Beginners using credit cards should note:

1. Liquidated damages will be incurred, which is usually the minimum repayment amount and 5% of the unpaid portion.

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.

Taboos when using credit cards:

1. Repay on time and don’t overdue

The use of credit cards needs to be reasonable and legal. At the same time, novices must also remember the repayment of credit cards. The payment date must not be overdue, otherwise it may affect your personal credit.

2. Cashing out with a credit card is not advisable

Novices will hear examples of cashing out with a credit card in their daily life and work. Although this kind of thing is repeatedly prohibited, it is always undesirable to cash out a credit card. If the bank finds out, you will be punished by reducing the limit and freezing the credit card. In serious cases, it will be dealt with by the public security organs.

3. The handling fee for cash withdrawal is very high

It is okay to use credit card for consumption, but do not use credit card to withdraw cash unless it is absolutely necessary, because the handling fee of credit card is very high and it is not very cost-effective. of.

4. Avoid overdrafts

Credit card limits are limited, and banks will set credit card limits based on the individual's overall situation. Novices using credit cards should avoid exceeding the limit set by the credit card. If it exceeds this limit, it is an overdraft.

Reference for the above content? Baidu Encyclopedia——Credit Card