Basic knowledge you must know about credit cards

1. About the billing date:

A certain day of each month is your billing day, and the consumption amount in a monthly billing cycle After summarizing, you need to repay before the next repayment date to enjoy the interest-free period. Except that ICBC defaults to the calendar month, basically the bank assigns different billing dates to different users. This is due to the design logic of optimizing the use of funds.

2. Regarding the repayment date:

Only when you repay the amount due for the last bill month before the repayment date can you enjoy the interest-free period. The repayment date is usually after the bill date. Around 20 days, different banks vary slightly, between the 19th and the 25th. If you have difficulty repaying, you should pay at least the minimum repayment amount (usually 5% or 10% of the bill amount), otherwise you will be charged a late payment fee in addition to the daily interest of 0.5% and affect your credit situation.

3. Regarding cash withdrawal:

Withdraw cash from the credit card limit through the counter or ATM. The amount of cash withdrawal does not enjoy the interest-free period. Interest will start to be calculated on the same day, and most banks will also charge There is a handling fee, so try not to withdraw cash unless necessary. In addition, the People's Bank of China stipulates that the daily cash withdrawal limit is 5,000 yuan.

4. Regarding cash advances:

Similar to cash withdrawals, funds are transferred to a debit card in the personal name within the credit card limit. Generally, banks have restrictions on the amount of cash withdrawals and cash advances. The proportion of the credit limit varies slightly.

5. About installment:

1) Consumption/bill installment: The consumption/bill amount will be included in the bill repayment in subsequent months in installments, and a certain interest or handling fee will be charged. Some Interest-free or fee-free shopping installments are actually hidden in the product price.

2) Cash installment: Withdraw the available balance to a personal debit card and include it in installments for bill repayment in subsequent months. A certain amount of interest or handling fee will also be paid.

6. About the credit limit:

1) Fixed rating: The bank determines the overdraft amount you can give you based on your assets and credit situation. The bank may also change the amount based on your credit situation. Adjust your fixed limit based on your card situation.

2) Temporary quota: a quota proposed by you or raised by the bank on its own initiative and available within a certain period of time. More and more banks, such as China Merchants Bank and China Construction Bank, can now make self-service withdrawals through online banking.

7. Regarding the minimum repayment amount:

If you have difficulty repaying the full amount before the repayment date, you should repay the minimum repayment amount (usually 5% of the bill amount or 10%), otherwise it will be regarded as a default, and late payment fees will be charged in addition to the daily interest of 0.5%, which will affect your credit status.

8. Regarding annual fees: Most banks now implement a policy of waiving annual fees in the first year (except for platinum cards) and waiving annual fees in the following year after a few transactions.

9. Regarding the full penalty interest:

If the full amount is not repaid by the final repayment date, the bank will charge interest at the standard of 0.5%. Note: Except for ICBC For individual banks, most banks calculate interest based on the bill amount rather than the outstanding amount, and the interest is calculated from the recording date of the transaction amount rather than the bill date, so you should try your best to repay in full to avoid being charged high interest rates.

10. Regarding credit reports:

Commercial banks will report your personal information, loan information and repayment status, credit card information and card usage status to the Credit Center of the People's Bank of China on a regular basis.

When you apply for a loan, credit card, etc., the bank will check your credit report and will generally deny it if there are overdue payments. According to the latest policy, bad credit records will be retained for five years. So cherish your credit and repay your debt on time.

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