How to use credit cards most cost-effectively
1. Many credit cards now charge annual fees, but banks have stipulated a policy that the annual fee can be reduced or reduced by the number of card swipes, so if you swipe the card more often, you will be exempted from the annual fee. The fees are quite cost-effective, but some high-end credit cards cannot waive the annual fee, so it’s best to find out before applying.
2. Try to use the rights and interests included in your credit card. In order to get more credit card customers, banks will provide certain rights and interests with each credit card, such as certain discounts for watching movies, eating, karaoke, and staying in hotels. , these discounts can save a lot of money, after all, saving money is equivalent to making money.
3. Credit card purchases will generate certain points. Most bank credit card points have an expiration date, and they will be cleared after the expiration date, so credit card points must be handled properly. For example, you can go directly to the credit card point mall to redeem products, and the points can be converted into cash.
4. Try to enjoy the longest interest-free period. Generally, you can enjoy the longest interest-free period by swiping your card on the second day of your credit card statement. The money saved during the interest-free period can be used to purchase financial products. These financial products You can get good profits.
5. Try not to withdraw cash when using a credit card, because cash withdrawals will charge handling fees and interest. Interest is generally calculated on a daily basis, with a daily interest rate of 5/10,000. The longer the time, the more interest. This is It’s very uneconomical, so try not to withdraw cash when using a credit card.
6. When using a credit card, you must repay it on time. Not only will you be charged penalty interest if you are overdue, it will also have a negative impact on your credit report and cause a lot of inconvenience for future loan applications.
7. Credit card installment allows us to purchase large-amount products in advance, but it requires a certain handling fee. Therefore, credit card installment must be used rationally and not abused to avoid causing trouble in life.
Credit card is a non-cash payment method and a simple credit service. A credit card is generally a plastic card with a length of 85.60 mm, a width of 53.98 mm, and a thickness of 1 mm. It is issued to the cardholder by the bank or credit card company based on the user's creditworthiness and financial resources. The cardholder does not need to pay cash when using the credit card to make purchases. Make further repayments.
Except for some credit cards combined with debit cards, general credit cards are different from debit cards and ATM cards in that credit cards will not directly deduct funds from the user's account.
Credit cards are issued by commercial banks to individuals and organizations. They can use them to shop and consume with specially appointed organizations and deposit and withdraw cash from banks. They are special carrier cards with consumer credit. They are in the form of a card with the card issuing number printed on the front. Cards with bank name, validity period, number, cardholder name, etc., and a magnetic stripe and signature strip on the back.
A real credit card has the following characteristics: it is not encouraged to deposit cash in advance, consume first and repay later, enjoys an interest-free payment period, can repay in installments independently (with a minimum repayment amount), join VISA, MASTER Wait for international credit card organizations to make it universally applicable.
Main features
①Credit card is one of the fastest growing financial services today. It is an electronic currency that can replace traditional cash circulation to a certain extent;
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②Credit cards have both payment and credit functions. Cardholders can use it to purchase goods or enjoy services, and can also obtain certain loans from card issuers by using credit cards;
③Credit cards are high-tech products that integrate financial services and computer technology.
④Credit cards can reduce the use of cash;
⑤Credit cards can provide settlement services, facilitate shopping and consumption, and enhance a sense of security;
⑥Credit cards can simplify collection Reduce payment procedures and save social labor;
⑦Credit cards can promote product sales and meet social needs.
New Central Bank Regulations
On April 15, 2016, the Central Bank issued the "Notice of the People's Bank of China on Matters Related to Credit Card Business", canceling late payment fees on credit cards, introducing liquidated damages, and prohibiting collection Over limit fee. At the same time, corresponding adjustments were made to credit card overdraft interest rates, interest-free repayment periods and minimum repayment amounts. The amount has also been increased from 2,000 yuan per card per day to 10,000 yuan.
The new regulations will be officially implemented on January 1, 2017.
1. Cancel late payment fees and introduce liquidated damages
The "Notice" cancels late payment fees, and the card issuer and cardholder will agree on liquidated damages; cancels over-limit fees, and stipulates that card issuers shall not Service fees bear interest.
