Why some people are reluctant to apply for credit cards

When more and more people no longer like to use credit cards, it shows that many people are more aware and know that they have no control over it. It’s my own consumption, so I choose not to handle it. Of course, credit cards also have many benefits, such as overdrafts when you need money urgently, points earned by swiping the card that can be redeemed for some daily necessities, and many rebate activities in daily life. But for people who don’t have strong self-control, credit cards are a big pitfall, and it’s best not to use them. The main reasons are as follows:

1. The limit exceeds the scope of ordinary daily consumption

The function of the credit card itself is for small daily consumption, but we see that the credit card limit now generally exceeds daily small consumption. Tell me how many people can spend tens of thousands or 100,000 a month? I think except for a very few wealthy people who can spend like this every month, most people don't have this spending ability, but credit cards give so much credit. Why do banks give a credit limit that far exceeds daily consumption? Its purpose is to make money, including cash-out handling fees, credit card handling fees, installment handling fees, interest on the minimum repayment amount, etc. If the bank gives everyone a credit limit of hundreds or thousands, obviously a lot of this money cannot be earned, so the bank needs to give a higher credit limit.

But a higher limit will have a great impact on many ordinary people. Especially because credit cards have billing dates, many people regard the credit card limit as their own deposits, because every month You only need to go through the bill, but if you suddenly encounter unexpected circumstances, such as a reduction in the limit, or a reduction in personal income, it will be completely overdue.

2. The comprehensive credit card rate is much higher than the loan interest rate

Many people think that credit cards have no interest and have a bill-free period, but the prerequisite here is that your card consumption is only a few hundred Or a few thousand dollars, all of which are used for daily consumption and you can repay it every month. However, people who actually use credit cards may reach this status in the first few months. The more they are used in the future, the bill amount will increase. The bigger the money is, the options you can choose to avoid overdue are cashing out by swiping a card, minimum repayment, installment repayment, etc. However, cashing out by swiping a card will sometimes be detected by the bank. At this time, the bank often pretends to give you a chance and allows you to repay in installments. payment, otherwise your card will be blocked, and you have no choice but to make installments. In these cases, no matter which method is used, fees will be charged, and if you calculate it, the comprehensive rate has exceeded the annual interest rate of 18 , this interest is actually almost the same as that of online loans. This interest is several times higher than that of a bank mortgage. It can be seen that credit cards are not without interest. On the contrary, the interest is relatively high, but the method of credit card interest is relatively hidden. , most people just don’t know.

3. Processing is troublesome and overdue collections are serious

In fact, people in modern society have become lazier and lazier. They need to fill in a lot of information when applying for a credit card, but today’s young people only need to use It is much more convenient to open Huabei with Alipay, so many people would rather use Huabei than a credit card. After all, the functions are similar.

Of course, there are also some people who don’t use credit cards because they are afraid of being collected after the due date. These people will not use all credit products. After all, the feeling of being collected is uncomfortable, and they are not willing to negotiate with the bank. deal with.

Why do young people like to use Huabei but not credit cards?

Alipay has developed very rapidly in China in recent years. Everyone knows about it. Ant Huabei in Alipay is loved by many young people, and they even no longer use credit cards. What is the reason? What is the reason?

Credit card applications are generally the same for all major banks. To apply for a card, you must have proof of employment, that is, you must have a stable income or a certain amount of deposits in the bank. Some banks also require proof of assets. .

Ant Huabei only needs an Ant credit score of 600 or above to get a consumption limit ranging from 500 to 50,000 yuan. As long as you have a good credit record on Alipay, no matter who you are or what kind of society you have. status, you can open Ant Huabei for free.

With the development of mobile payment, young people nowadays basically do not carry cash when they go out. A smartphone can solve all problems. The emergence of Ant Huabei can exactly meet this demand.

And some student groups do not have a fixed source of income, so there is still a certain gap in realizing "spend tomorrow's money and realize today's dream". However, the newly opened Ant Huabei quota is not very large, so for the time being, The group is relatively friendly to students who are on a tight budget.

More and more people don’t like to use credit cards. Why?

I also have friends like this. They liked to use credit cards at first, but then they fell into a vicious cycle. They basically spent money every month, so in order to prevent themselves from spending money randomly, they simply didn’t use credit cards. . To put it bluntly, a credit card is an overdraft of our next month's salary. The purpose is to facilitate the bank's capital flow and consumption. However, many things have happened in the past two years that make people feel powerless and helpless, and some people have faced this credit card after losing their jobs. If they don’t have a credit card, they won’t be in the risk of debt collection, and they don’t have to worry about problems with their credit report.

Because holding a credit card often gives people the illusion that they are not using their own money, as long as they pay it back next month, some people will even fall into the dilemma of using the card to support the card. Of course, credit cards do not bring benefits to some people, but bring them disadvantages and are a burden, so they simply stop using credit cards.

Once a credit card is overdue, its rate will reach 18, so the fee is higher. Some people will no longer use it after understanding this. In fact, the most troublesome thing about using a credit card is overdue. After the due date, you have to call to apply for installment. If the bank does not agree, we may be recorded with a bad credit. For some people, naturally, they are not willing to do so. , so in order to avoid this happening again, just don’t use it.

