Why do banks always call you to apply for credit card installment?

With the continuous development of social economy, we will encounter various problems that make us feel very confused in our real life, especially banks will always call us and ask us to solve them. When many friends encounter this problem about credit card installments, they are very confused. Why do banks always call them and ask them to apply for credit card installments? In fact, the purpose of banks doing this is to improve their bank's earning capacity, and the installment process requires relevant handling fees, and it can bind customers for a long time, so this is the bank's main purpose.

I believe that many friends have encountered such a problem in real life, that is, the bank will always call themselves and ask themselves to handle this business, but the most important thing is to handle this business with the bank. The purpose is to make your customers rely on your own bank. In other words, it is to increase customer stability, because many users will get a lot of discounts as long as they apply for credit card installments, and the discounts can make users long-term Time depends on the bank.

Of course, the more important thing is not just that. As long as users rely on their own banks and can use projects such as installment, they will pay a certain handling fee for a long time. If a bank's users can pay themselves handling fees in installments, then the bank's business will be better carried out, and it is likely to bring good income to the bank, which is also very good for the development of the bank, which is Why do banks have to call their customers for a long time to request installments?

To sum up, we understand that when the bank calls us to apply for bank card installment, we must pay attention to these related thoughts, and the bank is here to help us get more during the installment process. There is a handling fee, so we cannot handle installments at will. We must trust our own consumption habits and change our consumption habits.

Why do banks keep calling me to do credit card (debit card) installments?

Bank staff call you to apply for credit card (debit card) installment, in order to earn your installment fee, but not everyone calls, they also have choices, such as those If you often make large amounts of money, especially those who use credit cards (debit cards) to withdraw cash, you should be careful about this. You may be asked to make installments because your credit card (debit card) is subject to risk control by the bank. If you do not make installments, it may It is possible that your card will be blocked or your balance will be reduced. But if you are using the card normally, you can refuse it with confidence. If you do withdraw cash, just make a few short-term installments to let the bank earn some handling fees.

However, credit card (credit card) installments cannot be divided casually, and there are some things that must be paid attention to:

1. Bank credit card (credit card) installments use a fixed principal to calculate the installments. As for interest, most of the real interest rates are between 14 and 18 per annum;

2. Interest accrues as long as you make installments. Some bank credit card (debit card) installments cannot be settled in advance. , early repayment requires full interest.

3. Appropriate installments, but the number of installments should not be too long, which will not only help to increase the amount, but also will not bring too much financial pressure to yourself.

Why are banks now vigorously promoting credit cards?

The reason why banks always promote credit cards is because it is related to performance.

The bank successfully promoted credit cards to customers, and when customers applied for them, their performance increased. And applying for a credit card can help increase user stickiness. Because credit cards often provide many activities, such as redeeming points for gifts, customers participate in the activities, the cooperative merchants make profits, and the bank can also obtain a certain amount of profits. And if customers recommend these activities to their friends, they will also increase their consumer base invisibly.

In addition, many people will associate their bank’s debit card with their credit card for automatic repayment. In this way, customers will continue to deposit money into their debit cards, and savings deposits are also one of the important sources of profits for banks.

Also, banks can make relatively large profits by promoting credit cards to consumers.

After all, many credit cards charge annual fees, and many credit card businesses charge certain handling fees, such as cash withdrawals and installments. If the credit card is not repaid in full within the specified period, the bank will charge interest.

Consequences of overdue credit card:

1. Liquidated damages, usually 5% of the minimum repayment amount and the unpaid part.

2. The interest is high, and the interest is compounded. The interest rate is very scary when the debt is large.

3. Overdue credit records will be stained, resulting in the inability to handle financial needs such as house purchases and loans within the next two years.

4. If the payment is overdue for more than 3 months, and the amount exceeds RMB 10,000, and the bank has failed to pay multiple reminders, you will not only have to bear the repayment, but may also bear criminal liability.

Why are the people at the bank chasing you to apply for a credit card! Give gifts when you apply for a card. What’s the trick behind it?

People from the bank are after you to apply for a credit card and give you gifts. There is no trick to apply for a credit card. The credit card issuance business is one of the basic businesses of the bank. What the bank makes is the procedures and installments of the credit card after you swipe the credit card. Interest and fees on cash advances. So why are banks so keen on promoting credit cards?

The reason why banks enthusiastically promote credit cards is mainly based on benefits

First, credit cards have annual fees. Generally speaking, the monthly fee is at least three yuan, and one card costs one That's thirty-six yuan a year. If you have thousands of cards, this is a huge income.

Second, users are encouraged to use credit cards to make purchases, and fees can be collected from sellers. For example, for a credit card purchase of 1,000 yuan, a processing fee of 50 yuan can be charged from the seller.

Third, if credit card users have deposits, they can make money from the interest rate difference between deposits and loans.

Fourth, credit card users can be charged high interest and liquidated damages if their overdraft is overdue.

Fifth, some banks will use clever pretexts to make illegal money. For example, some banks hire third parties to encourage users to use a financial product called So-and-So Gold through telephone sales. Although it is claimed to be interest-free, it will charge high handling fees, which is converted into interest, which is approximately equivalent to about 18%. It's actually fine.