2. The credit card overdraft interest rate can be customized
The upper limit and lower limit management of the credit card overdraft interest rate is implemented. The upper limit of the overdraft interest rate is 5/10,000 of the daily interest rate, and the lower limit of the overdraft interest rate is 0.5/10,000 of the daily interest rate. Fluctuate by 30 on the basis of five-fifths. The method of calculating interest on credit card overdrafts, as well as whether interest will be calculated on credit card overpayments and the interest rate standards are determined independently by the card issuer.
3. Interest-free repayment period and minimum repayment amount
The "Notice" cancels the maximum interest-free repayment period, minimum repayment amount standards and additional requirements for overdraft consumption The current regulations on conditions are determined independently by the card issuer based on commercial principles and cardholder needs.
4. The amount of cash withdrawals is increased from 2,000 yuan to 10,000 yuan
The "Notice" optimizes the management mechanism of credit card cash advance business and clearly defines cash withdrawals, cash transfers and cash recharges. Cash borrowing business type. The daily cumulative limit per card for cardholders to handle cash advance withdrawals through ATMs has been increased from RMB 2,000 to RMB 10,000. Cash transfers and cash recharges to my bank settlement account and payment account are allowed.
What is the best way to use a credit card?
When using credit cards, you need to withdraw less cash, make full use of points, link bank cards for automatic repayment, and make full use of the interest-free period. It can be more cost-effective to use it this way.
1. Less
Many people will choose to use it if they don’t bring cash, but because of the high handling fee, additional fees will be incurred, and the extra fees can be tens or even hundreds of yuan. No, this extra expense is completely avoidable.
2. Make full use of points
Credit cards from major banks support point redemption. You can use points to redeem supermarket shopping cards, movie coupons, gas cards, etc., and you can get up to 100% back. Now 5, you can save a lot of money in the long run.
3. Automatic repayment of associated bank cards
Credit cards must be repaid on time on the repayment date, otherwise bad card use records will be generated and personal credit records will be affected. If you have a savings card from the bank where your credit card is located, it is recommended to link the savings card with the credit card. The payment can be automatically repaid on the repayment date, but you must ensure that the savings card has sufficient balance.
4. Make full use of the interest-free period
If you consume on the last day of the bill date, you may enjoy the 56-day interest-free period, but if you choose to consume on the bill date, You may only be able to enjoy the 25-day interest-free period. Some banks' credit cards allow you to change the billing date. Various credit cards have different billing dates, repayment dates and interest-free periods. You can choose a credit card that suits you based on your actual situation and make full use of the interest-free period.
Notes
1. Credit cards can facilitate our lives, but their existence is also like a double-edged sword. If used improperly, blind consumption will only make you more and more expensive. Because of poverty, it is particularly important to use credit cards rationally.
2. To make full use of the interest-free period, pay special attention to the billing date and repayment date. Only by spending after the billing date can you get the longest interest-free period.
What is the most cost-effective way to use a credit card?
There are some tips for using a credit card well. Here are a few points worth noting:
Refuse to use it Minimum repayment amount: If you choose the minimum repayment amount, additional interest will be charged on the unpaid portion. Sometimes it may increase the burden on the borrower.
Choose the installment business carefully: Installment payment relieves the pressure of repayment, which sounds great, but the price of slightly lessening your pressure is more handling fees. If installment payment is necessary, everyone must remember to understand the cost first.
Grasp the best time to swipe your card: Credit cards have a billing date. If you swipe your card on the first day after the billing date, you can enjoy at least a 50-day interest-free period. If you swipe your card on the billing day, you can only enjoy a 25-day interest-free period. By knowing the best time to swipe your card, you can have a longer interest-free period.
Product Origin:
The earliest credit card appeared at the end of the 19th century. In the 1880s, the British clothing industry developed so-called credit cards, and the tourism and business sectors followed suit. However, the cards at that time could only be used for short-term commercial credit, and the money still had to be paid as and when used. Long-term arrears were not allowed, and there was no credit line.
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.
This ends the introduction on how to use credit cards more cost-effectively and how to use credit cards more cost-effectively. Have you found the information you need?