What are the basic knowledge of credit cards? Understand credit cards in 2 minutes

1. White households and pure white households

White households refer to users who have applied for a credit card but did not apply for the card in the end. The time must be more than half a year. . In layman's terms, it's like someone who has applied for a credit card, but the card issuer did not issue a card for them. This is a white account. As for pure white households, they refer to people who have never applied for a credit card or loan. Their personal credit is blank. Just like many students nowadays, they have never touched anything related to credit cards. These are pure white households.

2. What is the difference between credit report, personal credit report and credit report?

In fact, these three are the same thing, but they have different names, but they are all collectively called credit information. As for credit information inquiries, you can check it with your ID card at the local People's Bank of China. Your credit report is not only related to your credit card limit, but also related to the loan limit you will need to buy a car or a house in the future. The higher your credit report, the higher the limit you will get.

As for how to improve your credit score, as long as you have no violations of credit card usage and maintain good credit card transaction records, your credit score will basically increase.

3. Interview

The interview is to go to the designated place to sign, or to obtain a credit report, and to take photos. After the first interview, go to the designated place to collect the card. There is no need for an interview, just submit the information. Send it to the bank, then unload the card and pick it up at the designated location.

Remember, you must bring your ID card to the visa interview in person. It is recommended to wear something more formal before going, not slippers, shorts, and a vest, otherwise the card is very likely to be rejected. When the bank asks you to bring what documents you need for the interview, you must ask this clearly in advance. Usually it is the person and his or her ID card. If the bank requires proof of employment and other information, just prepare it yourself before you go there; if you are signing at a different location, it is best to prepare these documents in advance, otherwise it will be easy to make a second trip.

4. Card blocking

Card blocking is actually the bank's credit risk control on you. Generally, if it is mild, it will be reduced, and in serious cases, it will block the card.

Under what circumstances will the bank take measures to block your card?

1. The credit card has been empty for a long time

2. Cash withdrawals are very serious

3. It is currently overdue or has been overdue several times before

4. Use overseas POS machines

5. Credit card repayment

6. Integer and partial transactions

7. Swipe credit card during non-business hours

The above seven points are all very easy to cause the card to be blocked. If it is minor, it may be a reduction in the limit. Therefore, when the credit card is reduced for no reason, you have to reflect carefully on whether it is used in violation of regulations, otherwise it is really easy to get the card blocked. , and the impact on your credit report.

Basic knowledge of credit cards

1.

Credit card design

2.

Basics of credit cards Functions

3.

Categories of credit cards

4.

Advantages and disadvantages of credit cards

1. Credit cards Card design

If credit cards are discussed from the red machine, they can be divided into two different design types: main card and special-shaped card. The two credit cards differ greatly in the size of the card.

Main card: A credit card is generally a special carrier plastic card with consumer credit that is 1 mm long, 1 mm wide, and 1 mm thick. It is issued by the bank to individuals and organizations, and can be used to shop, consume, and deposit and withdraw cash from the bank. It is in the form of a card with the name of the issuing bank, validity period, number, cardholder name, etc. printed on the front and a magnetic card on the back. strip, signature strip.

Special-shaped cards: Due to individual needs, printing is not limited by size, resulting in many "weird" cards appearing in various countries around the world. We call these cards special-shaped cards. Among them, cards with geometric shapes such as rectangles, squares, triangles, ovals, circles, etc. are called "non-standard cards"; some special-shaped cards with animal shapes and doll shapes are called "quasi-abnormal cards". Relatively speaking, the production process of "quasi-shaped cards" is more difficult than that of geometric objects.

2. Basic functions of credit cards

Credit cards are issued to cardholders by banks or credit card companies based on the user’s creditworthiness and financial resources. Cardholders do not need to pay cash when using credit cards to make purchases. Repayment will be made on the billing date (English: BillingDate).