Many people now like to shop online. Many online platforms will launch service products similar to credit cards. These products have similar functions to credit cards, but they also have a big advantage. , you can just show the payment code directly without swiping the card, which is why many people are reluctant to use credit cards anymore. To give a simple example, if a person uses Moubao's Moubai to go to the supermarket to buy something, he only needs to show the payment code, and the other party can scan the code to check out. If a credit card is used, then one still needs to swipe the card and enter the password, which is relatively simple. It's troublesome, this is also the reason why some people no longer use credit cards.

Why do more and more people dislike using credit cards? Too lazy to do it?

Credit cards are more for ordinary individuals. The boss doesn’t even need a credit card. He directly borrows hundreds of millions from the company’s bank. He signs the loan and spends it as he wants. He can buy a Rolls-Leighton or a villa, and all food reimbursements are made with a signature pen. If not, personal liability is unlimited. The company's left hand is replaced by its right hand, and its right hand is replaced by its left hand. If it goes bankrupt, you don't have to pay it back yourself.

Credit cards are convenient for everyone to use temporarily. Many people consume blindly and over-consumption leads to making ends meet, which is unnecessary. Nowadays, there are more credit services, and many people have more choices. Credit cards have billing dates and repayment dates. If you can't remember them, they may be overdue. Overdue ones will have an impact on your credit report. Many people find it troublesome, so they don't want to apply for it. Another thing is that the Internet is so developed now and virtual card payment is so convenient, so I am too lazy to apply for it.

From my personal experience, firstly, the process of issuing a card is slow, which can take up to 1 month. Now Huabei can be used at any time and can completely replace a credit card. Second, credit cards need to keep the repayment date in mind, which is troublesome for some people. If they fail to repay in time, their credit report will be affected, which they don’t want to see.

That’s because they can’t handle large amounts. For a credit card, the limit you are approved for each time is several thousand. There is no use in getting this card. If you can get a credit card with a limit of more than 100,000, it is still very useful, but most people cannot get a card with such a high limit. .

Daddy Ma’s online payment is very fast

The more you use your credit card, the worse it gets—the more you use, the more you owe, and the bank’s money will eventually have to be repaid. This is the United States. The concept of overdraft consumption in Western countries in advance!

It’s okay to use working capital occasionally, but living on credit cards is becoming more and more difficult and troublesome!

In the past, people needed to apply for a credit card to save money and spend money, and some people had several because of their own special needs. When people opened their wallets, they were also densely arranged. Credit cards one after another, but now fewer and fewer people are applying for credit cards, and some cards have even been destroyed. What are the reasons for this? Why do more and more people stop applying for credit cards? You won’t believe it if you tell me about these pitfalls. Why are there so many pitfalls in credit cards? After many people know about it, they will no longer apply for a credit card. So let’s take a look at the specific reasons!

First of all, we are now in a networked era. Almost everything can be done by the network. Even the payment and payment functions are contracted by the network, and mobile payment terminals are also available. More and more, such as Yu'e Bao, Huabei, etc., are more popular and accepted by the public. And this mobile payment function really facilitates our lives to a great extent.

Secondly, we no longer need to carry a credit card or even a wallet when we go out. We only need a mobile phone to do it all. Moreover, we can apply for and use these online for free. There is no need for many troublesome procedures and steps. It is very convenient and fast, saving a lot of time. If you want to apply for a credit card, you still need to go to a local bank, take our documents, and go through the relevant procedures. From this point of view, of course people are not willing to take the trouble to apply for a card!

Furthermore, few of us now devote time to shopping in physical stores. They usually shop online, which is more convenient. However, some online merchants cannot use credit cards to pay. It needs to be paid through Alipay, Huabei, etc., and there will be no handling fees, which is better than credit cards.

Finally, credit cards have specific repayment dates. Although you can repay them freely at the beginning, if you fail to repay them within the stipulated time, the interest will keep rising. Yes, inadvertently, you may not know how many times your repayments have increased. This is actually a bit scary.

I have to say that there are really many pitfalls with credit cards. When our bank cards exceed a certain limit, bank staff will call us and recommend some discounts to us. The service is said to give you something as a gift, but in fact when you feel you are getting a bargain, that is when the people at the bank are happy! They only told you the good side, but did not show you the bad side such as the fees that need to be paid. Only after you follow their recommendations, you may know the truth. So, it’s not that credit cards are really bad, it’s just that mobile payment may be more suitable for most people than credit cards.

1. The traditional mainstream consumption concept of Chinese people is to save money first and then spend it. Borrowing money to consume and spending in advance have never been mainstream. This is especially true when the income of residents is not very high. So at the end of the 20th century and the beginning of the 21st century, credit cards never really became popular.

Although the number of credit cards issued each year is large and growing year after year, many of them are the result of repeated card applications or bank employee recommendations in order to complete tasks. As a result, many people have several credit cards in their hands, but basically none of them use them.

