How to use credit card consumption wisely to avoid repeated bank charges

Minefield 1: Deposits are interest-free, but withdrawals are charged

Credit card deposits are interest-free, but withdrawals are charged. TOLL! Not only are overdraft withdrawals charged, but overdraft withdrawals are also charged! The handling fee ranges from 1% to 3% of the withdrawal amount.

Minefield 2: There is no interest-free period for overdraft withdrawals

The reason why many people choose credit cards is because there is a one-month interest-free period for overdraft purchases with credit cards, but consumers When using a credit card, please note that overdraft consumption is not the same as overdraft withdrawal. Not only is overdraft withdrawal not interest-free, but it will also generate interest of 0.05% per day.

Minefield 3: Pay if you exceed the limit

Many credit cards now support credit card swiping beyond the credit limit, which is called over-limit. However, if you do not pay back the over-limit amount before the bill date, there will be an over-limit fee of 5% of the over-limit amount!

Minefield 4: Automatically link repayments

In order to prevent forgetting to repay, many people bind their debit cards to credit cards and automatically link them for repayment. However, related transactions must be completed at least 2 days before the last repayment date, because it takes up to 2 days to successfully verify the related function. Repayment cannot be made within these 2 days. If your last repayment date happens to be within these 2 days, you can Repayment will fail, even if there is sufficient balance in the debit card.

Minefield 5: Repeated repayments

Some people repay manually after setting up automatic linked repayments. They think this is a double insurance. In case of manual repayments, the wrong amount is recorded. There is also automatic repayment remedy. In fact, the system generates a deduction file the day before automatic repayment. If your manual repayment is on the last repayment day and before automatic repayment, repeated automatic repayments will still occur, which often results in overpayment. There is a fee for retrieving the overpayment.

Minefield 6: Returns

When returning goods purchased with a credit card, the money will be refunded to the original card instead of cash. If you have already repaid, overpayment may occur after the refund, and the result is the same as minefield 5.

Minefield 7: Annual fee

Many banks stipulate that annual fees will be charged even if the card is not activated. For example, some cards of CITIC and Minsheng even require two months from the date of approval of the card. You need to swipe the card once to get the first-year annual fee waived. Note that it is the date the card is approved, not the date the customer activates the card. The problem is that the customer will not know the approval date unless they call to ask.

Minefield 8: Loss of Card Protection

Some banks provide loss of card protection for 48 hours or even 72 hours before reporting a loss, but in practice it may be difficult to get a claim. First of all, you cannot claim compensation for transactions based on passwords, and secondly, you cannot claim compensation for the actions of people around you.