The various uses and functions of credit cards are endowed by the credit card issuing banks based on social needs and internal operating capabilities. Although the functions of credit cards issued by various banks are not exactly the same, all bank credit cards have Basic functions such as shopping and consumption, transfer settlement, savings, micro-credit, exchange settlement, and installment payments.

Shopping consumption function

When the cardholder pays for goods and services that exceeds the balance of his credit card account, the card-issuing bank allows the cardholder to Make a short-term overdraft within the limit. Essentially, this is consumer credit extended to customers by the bank that issued the credit card. Therefore, we say that credit cards have consumer credit functions. Credit card holders are different from customers who use other settlement methods. When applying for a credit card, customers must go through the bank's credit investigation and have a certain ability to repay debts. Since the amount of credit card overdrafts accounts for a small proportion of credit card transaction amounts, and at the same time, banks have a set of measures to prevent and recover overdraft risk losses, therefore, although credit card overdrafts can expand social consumption levels with the function of consumer credit to a certain extent, they It does not necessarily lead to the expansion of social consumer credit. The interest charged by the banks that issue credit cards on credit card overdrafts is higher than the expected annualized interest rates on bank loans during the same period. This shows that although the card-issuing banks provide overdraft facilities to credit card holders, they also use expected annualized interest rate leverage to restrict them.

Transfer settlement function

After shopping in designated shopping malls and restaurants, credit card holders do not need to pay in cash, but only need to use credit cards for transfer settlement. Transfer settlement is the most important function of a credit card. The transfer and settlement function of credit cards can provide the society with the widest range of settlement services, facilitate the purchase and sale activities of credit card holders and service industries such as shopping malls and restaurants, reduce the use of funds and currencies in the society, and save social labor. Therefore, it has gained popularity in our country. great importance.

Saving function

Credit card holders can handle deposit procedures within a wide range of savings outlets (or business halls, offices) designated by the bank that issued the credit card. It is more convenient to use a credit card to handle deposits and withdrawals than using a savings passbook. It is not restricted by the deposit location and deposit savings bank. It can be deposited and withdrawn at all branches of the card-issuing bank and affiliated institutions, which greatly facilitates credit card holders. Savings activities have increased residents’ enthusiasm for saving. At the same time, when withdrawing cash with a credit card, the bank must examine the cardholder's ID card and verify the cardholder's signature, which will help the bank that issued the credit card maintain the security of the cardholder's funds.

Microcredit functions

Microcredit, first of all, is a credit loan, which does not require collateral. It mainly solves the financial service problems of low-end customers that traditional banks cannot serve. Its service targets are low-end customers (including productive poor people and micro-enterprises); because of the special nature of the service targets, it requires credit loans without collateral; because it is a credit loan, the amount must be small enough to control risks The extent of microfinance; internationally, the amount of microfinance is generally measured by multiples of local per capita GDP. According to the microfinance experience managed by the exchange center, it is generally no more than 5,000 yuan in rural areas and no more than 20,000 yuan in cities; Because it is a small-amount credit loan, it requires a loan management model that is different from that of ordinary banking institutions; at the same time, because the operating costs and risks of small-amount credit loans are high, it is necessary to charge higher loan interest that can make up for the costs and risks; finally , due to its particularity, also requires relatively flexible policies and practices in financial supervision.

Bank loans are still the main channel for financing for small and medium-sized enterprises. However, for these small and medium-sized enterprises with high operating risks, unclear development prospects, and difficulty in obtaining loan mortgage guarantees, it is difficult to obtain bank loans. Even if you can get this loan, you may have missed the business opportunity.

Credit Card Cash Withdrawal Function

With the gradual popularity of credit cards in recent years, various banks have launched "Credit Card Cash Withdrawal" services, but this service is by no means intended to allow consumers to withdraw money. Come to buy a house, but for emergency needs. Many citizens have the experience of borrowing money from others, and the fee is usually not very large, maybe one or two thousand, or up to tens of thousands. But the feeling of borrowing money is not pleasant, and it is not worth seeking a bank loan for this small amount of money. Therefore, from the perspective of providing customers with humanized services, various banks have launched the "Cash Withdrawal by Credit Card" function. As long as it is not a large amount of money, you can withdraw it directly at the counter or an ATM, which is very convenient.

