Can I use a credit card to buy a house?

Credit cards can be used to pay for the house, and it is not illegal; paying for the house with a credit card can be said to be convenient, eliminating the need to apply for a loan from a bank or ask others and the trouble of institutions borrowing money.

The money in the credit card is a credit fund given to you by the bank. The so-called "use it in vain" means that as long as you use the credit card during the interest-free period, you can enjoy zero interest for overdrafts. Cardholders are provided with a certain buffer period.

Except for a few banks that set card swiping limits for real estate consumption, credit cards from most banks can be used to pay down payments, but there are still some issues that need to be paid attention to. Use a credit card to pay the down payment for a house. Since the down payment for a house is generally large, multiple credit cards will be required to meet the payment needs.

So, if you want to use a credit card to pay the down payment for a house, you need to hold multiple credit cards.

What should you pay attention to when buying a house with a credit card?

1. Credit card limit increases will be affected.

If the home buyer is going to use a credit card to pay the down payment, the credit card limit increase may be affected. The down payment for buying a house is also a large amount, but the home buyer should not use multiple cards at the same time when paying the down payment. Because for such large-amount no-points transactions on multiple cards, the bank may suspect that the customer is cashing out and will strengthen risk control. If there are overdue or other problems, it will not be so easy to apply for a limit increase in the future. If you encounter a more serious bank It may also be reduced.

2. Be careful when using the temporary limit of your credit card.

Many credit cards can adjust the temporary limit. When buying a house with a credit card, home buyers must not blindly use the temporary limit, because the temporary credit limit on a credit card cannot be extended on a recurring basis or in installments and needs to be used once upon expiration. If you cannot repay in full when due, it is recommended not to apply for a temporary increase.

3. The repayment pressure is high in the short term, which can easily lead to overdue payments.

For those who buy a house with a credit card, whether it is a credit card or a mortgage, they need to repay it on time. If you apply for credit card bill installments after swiping the card, the repayment pressure will increase in the short term. Failure to repay in time will easily lead to overdue payment, and you will need to pay high interest and late fees. The most important thing is that it will affect the personal credit of the home buyer. Therefore, you must have a clear understanding of your own financial situation before making payment, and remember to blindly swipe your credit card. .

4. It may not be possible to pay the down payment with a credit card for a second-hand house.

If the home buyer plans to buy a second-hand house, he cannot use a credit card to pay the down payment when paying. When buying a second-hand house, the down payment is usually paid by bank transfer, so Everyone will no longer be able to use credit cards, and some areas with strict requirements clearly stipulate that developers are not allowed to use credit cards to pay down payments. Therefore, using credit cards to pay down payments is also subject to local policy restrictions and is not universal.

5. There are no points for buying a house with a credit card.

For home buyers, there are no points when using a credit card to buy a house. Credit card points cannot be accumulated for this type of consumption transaction. In addition, buying a house with a credit card will also have a certain impact on subsequent credit limit increases. Abnormal large-value transactions involving swiping a card to pay on a capping machine are easily considered by banks to be risky transactions, and subsequent applications for a credit card limit increase are unlikely to be successful.

Can I use a credit card to buy a house?

Generally, only the down payment of a first-hand house can be paid with a credit card, but you need to pay attention to the following issues: 1. Some local banks do not support the down payment of a credit card to buy a house. . 2. No points will be accumulated when buying a house with a credit card. 3. Single currency++ credit cards cannot be used to swipe the card. 4. After using a credit card to buy a house, you need to repay it on time. If it is overdue, it will affect your personal credit score.

Credit cards, also called credit cards, are credit certificates issued by commercial banks or credit card companies 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 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 , deposit and withdrawal of cash and other full or partial functions of electronic payment cards [1-2]. On December 1, 2017, the "English Translation and Writing Standards in the Public Service Field" was officially implemented, stipulating that the standard English name of credit cards is CreditCard.

Credit card consumption is a non-cash transaction payment method. There is no need to pay cash when consumption, and repayment will be made on the billing date (BillingDate).

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

Starting from January 1, 2021, the credit card overdraft interest rate will be determined independently by the card issuer and the cardholder through independent negotiation, and the upper and lower limit management of credit card overdraft interest rates will be cancelled. The daily interest rate is 0.7 times 5/10,000).

On May 25, 2021, the Supreme People’s Court issued and implemented the “Regulations of the Supreme People’s Court on Several Issues Concerning the Trial of Bank Card Civil Cases”.

Can a credit card be used to buy a house?

Generally, credit cards cannot be used to buy a house.

According to the Beijing Youth Daily, since August 2019, under regulatory requirements, many bank credit card centers have issued announcements to strengthen the control of real estate merchant transactions. Generally speaking, overdraft credit cards are banned when buying houses from developers or intermediaries, and payment of property fees and time-share housing (rental housing) are mostly subject to transaction limits, with a single transaction not exceeding 15,000 or 30,000 yuan. In fact, regulatory authorities have always strictly prohibited consumer loans, personal business loans, credit card overdrafts and other funds from being used for home purchases and stock speculation.

Strictly controlling the purchase of houses with credit cards has sent us the most direct signal. The policy of "houses for living, not for speculation" is still very clear, and it is difficult to make substantial changes in a short period of time. At the same time, the regulatory actions on the domestic real estate market may have a longer duration, which may further prolong the stable fluctuations of the domestic real estate market. However, the differentiation of the real estate market may still be further intensified.

It should be noted that for the measures to strictly control credit card house purchases, stabilizing housing prices is one aspect. On the other hand, it may be due to factors such as the need to improve credit card risk control capabilities in recent years. It can be seen that the measures to strictly control credit card house purchases will help standardize the behavior of arbitrary consumption and arbitrage speculation by credit cards. It will also help enhance the risk control capabilities of credit cards in the future and reduce the probability of systemic risks. Thinking from the perspective of investors who purchase houses with credit cards, if they strictly control the behavior of purchasing houses with credit cards, they will still be affected by more or less impacts. However, for intermediaries, there may still be some disguised ways to purchase houses. After all, it is still difficult to completely crack down on the phenomenon of credit card house purchases, and the phenomenon of market speculation and arbitrage may still exist partially.

However, there are still certain risks involved in purchasing a house with a credit card. For example, whether the investor can repay in time, whether the investor's personal credit is affected, etc. At a time when the demand for credit is increasing, people's emphasis on credit is also continuing to increase. Perhaps, thinking from a long-term perspective, standardizing credit card usage habits and rationally guiding credit card consumption behavior will help enhance the risk control capabilities of credit cards, avoid unnecessary systemic risks, and further strengthen the "house for living, not for speculation" "The policy sets the tone and attitude.

That’s it for the introduction of whether a credit card can buy a house.