What are the risks of applying for a credit card?

Credit card risk broadly refers to the risks of card issuers and holders due to various adverse factors during the operation and management of credit card business. The possibility of losses to the cardholder and the specially appointed merchant. And 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.

A credit card is generally a special carrier plastic card with a length of 85.60 mm, a width of 53.98 mm, and a thickness of 1 mm. The name of the card issuer, validity period, number, cardholder name, etc. are printed on the front, and there is a chip on the back. Magnetic strip, signature strip. Cardholders can use their credit cards to shop and spend money with special entities and deposit and withdraw cash from banks. Compared with ordinary bank savings cards, the most convenient way to use a credit card is that you can make ordinary purchases without cash in the card. In many cases, you only need to return the consumed amount on schedule. You can use overdrafts without deposits, and enjoy an interest-free period of 20-56 days for on-time repayment without charging any interest. Most banks will charge an interest of 50,000 cents on the day of cash withdrawal, as well as a handling fee of 2%. Industrial and Commercial Bank of China There is no handling fee for cash withdrawals, only interest is charged.

Swiping your card when shopping is not only safe and convenient, but also provides gift points. You can enjoy discounts when you use your card at the bank's designated merchants. Build personal credit and add a record of integrity to your credit file that will last a lifetime. It is accessible nationwide and you can withdraw money or make purchases by credit card at ATMs and POS machines with the UnionPay logo. Note: Credit cards are only suitable for consumption. It is best not to withdraw cash. The cash withdrawal fee is very high and is not cost-effective. You can spend by swiping your card, collect existing points with some credit cards, and enjoy various discounts and lucky draws throughout the year, so you can always be surprised by using your card. Most credit cards do not have points for online payment, but online shopping and payment are very convenient and fast. Free monthly mailed statements allow you to transparently control every consumption expenditure; now we promote green environmental protection and you can cancel paper statements and change them to electronic statements. The unique supplementary card function is suitable for couples to manage finances at the same time, or to control their children's financial expenditures. The free choice of one card and dual currencies is available all over the world, and overseas consumption can be repaid in domestic RMB. 400 or the 5-digit short number starting with 9 provides 24-hour service. Loss reports are effective immediately and there is zero risk of losing the card. Validity period: It is known that domestic credit cards are generally valid for three or five years.

Why do you never apply for a credit card? What are the advantages and disadvantages of applying for a credit card?

Why do many people say you should never apply for a credit card? What are the advantages and disadvantages of applying for a credit card? What

Credit cards are a common payment method for overdraft consumption in daily life. After applying for a credit card, we can make overdraft purchases within our own limit, and there is also an interest-free period of up to 50 days. Exclusive benefits for each period, so more and more users are fascinated by the feeling of traveling around the world with one card in hand.

Although credit cards bring us great convenience in daily life, some users think that credit cards are quite deceptive and warn others not to apply for credit cards. So, are credit cards actually good or bad? It mainly depends on the usage and actual needs of the cardholder. While credit cards may bring convenience to others, they may also bring disadvantages to some users. So let’s take a look at the advantages and disadvantages of credit cards. .

Benefits of credit cards:

1. Convenient travel: If many users go abroad or travel to other places, it is particularly convenient to use credit cards for consumption. Especially when we go abroad, credit cards are often used. Payment can be made in other countries.

2. Long interest-free period: The interest-free period of credit cards is generally about 50 days, so it can repay our financial pressure when users need it.

3. Many activities bring discounts: Nowadays, credit cards basically have their own corresponding activities, so users who apply for a credit card that suits them can bring many discounts to themselves in daily life, such as many The car owner's card has corresponding discounts when refueling.

Disadvantages of credit cards:

1. It is easy to develop a psychology of dependence, resulting in irrational consumption: Some users who do not have strong self-control may develop a psychology of dependence in the process of using credit cards. , feel that they have no money anyway and can still use credit cards for consumption, so they consume without restraint, which causes great financial pressure on themselves to repay later, and may also cause overdue repayment. Some users even have financial difficulties. When you use a credit card to cash out, you will owe more and more later, causing your own financial mess.

2. Credit cards will charge annual fees: Generally, after we apply for a credit card, there will be a corresponding annual fee. When many users use credit cards, they may ignore the annual fee, causing the credit card to expire later. However, as long as users meet the requirements when using credit cards, they can also get annual fee reductions and exemptions, so users can pay more attention.

3. There is a possibility of credit card theft: Nowadays, it is inevitable that some criminals will use various means to steal users' credit cards. Therefore, once a credit card is applied for, there will be risks in this regard.

Are there any dangers or risks in applying for a credit card?

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 Using it puts your credit card at great risk. There is a risk of overdraft on a credit card. 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 name of the issuing bank, validity period, number, cardholder 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 appointed commercial service departments, and then the bank will make settlements 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 benefits and risks of applying for a credit card?

Benefits:

1. You can overdraft for consumption without deposit, and you can enjoy an interest-free period of 25-56 days and pay back on time without any interest.

2. Swiping your card when shopping is not only safe, hygienic and convenient, but also provides points for gifts.

3. Use the card to enjoy discounts at the bank's designated merchants

4. Accumulate personal credit and add integrity records to your credit file, which will benefit you throughout your life.

5. It is accessible nationwide and you can withdraw money or make purchases by credit card at ATMs and POS machines with the UnionPay logo.

6. Use your card to make purchases and collect existing points.

A variety of discounts and lucky draws are available throughout the year, so you can always be surprised just by using your card.

7. Free monthly mailing statements, allowing you to have a transparent grasp of every consumption expenditure.

8. The unique supplementary card function is suitable for couples to manage finances together or control their children’s financial expenditures.

9. The free choice of one card and dual currencies is available all over the world. Overseas consumption can be repaid in domestic RMB.

Disadvantages:

1. Blind consumption

Swiping a card is not like spending money one by one like paying cash. Once you swipe, you will feel nothing. Numbers lead to blind consumption and spending money like water. However, can you be irrational about what you should buy and what you should not buy?!

2. High interest rates

If you don’t know how to take care of your credit card, the final repayment date will be high. When the loan arrives, you can't repay it as scheduled. The bank charges a certain interest fee to avoid greater risks. You can only blame yourself.

Extended information

CreditCard is a non-cash transaction payment method. It is a small credit payment tool provided by banks to users who consume first and repay later. The earliest credit cards appeared at the end of the 19th century.

Credit cards are divided into two types: credit cards and quasi-credit cards. They provide settlement services, facilitate shopping and consumption, and enhance a sense of security; simplify payment procedures and save social labor; promote product sales and social needs, etc. Features. A credit card is a special credit card issued by a bank or other financial institution to those with good credit status. It is a special card used for shopping and consumption at designated merchants, or for depositing and withdrawing cash at designated banking institutions.