Exchange settlement function

When a credit card holder travels or goes on a business trip and needs to collect money abroad, he can use the card to go through the deposit procedures at a non-local joint bank network institution, and the bank will The funds are remitted back to the local cardholder's account, and the card can be used to withdraw funds at member banks in various locations. You can also transfer the money to another place with the card, then pay with the card and handle the transfer settlement.

Instalment payment function

Credit card installment payment means that when the cardholder uses a credit card to make large purchases, the card-issuing bank pays the merchant a one-time payment for the goods (or services) purchased by the cardholder. ) consumption funds, and according to the cardholder's application, the consumption funds will be deducted from the cardholder's credit card account in installments, and the cardholder will repay according to the monthly account amount.

Most domestic banks have credit card installment services. Installments are generally divided into shopping mall (POS) installments, "mail order installments" and "bill installments" conducted through the Internet, mail, etc. depending on the occasion. ".

3. Categories of credit cards

Credit cards are divided into credit cards and quasi-credit cards. Credit cards refer to cards issued by banks and grant cardholders a certain credit limit and holder. A credit card in which the cardholder can consume within the credit limit and then repay later; a quasi-credit card refers to a credit card issued by a bank, and the cardholder deposits a certain amount of reserve fund as required. A quasi-credit card with an overdraft within the credit limit. The so-called credit card generally refers to a credit card only. In addition, credit cards are also classified as follows:

(1) According to different card issuers, they can be divided into bank cards and non-bank cards

(1) Bank cards. This is a credit card issued by a bank. Cardholders can shop at the card-issuing bank's special merchants, and can also withdraw cash at any time at any branch of the card-issuing bank or at places with ATMs.

(2) Non-bank card. Such cards can be specifically divided into retail credit cards and travel and entertainment cards. Retail credit cards are credit cards issued by commercial institutions, such as department stores, petroleum companies, etc., which are specially used for shopping in designated stores or refueling at gasoline stations, etc., and are settled regularly. Travel and entertainment cards are credit cards issued by the service industry, such as airlines, travel companies, etc., and are used for purchasing tickets, meals, accommodation, entertainment, etc.

(2) According to the different objects of card issuance, it can be divided into corporate cards and personal cards

(1) Corporate cards. Company cards are issued to various industrial and commercial enterprises, scientific research and education institutions, national party and government agencies, military units, groups and other legal organizations.

(2) Personal card. Personal cards are issued to urban and rural residents, including workers, cadres, teachers, scientific and technological workers, self-employed households and other adult urban and rural residents with stable sources of income. A personal card is applied for in the name of an individual and he/she bears all responsibilities for using the card.

(3) According to the credit status, status and other credit conditions of the cardholder, it can be divided into ordinary cards and gold cards.

(1) Ordinary cards. Ordinary cards are issued to cardholders with average financial strength, credibility and status, and their various requirements are not high.

(2)Gold card. A gold card is a high-end credit card that pays high membership fees and enjoys special benefits. Cards are issued to those with higher credit standing, stronger repayment ability and credit, or those with a certain social status. The authorization limit of the gold card starts from a higher level, and the additional service items and scope are much wider, so the requirements for relevant service fees and security deposits are also relatively high.

(4) According to different repayment methods, credit cards can be divided into credit cards and debit cards

(1) Credit cards. When the card-issuing bank provides bank credit, it is first used as an overdraft, and then repaid or paid in installments. Most of these cards are used internationally. That is to say, the way that cardholders are allowed to pay off their credit card accounts without deposits is "spend first, deposit later". Most of these cards are used internationally.

