost-effective to use a credit card to withdraw cash. Not only does it require handling fees, but the daily interest rate is also relatively high. Credit card cash withdrawals require handling fees and interest. The handling fee is 1% of the cash withdrawal amount, and interest is charged based on the daily interest rate of 5/10,000.

Extended information:

Handling fee: the cost incurred during the service process. The term "Service Charge" (English: Service Charge) is explained as "the procedure of doing things". For example, go through "borrowing procedures", "transfer procedures", "securities trading procedures" and so on. Therefore, "handling fee" can be explained as follows: a kind of labor compensation collected for handling related matters on behalf of others; or for the client, it is a corresponding remuneration paid for others to handle related matters on their behalf. Such as: securities transaction fees, air ticket agency fees, withholding and payment fees, treasury bond agency fees, etc.

From a tax perspective, various agency fees collected by operators should be regarded as taxable income and paid value-added tax; the income after deducting relevant expenses must also pay corporate income tax. Another situation is when the tax department performs tax withholding and payment tasks. The withholding and payment fees obtained are tax-free income and do not need to pay business tax and other taxes.

Credit cards refer to various media that record cardholder account information, have bank credit lines and overdraft functions, and provide cardholders with related banking services.

Credit cards stipulated in the relevant laws of our country ("Interpretation of the Standing Committee of the National People's Congress on Relevant Credit Card Regulations") refer to credit cards issued by commercial banks or other financial institutions with the functions of consumption payment, credit loans, transfer settlement , cash deposit and withdrawal and other full or partial functions of the electronic payment card.

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 prescribed credit limit. The so-called credit card generally refers to a credit card only.

Applicants for credit cards can be divided into units and individuals. Applicants should be institutions, enterprises and business units, foreign-funded enterprises and individual industrial and commercial households with independent legal person status in my country. Each unit applying for a credit card can receive a main card and multiple (5-10) supplementary cards as needed.