Can I use a credit card to pay the down payment for buying a house? Theoretically, credit cards can only be used for daily shopping, dining and other daily expenses, and buying a house is not among them. However, banks will not set restrictions on credit card swiping, and almost all developers will be equipped with POS machines. As far as the actual situation is concerned, You can use your credit card to buy a house. However, using a credit card to pay a down payment may not be cost-effective, and there are several issues you need to pay attention to.

1. Credit card down payment fees are easily passed on

Last year, the National Development and Reform Commission and the People's Bank of China jointly issued the "Notice on Improving the Bank Card Swipe Fee Pricing Mechanism" Officially implemented on September 6, the new regulations provide a unified rate for all merchants, cancel the regulations that divide rates according to industry, and charge differentially for debit cards and credit cards. Credit cards belong to the category of credit cards. A service fee of no more than 0.45% is required for card purchases, and there is no cap on a single transaction. For example, if you pay 300,000 yuan by credit card, the service fee = 300,000 yuan X 0.45% = 1,350 yuan.

In actual operation, banks will implement floating interest rates, and the interest rates among banks are also different. Banks with a large number of card issuances usually have more say in setting interest rates. Paying the down payment for a mortgage with a credit card can cost as little as a few hundred or more than a thousand yuan in service fees, which is really stressful for merchants. Therefore, there will be situations where the service fee is passed on to the home buyer, or the home buyer simply refuses to use a credit card to pay the down payment. According to the provisions of the "Bank Card Acquiring Business Management Measures", no matter what the circumstances, it is illegal for developers to refuse to swipe credit cards, or to pass on handling fees to home buyers in disguise, except where there are local policy restrictions. . It is recommended that when buyers decide to use a credit card to pay the down payment, it is best to understand the local bank charges and policies in advance.

2. You cannot apply for bill installments if you pay the down payment with a credit card

Generally speaking, you cannot apply for bill installments if you pay the down payment with a credit card. The short-term repayment pressure is great and it is easy to cause overdue payment. Paying interest and late fees, more importantly, affects your personal credit score. For people with limited financial ability, they must clearly understand their own situation and do not blindly swipe their cards.

3. There are regional and property restrictions for credit card down payments

Usually, the down payment for second-hand houses is paid by bank transfer, and credit cards cannot be used. In addition, some areas with strict requirements will clearly stipulate that developers cannot use credit cards to pay down payments, which is greatly affected by local policies to a certain extent and is not universal.

4. Credit card down payments have an impact on the balance increase

Some people are used to using multiple credit cards to pay down payments. Due to this situation of multiple large transactions without points at the same time, when encountering If you go to a strict bank, they may suspect you of cashing out. If there is an overdue problem when repaying your credit card, it will be difficult to apply for a limit increase in the future. It is recommended to prepare 1-2 large credit cards for payment and avoid using multiple cards.

5. There are no points for real estate transactions

For banks, transactions with real estate, automobiles, and public welfare merchants generate low profits and cannot be scored. It is unrealistic to use a credit card to use points for down payment.

6. It takes a long time to refund the down payment by credit card, which can easily lead to overdue payment

If the house purchase transaction is canceled due to some reasons, the refund time for down payment and deposit paid by credit card usually takes 30 days -45 days. If the final repayment date is met during this period, the home buyer can only advance the repayment by himself. If the payment is not made, it will easily become overdue. The unlucky one will be the home buyer himself.

Can I use a credit card to pay the down payment when buying a house? 7 minefields you must know before swiping your credit card!

7. The down payment using a credit card must be a UnionPay card

The real estate POS machine uses the UnionPay channel and only supports UnionPay credit cards. Single currency and foreign currencies cannot be used. When swiping a card, make sure you know which card you have.

I would like to remind everyone that although credit cards can solve urgent needs, if they are not used properly, they can easily become self-defeating and cause trouble to home buyers. It is best to understand the policies of banks and other institutions in advance and make decisions based on your own circumstances.

(The above answers were published on 2017-05-26, please refer to the actual current relevant home purchase policies)

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