(2) Debit card. It is a credit card issued by a bank that allows you to deposit money first and spend later. When applying for a credit card, cardholders need to deposit a certain amount of money in the card-issuing bank for backup. Cardholders need to use the deposit balance as a basis when using the card. Overdrafts are generally not allowed. Credit cards issued by banks in our country are basically debit cards, but they allow cardholders to make good-faith, short-term, and small overdrafts for consumption purposes. Different limits are stipulated according to different card types, and repayments must be made within the specified period. , while paying interest. So, essentially a debit card with some overdraft functionality.

(5) According to the different circulation scope of credit cards, they can be divided into international cards and regional cards

(1) International cards. An international card is a credit card that can be used outside the country of issue and is accepted worldwide. The five major overseas groups (MasterCard, Visa International, American Express, JCB and Diners Club) issued MasterCard, VISACard, American ExpressCard and JCB respectively. (JCBCard) and DinersClubCard are mostly international cards.

(2)Regional card. A regional card is a credit card that can only be used within the issuing country or within a certain region. Most of the various credit cards issued by commercial banks in my country are regional cards.

4. Advantages and Disadvantages of Credit Cards

Advantages

Compared with ordinary bank savings cards, the most convenient way to use credit cards is that they can be used without cash in the card. For ordinary consumption, in many cases it is enough to repay the consumption amount on schedule.

1. You can use overdrafts without deposits, and you can enjoy an interest-free period of 20-56 days for on-time repayment without any interest charges (most banks will charge an interest of 50,000 cents on the day of cash withdrawal. There is also a 2% handling fee. ICBC cash withdrawals are free of handling fees and only charge interest);

2. Swiping the card when shopping is not only safe and convenient, but also provides points as gifts;

3. You can enjoy discounts when using the card at the bank's special merchants;

4. Accumulate personal credit and add integrity records to your credit file, which will benefit you throughout your life;

< p>5. Accessible across the country, you can withdraw money or make purchases by credit card at ATMs and POS machines with the UnionPay logo; (Note: Credit cards are only suitable for consumption, and it is best not to withdraw cash. The handling fee for cash withdrawals is very high, which is not cost-effective)< /p>

6. Spend by swiping your card, collect existing points with some credit cards, and enjoy various discounts and lucky draws throughout the year, allowing you to always be surprised by just using your card. (Most credit card online payments do not have points, but online shopping payments are very convenient and fast);

7. Free monthly mailing of statements, allowing you to transparently control every consumption expenditure; (now promoting green environmental protection, you can Cancel paper statements and change to electronic statements)

8. The unique supplementary card function is suitable for couples to manage finances together or control their children’s financial expenditures;

9. The free choice of one card and dual currencies is available all over the world. Overseas consumption can be repaid in domestic RMB;

Telephone or 5-digit short number starting with 9 is available 24 hours a day. Loss reports are effective immediately, and there is no risk of losing the card. ;

11. Have validity period: It is known that domestic credit cards are generally valid for three or five years.

12. Use third-party platforms (the domestic platform that supports credit card bill management is mainly Jujindou) to conduct business cooperation and provide preferential services to cardholders.

Disadvantages

The invention of credit cards is like a double-edged sword, which can solve the temporary economic crisis, but the purpose of banks issuing credit cards is to make money. Once the interest-free repayment time is exceeded, , a high amount of interest will be charged, usually 50,000 per day.

1. Blind consumption

Swiping a card is not like spending money one by one like paying with cash. Once you swipe it, you will feel nothing, just a few numbers, which leads to blind consumption and spending money like this. Running water.

2. Excessive consumption

Installation for laptops, digital cameras, and smartphones. While enjoying your favorite items in advance, you must also consider whether you are able to repay them.