Credit card business can increase intermediary business income for banks and provide calculated wages for managers

For banks, credit cards can be regarded as a profit weapon for banks. Although there is an interest-free period for consumers on credit cards, as long as they are not overdue, they will basically not incur any fees. However, when making purchases, a certain handling fee has been charged to the merchant, and once it is overdue, the bank will charge high interest rates. . Generally speaking, overdue interest is calculated based on the daily interest rate of 5/10,000, and the annual interest rate is 18.25.

Now banks are vigorously promoting credit card installments. The monthly rate for repayment in 3 installments is about 0.8, which translates into an annual interest rate of 14.34; for 12 installments, the monthly rate is 0.73, and the annual interest rate is 15.79. It can be seen from the 2021 semi-annual reports of major banks that China CITIC Bank's credit card business revenue in the first half of the year was 28.463 billion yuan, China Merchants Bank, 41.662 billion yuan, and the four major banks had more. It can be seen that banks are really making a lot of money with credit cards.

As for the handling staff, the salesperson can also get a high amount of pricing (commission). A credit card is generally priced at 50-100 yuan by banks, and some can reach about 150 yuan. How many cards can be used in a day and a half? , the income is considerable. Therefore, there are situations where bank employees chase people to apply for credit cards.

Questions about applying for a credit card

Many people may have questions. If I apply for a credit card, use the card without installments, and repay the loan on time before the monthly expiration date, then the bank will not Can’t you earn my money and handling fees? In fact, our thinking is too simple. People who often use credit cards know very well that if you often use credit cards, it means that we are already short of funds and use them too often. In addition, the bank calls you to apply for installments. , it is difficult not to make installment payments. Nowadays, many credit cards that provide installment plans for renovations and installment plans for car purchases only earn installment fees, and the rates are not low.

The days when banks chase you to apply for credit cards may be gone forever. If you have a large credit card, you should cherish it, maintain good card usage habits, and maintain a high credit limit. Due to the requirements of regulatory authorities such as the China Banking and Insurance Regulatory Commission, banks are now becoming more and more strict in issuing credit cards. They are not chasing you to apply for a card. Not everyone can apply for a large credit card, that is, a credit card exceeding 50,000. The bank will also strictly review the financial status of the applicant to prevent the card user from not paying back the card after it is issued, and malicious overdraft causing the credit card to become overdue. Some people still need to find someone and connections to apply for a large credit card.

Banks are not charities, and promoting credit cards is just a commercial activity. As a consumer, you still have to decide whether to handle it based on your own situation. Otherwise, without a reasonable concept of consumption, it is easy to become a "card slave".

I haven’t applied for installment service, but why do I always get calls from bank customer service to ask me for installment?

Credit card installment fees are one of the banks’ sources of income. So it is normal to receive installment calls frequently.

Generally, credit card customer service will recommend credit card installment business to you on the grounds that you are a high-quality customer of our bank. In fact, no matter whether you are a high-quality customer or not, we will give you an installment call. Because banks are not charities and they also want to make profits. But installment can indeed alleviate the repayment pressure of cardholders, so it is up to you to decide whether to pay in installments.

In addition, credit card installment customer service will also encourage cardholders to make installments by saying that installment can improve the overall score and help increase the credit card limit. But in fact, a credit card can indeed improve the overall score, but the other party will not promise you whether the credit card will definitely increase the limit after installment. Because credit card installment business is generally outsourced by banks. In other words, although the credit card installment phone number you receive is the official customer service number of the bank, the customer service staff is not the actual credit card customer service number. Credit card installment customer service is contracted by third-party companies, and the salespeople are trained. They have a set of professional speaking skills that can deal with all problems of cardholders. Therefore, they dare not make any promises about whether the credit card limit can be increased. In addition, their income is also linked to performance. The more performance they have in installments, the higher their income will be. The bank only needs to provide the cardholder's information to the third-party entrusted company. After all, banks don’t have that many customer service staff, and the bank’s customer service mainly focuses on answering phone calls from cardholders. There is no more energy to promote credit card installment business to cardholders.

If you feel that credit card installment calls have affected your life. You can call the customer service number on the back of your credit card and ask human customer service to help you block these installment calls, so that you will never receive any installment sales calls again in the future. Of course, if you need installment, you can also proactively contact the bank’s customer service to handle it, or you can handle it yourself through the dedicated credit card software. However, some banks' credit card installment customer service will threaten to induce cardholders to apply for installment. For example, the installment limit can be increased. If the installment is not carried out, the credit card limit will be reduced, etc. In fact, the other party does not have the authority to reduce or increase the limit of your credit card. Their purpose of doing this is to allow cardholders to apply for installments, so as to increase their performance and increase their income. So for this type of installment call, you can just hang up and ignore it. If the other party keeps calling, then you should call the official customer service of the credit card and complain about the credit card installment call. It has already affected your life. In this way, the manual customer service will help you register, and no one will call you to sell installment in the future. .

Under normal circumstances, most cardholders will not complain. When receiving an installment call, you either tell the other party that you don't need it, or you just hang up. After all, credit card installment customer service is also a job, and everyone just needs to respect each other.

This is the end of the introduction to why we promote credit card installment cards.