What is a credit card and what is its use?

(1) what is a credit card?

credit card is a kind of bank card, which is called credit card in the industry. It has the function of overdraft consumption and interest-free for a certain period of time. To put it bluntly, credit card is a simple loan service provided by banks to customers. Customers can use credit cards to overdraw their consumption before making repayment.

(2) credit card limit: the overdraft limit approved by the bank according to the financial resources, status, credit and other information of the credit card applicant, within which the cardholder can freely overdraw and spend.

(3) Differences from debit cards

The biggest difference between a credit card and a debit card is that it can be overdrawn within a certain amount, while a debit card can only be used if it is deposited first.

(4) how long is the validity of the letter of credit?

credit cards have a certain term. After the expiration, the bank will re-examine and renew the loan for the customer. The validity period of credit cards is different, depending on the bank and card type, usually 3 to 5 years. The validity period is printed on the front of the card in the form of month/year.

(v) what is a credit card security code?

the credit card security code is the security code that cardholders need to enter when shopping online. Banks use it to verify the identity of customers. So the security code is very important and should be kept secret. Theoretically, only the issuing bank and the cardholder know the security code!

(VI) Functions of credit cards

The most fundamental function of credit cards is overdraft, and all other businesses are derived from overdraft. Overdraft consumption, overdraft cash withdrawal, installment payment, cash installment and so on.

credit card statement

the billing cycle of a credit card is one month. Different banks have different billing cycles. From the 1st of last month to the 1st of this month, and from the 21st of last month to the 21st of this month. Customers can also specify it themselves, but a cycle is one month. There are several terms that can be explained here:

bill date, expiration date of credit card cycle, printing transaction list of the previous cycle and details of arrears. Start the next cycle the next day.

the last repayment date, generally about 25 days after the bill date, is the last repayment period of all the arrears in the previous period.

eight. Interest-free period

The second feature of a credit card is that it has a certain interest-free period, that is, after overdraft consumption, it is only necessary to repay the arrears before the last repayment date. During this period, the bank does not charge any interest. In other words, after the last repayment date, the bank will charge interest at a daily interest rate of .5%.

the interest-free period generally ranges from 25 days to 56 days, depending on the bank, scale and month. Only the overdraft can enjoy the interest-free period.

(9) Can credit cards be overdrawn for cash withdrawal?

credit cards can be overdrawn, and of course they can also be withdrawn. You can withdraw money through ATM machines, bank counters and other channels. However, banks do not encourage people to use credit cards to withdraw cash, because credit card overdrafts are not interest-free and will charge a certain handling fee.

so, unless absolutely necessary, don't use a credit card to overdraw cash. If you overdraw, please return it in time, otherwise the overdraft fee will be high.

(1) Annual fee for credit cards

Most credit cards issued by banks charge a certain annual fee, ranging from more than 2 yuan in 8 yuan, and the annual fee for high-end cards is higher. Usually, it is the first year for a customer to apply for a card, and the bank does not charge a handling fee, starting from the following year. General banks have an annual fee-free policy. The most common thing is to spend more than a specified number of times each year, or to exceed a certain amount, and exempt the annual fee for the following year. Related questions and answers: What is the meaning of credit card face-to-face interview? The meaning of credit card face-to-face interview is to let the applicant personally go to the bank outlet to sign. Face-to-face interview is generally a process that people who apply for credit cards online need to go through. There are two ways to face-to-face interview: 1. After receiving the credit card, the applicant needs to bring the credit card, ID card and other materials required by the bank. 2. I haven't received a credit card, but I have passed the preliminary examination and need to bring my ID card. Extended information 1. Remember that the billing date and repayment date of the credit card are not the same day. The billing date means that the issuing bank will regularly summarize and settle all the transactions and expenses in your credit card account in the current period every month, calculate the total amount owed and the minimum repayment amount in the current period, and send a statement for you. This date is the billing statement of your credit card. Repayment date means that the interest-free repayment period varies according to the regulations of each bank, and the shortest is from the billing date to the final repayment date, and the longest is from the day after the billing date to the final repayment date of next month. If the billing date is 1 day and the final repayment date is 2 days, the shortest is 2 days and the longest is 5 days. Second, how to deal with the lawsuit filed by the bank when the credit card is overdue? The steps to solve the lawsuit filed by the bank for overdue credit cards are as follows: 1. The cardholder takes the initiative to contact the bank and guarantees that he will definitely pay back the arrears; 2. If the bank withdraws the lawsuit, the cardholder should take the initiative to discuss the repayment with the bank and discuss the way and time of repayment; 3. Make a repayment plan and repay the arrears in the agreed time and manner. 3. Precautions for the use of credit cards 1. Credit cards, also known as debit cards, are a non-cash transaction payment method and a simple credit service. Many friends don't know what precautions novices have when using credit cards. Let's take a look. 2. The full repayment on time will be free of interest, and the minimum repayment on time will be charged at a daily interest rate of five ten thousandths, starting from the consumption bookkeeping date. Overdue repayment, in addition to the above interest, there are late fees, knowing two important dates of credit cards. 3. If you don't know the billing date (also called reconciliation date) and the final repayment date of each month, you can call customer service. The number of the credit card center is on the back of the card. 4. Ask the bank to send the statement on time every month. If it is inconvenient to receive paper letters, let the bank send an email instead to find out the minimum handling fee for each credit card withdrawal.