3. High interest rates

If you do not know how to take care of your credit card and cannot repay the loan as scheduled when the final payment date arrives, the bank will charge you high interest rates. (The minimum repayment for the first month of a credit card shall not be less than 10% of the overdraft amount of the month)[5]

4. An annual fee is required

Credit cards basically have an annual fee. There are fees, but basically there is a policy of waiving the annual fee. For example, China Construction Bank only needs to swipe the card three times a year to waive it; but if you do not swipe the card the number of times specified by the bank in a year, an annual fee will be charged.

5. Credit card fraud

Credit cards are basically password-free by default. This makes it easy for others to steal your credit card when it is lost or stolen, causing unnecessary trouble or loss; but in fact, credit cards can also be used to apply for swiping purchases with passwords - it depends on how you manage your credit cards. Of course, many people do not cancel their accounts after canceling their credit cards due to lack of experience in this area, and are criticized by some Criminals reapply for credit card overdrafts and lose money in vain, which is not worth it.

6. Impact on personal credit record

Long-term malicious debt will naturally affect personal credit record and even be blacklisted by the bank. If you want to borrow money from the bank to buy a house or a car in the future, you will have to There is a possibility of being rejected by the bank.

7. Repayment troubles

You have to go to the bank every month, which is often overcrowded. Not everyone can repay online.

8. Cancellation troubles

Compared with applying for a credit card, users have fewer channels to cancel their credit cards. Logging out is more troublesome.

99% of people don’t know the little popular knowledge about credit cards

Today’s literacy chapter mainly introduces two concepts, one is credit cards and the other is traditional consumer loans. Although both are types of consumer loans, they are essentially different.

Next, let’s introduce it in detail from several angles.

First of all, let’s take a look at the scope of use

1. Credit card: Credit card does not have a special scope of use. You can swipe the card at any place where the card can be swiped, and you can also conduct online transactions. , you can even use it to withdraw cash or something. Anyway, as long as you pay it back on time after swiping it.

2. Consumer loans: When applicants apply for consumer loans from banks, they usually choose the purpose of the loan. That is to say, this type of loan can only be used for special purposes. The scope of use you choose is to buy If you choose a car, you can only buy it for car use. If you choose decoration, you can only use it for decoration. You cannot use it for other purposes.

Next, let’s take a look at the costs of the two.

1. Credit card: This so-called cost actually refers to the interest-free period of the credit card. Many card friends know that the interest-free period of the credit card The period ranges from 18 to 56 days. If you use it well, your overdraft consumption within 56 days will be free. As long as you repay in full on the final payment date, you will not need to pay other fees.

2. Consumer loans: As a loan product, banks charge interest for lending, so there is no interest-free period for consumer loans. As long as you successfully apply for the loan, you will be eligible for the loan starting from the day of borrowing. , the interest must be calculated as agreed, and the repayment must be made on time each period. Borrowing costs cannot be avoided.

Then, look at the convenience of application

1. Credit card: It is very convenient to apply, and there are many application channels. Customers can apply through the bank’s offline branches, the bank’s official website and WeChat , mobile app and other channels to apply. During the application process, you only need to provide proof of employment, income proof and other application materials. The approval time is relatively short, and the results can be available in up to two weeks.

2. Consumer loans: It is troublesome to apply, the process is cumbersome, the approval is strict and the approval time is usually long. Many times, applying for consumer loans requires applicants to provide a lot of supporting documents, and even provide mortgages, guarantees, etc.

Finally, let’s introduce the repayment methods

1. Credit card: There are various repayment methods. If you have more money, you can repay in full. If you feel pressured to repay, you can choose to repay in installments. Or repay according to the minimum amount, which makes repayment more convenient for cardholders.

2. Consumer loans: There is only one repayment method, that is, you must repay on time. If you underpay or fail to repay, you will be blacklisted by the People's Bank of China.

China Merchants Young Card

(No handling fee for the first cash withdrawal every month; 100% of the cash withdrawal limit; double points in the birthday month; only applied by customers under 30 years old)

That’s it for the introduction of credit card common sense.