This depends on whether the American Express card you are applying for is single logo or dual logo. If your American Express card has a single logo, it is basically useless in China. If your American Express card bears the dual logos of Express and UnionPay, it can be used domestically and is widely used. Any POS machine with "UnionPay" can be used for transactions.

The U.S. Census Bureau mentioned in its 2007 Credit Card Use Report1 that approximately 70.2% of Americans hold credit cards. In the past ten years, this number has only increased by 2. As an old capitalist power, the concept of advanced consumption is deeply rooted in the hearts of the people.

In the United States, credit cards are more of a way of life. If you don’t have a good credit card, you can only watch others spend nothing on their honeymoons, travel around the world, or just spend money 250 yuan to experience a premium room at The Ritz-Carlton, Nanjing. In the following introductory science article, I would like to talk to you about some basic concepts, terminology and precautions for applying for American credit cards. I hope it can help friends who are about to study in the United States or plan to study in the United States in the future to open the door to a new world of credit cards. .

Credit cards in the United States

Competition is fierce and full of benefits

The extremely high penetration and usage rate of credit cards in the United States relies on the complete financial system and supporting facilities credit system. In such a fully developed market, competition among banks is extremely full and fierce. Only by showing their sincerity (welfare) can they have a place in the market. A typical credit card will give you hundreds or even thousands of dollars when you sign up for the card. Even as a poor student, I receive invitations to open credit card accounts from different banks in my mailbox from time to time (not to mention the middle-class and wealthy groups with annual incomes of hundreds of thousands or even millions of dollars), which also reflects The intensity of competition. Under such competition, it is our cardholders who benefit.

First let’s talk about the annual fee. In the United States, many banks’ introductory cards are free of annual fees, which means that the cost of holding the card is close to zero, and there is no need to stress about spending X amount/X yuan to avoid annual fees. And those credit cards with annual fees (such as the Chase Sapphire Reserve mentioned below) themselves bring huge benefits and high cash rebates that can offset 70% to 80% of the annual fee, and the equivalent annual fee is very low or almost zero.

The second is cashback. Most credit cards have a corresponding cash back amount for each purchase, usually ranging from 1% to 10%. Credit cards with 1% cash back are generally called “beggar cards” and are not recommended in principle. The method of cashback can be simple cash, and you can decide the use of the cashback; it can also be points, which can be redeemed for air tickets, hotels, etc. at a ratio of 1.5 times or even higher. The nearly 0-10% discount on honeymoon travel and premium suites mentioned at the beginning of the article can be redeemed using points leverage.

Finally, there are the benefits that come with credit cards. Generally, the higher-end cards have more benefits. As mentioned earlier, these benefits can often be used to offset a large portion of the annual fee. Take the Chase Sapphire Reserve, for example. The annual fee is $550, which seems prohibitively high. But don’t forget that the credit card itself includes an annual transportation subsidy of $300, a takeout subsidy of $60, a 24% discount on Lyft (equivalent to Didi in China) and an airport lounge membership card. The actual equivalent annual fee is less than $100.

The perfect security legal mechanism behind Xiaosa

Domestic credit cards often require you to enter a transaction password when making purchases to ensure security (this comes from my experience of using my dad’s secondary card a few years ago. If The situation has changed, please feel free to correct me in the comment area), and Americans’ habit is to write down complex passwords with the stroke of a pen. Behind the coolness is not only a highly developed anti-fraud monitoring network, but also a complete legal system. The Fair Credit Transactions Act of the United States stipulates that cardholders are responsible for up to $50 of "unauthorized use" of purchases. In such an environment, everyone naturally tends to use credit cards, and the more you use, the more handling fees the bank charges, and the bank is naturally more willing to protect the rights and interests of cardholders, thus forming a virtuous cycle.

Let’s put aside the booming online payment in China for the time being, because it scorns the existence of credit cards from a high dimension.

Just comparing the credit card usage environment at home and abroad, the United States is indeed more convenient and safer. However, it is precisely for this reason that online payment has been slow to develop in the United States.

Introduction to mainstream banks and credit card recommendations

As mentioned before, the U.S. credit card market is full of flowers, each showing its unique abilities, and different banks have different personalities. Some banks are relatively lenient (such as Discover), while others are extremely sensitive to risky transactions (such as Chase). I will pick some of the most important ones to talk about for you. It should be noted that the credit cards recommended below have better comprehensive benefits, are relatively simple to use, and are suitable for novices to apply for. For credit card veterans, these cards may not be suitable.

Bank of America

Although its name is very domineering (translated as: Bank of America), Bank of America (hereinafter referred to as BoA) is not the largest bank in the United States; Second to Chase. Even so, BoA is still the first choice for many people.

Compared to the "arrogant" Chase, BoA is more user-friendly, and its review of large-value transfers is relatively looser. My first bank card was a debit card co-branded by BoA and New York University. Although the image was ugly, it had the bonus of being an alumni.

Their first credit card is Cash Rewards, which has no annual fee and is moderately difficult to apply for. It comes with a $200 bonus when you sign up for the card, and you can set up a 3% cash back on online purchases, which is very versatile. If you also have a savings account, you can enjoy up to 75% cash back bonus (equivalent to a 3.75% cash back rate). Newbies can try to open their debit card first, deposit a few thousand dollars into the account, and then apply for a credit card. This will have a higher chance of passing