What are the pitfalls of credit cards?

1. High interest and minimum repayment amount. "Minimum repayment amount" means that when the cardholder is unable to repay all due amounts, he or she can repay according to the minimum repayment amount stipulated by the card issuer. Generally, the minimum repayment amount is 10% of the consumption amount and other payables. When the repayment period has not expired, cardholders who enjoy the minimum repayment amount will be charged high interest by the bank. Cold dissection of the minimum repayment amount: The expected annualized interest rate of the "minimum repayment amount" is as high as 18, which is the highest interest rate among all installment business types. The setting of the bank's minimum repayment amount can help cardholders who cannot repay on time to a certain extent, but in essence, the repayment amount is divided into two installments. The first installment is to repay a small part of the minimum on the last repayment day. The remaining balance will be paid off on the next bill payment date. It is recommended that consumers try to avoid choosing the minimum repayment amount when they cannot afford the repayment. 2. It’s easy to cancel fully automatic installment bidding. "Full automatic installment" is a special setting for credit card limits. As long as each credit card consumption reaches the agreed amount, the bank will automatically process this business as an installment business. Some consumers clicked on automatic installment when applying for a card. Even if they spend 10 yuan on online shopping, the bank will automatically pay for it. Needless to say, in terms of rates, automatic installment business requires very high rates. 3. Interest-free loans are really expensive. Among the many bank promotions, interest-free loans are provided. Its essence is to promote the installment payment business to cardholders, but the tool becomes a cash limit, and the rates are often higher than ordinary installment payment fees. The reason is that the investment of consumer funds in this kind of installment business is uncertain and the risk is higher than that of traditional installment business, so the handling fee is slightly higher. In fact, high-quality credit card customers can indeed enjoy interest-free loan limits, but they are just disguised as high handling fees. The installment payment method adopted by the bank can be divided into 6 to 24 installments. Although the number of periods is different, the handling fee for each period is based on calculation. The expected annualized interest rate that the cardholder really has to pay is 16.22. 4. There is still a handling fee for early repayment. Most banks stipulate this in their installment payment service terms: If a cardholder applies to pay off the outstanding installment balance in advance, the cardholder must pay the outstanding installment balance and handling fees in one lump sum after approval by our bank. Such early repayment is obviously meaningless.

What are the pitfalls of credit cards?

1. High interest and minimum repayment amount. "Minimum repayment amount" means that when the cardholder cannot repay all due amounts, he or she can repay according to the minimum repayment amount stipulated by the card issuer. Generally, the minimum repayment amount is 10% of the consumption amount and other payables. When the repayment period has not expired, cardholders who enjoy the minimum repayment amount will be charged high interest by the bank. Cold dissection of the minimum repayment amount: The expected annualized interest rate of the "minimum repayment amount" is as high as 18, which is the highest interest rate among all installment business types. The setting of the bank's minimum repayment amount can help cardholders who cannot repay on time to a certain extent, but in essence, the repayment amount is divided into two installments. The first installment is to repay a small part of the minimum on the last repayment day. The remaining balance will be paid off on the next bill payment date. It is recommended that consumers try to avoid choosing the minimum repayment amount when they cannot afford the repayment. 2. It’s easy to cancel automatic installment bidding. "Full automatic installment" is a special setting for credit card limits. As long as each credit card consumption reaches the agreed amount, the bank will automatically process this business as an installment business. Some consumers clicked on automatic installment when applying for a card. Even if they spend 10 yuan on online shopping, the bank will automatically pay for it. Needless to say, in terms of rates, automatic installment business requires very high rates. 3. Interest-free loans are really expensive. Among the many bank promotions, interest-free loans are provided. Its essence is to promote the installment payment business to cardholders, but the tool becomes a cash limit, and the rates are often higher than ordinary installment payment fees. The reason is that the investment of consumer funds in this kind of installment business is uncertain and the risk is higher than that of traditional installment business, so the handling fee is slightly higher. In fact, high-quality credit card customers can indeed enjoy interest-free loan limits, but they are just disguised as high handling fees. The installment payment method adopted by the bank can be divided into 6 to 24 installments.

Although the number of periods is different, the handling fee for each period is based on calculation. The expected annualized interest rate that the cardholder really has to pay is 16.22. 4. There is still a handling fee for early repayment. Most banks stipulate this in their installment payment service terms: If a cardholder applies to pay off the outstanding installment balance in advance, the cardholder must pay the outstanding installment balance and handling fees in one lump sum after approval by our bank. Such early repayment is obviously meaningless.

What are the scams in applying for a credit card?

Using the overdraft function of the card can not only meet the short-term needs of the cardholder, but also provide a lot of convenience for the cardholder's consumption. Out of convenience or based on considerations about the success rate and limit of card approval, many people choose to apply for credit cards through intermediaries. During this period, there are many traps. So, what are the pitfalls of applying for a credit card? What are the pitfalls of applying for a credit card? There are many traps when applying for a credit card. For example, you will be asked to pay a card application fee when applying for a card, and there will be a deposit and card opening fee when activating it. However, there are no additional fees such as handling fees when applying for a credit card. At the same time, all those who ask for important information such as credit card number, expiration date, credit card security code, etc. on the pretext of "using a card to apply for a card" are all scammers. In fact, the application and activation of most credit cards are free. Even if a few special cards will incur a cost during the application process, they will be paid through credit card repayment after the credit card is activated. Therefore, if you encounter charges during the credit card application process, you must verify it by calling the customer service number to avoid being deceived. When applying for a credit card, you must go through formal channels. Never look for informal intermediaries just for the sake of unreal credit card approval rates and high credit limits. As long as you have a stable job and no bad credit history, there is no problem in applying for a credit card that suits you.

That’s it for the introduction to credit card traps.