Furthermore, it was troublesome to repay using a credit card at that time. You had to go to a bank branch every month to repay. For those small and medium-sized banks, there were few business branches and it was difficult to find them. Online banking is far less convenient than it is now.

In short, on the one hand, it is not very acceptable to the consciousness, and on the other hand, it is troublesome to use. So it didn’t develop much.

2. Entering the second decade of the 21st century, especially in recent years, the rapid development of Internet finance, coupled with the development of mobile intelligence, has led to the emergence of many various forms of online lending. You can borrow money without meeting in person, and with the promotion of various channels and methods, more and more young people have accepted the concept of early consumption.

For these young people, the credit limit is not high, and if they are still students, it is not easy to apply for a card. It is much more convenient to borrow online.

Huabei in Alipay is essentially a credit card, but it is much more convenient to use than a bank credit card.

Today’s young people may not necessarily deal with the bank more than once a year.

3. Another difference between credit cards and online loans

After all, banks are formal financial institutions with various strict operating procedures.

Online loans are worse, but they are easier to use and can better stimulate some consumer needs.

A few days ago I wanted to apply for a China Merchants Bank credit card and filled in the information online. A few days later, I received a call from China Merchants Bank and asked for an interview. Just pull it off and do nothing.

In short, in the past, most Chinese people had no awareness of borrowing money for consumption, so credit cards did not develop; after more and more people became aware of borrowing money for consumption, online lending as a credit card Alternatives were developed, and credit cards were pinned back.

It is useless and may become a burden! If many people think a thing is useless or cumbersome, of course they won’t want it.

Take me as an example. Two of my three credit cards have not been used for more than half a year. In the past few days, I have been thinking about how many times I should use them, otherwise I have to pay the annual fee. But one card I can't remember the password, so I'm about to log out.

Nowadays, there are three main reasons why people don’t like to use and apply for credit cards:

1. It is of little use, and you have to pay an annual fee if you don’t use it. Nowadays, except for some businessmen who use credit cards to circulate funds, the meaning of most people's credit cards is just one more card. In China, the reason why many people apply for credit cards is because they want to take advantage of the money. However, after doing it, I found that it was of little use or even useless. I still had to pay it back after more than 50 days. For Chinese people who are keen on saving, it is just to advance their consumption by more than 50 days; but if you don’t use it, you still have to pay it back. The annual fee will be deducted;

2. It is easy to forget to repay the money, and once you forget, it will affect your personal credit. There are tens of billions of yuan in overdue credit cards across the country. In fact, many of them are not because they can't pay off the debt, but because they have forgotten it. The credit card repayment password is simply magical. I send you a text message to remind you one month in advance. It is almost a few days before the loan is repaid. The bank will not remind you anymore, even if it is overdue, it will usually not notify you. Banks are very bad. If they cannot collect the annual fee, they can only rely on overdue interest. In fact, if you find out in time that you have forgotten to repay, a little interest is nothing. The key is that it will affect your personal credit, which may affect your ability to apply for a card in the future, or you may not be able to get a loan in the future. This is called the possibility of becoming a burden;

3. Electronic payment is relatively developed, and it is troublesome to swipe cards. Alipay and WeChat are so convenient now. Who still carries cards? Few people carry wallets anymore. Moreover, many places now do not recommend credit cards, and generally use Alipay and WeChat. Even if the credit card can be tied to Alipay and WeChat, it doesn't make much sense, because you can use Huabei to overdraft consumption, and using Huabei can not only increase Alipay points to exchange for things, but also quickly increase your Zhima credit score. If your Zhima credit score is high, It is still of great use, for example, you can enjoy bicycles, hotels, etc. without deposit, and the interest rate for borrowing is reduced, etc. Apart from extending the loan repayment period by a few days compared with Huabei, I can’t think of any other use for swiping a credit card;

4. It is difficult to increase the credit card limit.

When using Ant Huabei, you can also check your monthly consumption anytime and anywhere. Some contemporary young people often like to tear down the east wall to make up for the west in terms of economic consumption capacity. wall. Young people's concept of advanced consumption is obviously bad, but they have no way to control their spending power. Once all the money is spent on consumption every month, you need to use your future salary to top it up. This is also very convenient. When using Ant Huabei, the interest rate increased is not particularly high. When using a credit card, you will find that the interest rate will be much higher than that of Ant Huabei.

In fact, today's young people often apply for multiple credit cards when it comes to overdraft credit cards. As there are more and more cards, young people are prone to confusion. But if you only use Ant Huabei, you only need to remember to make repayments into Ant Huabei every month. Once there is an overdue loan in Ant Huabei, it will also affect the personal creditworthiness, because all the loans in Ant Huabei are equivalent to borrowing from banks, which is the same reason.

As a young person, before buying something, you should first understand how much money you can earn every month and how much you can spend. Don't develop the habit of spending money randomly. Once young people always spend money casually, they will not be able to save money at all. Young people should slowly learn to manage money and know how to save money step by step, so that they can live richer and richer lives. When buying something, there is no need to think about asking your parents for money.

If you don’t like the introduction of credit cards, let’s stop here.