Credit cards can essentially be regarded as small interest-free loans, but there are certain differences between credit cards and small loans: 1. Different purposes. Small loans directly issue cash, and there are basically no restrictions on use except that it cannot be used for investment and illegal purposes; credit cards are mainly used for consumption. If you want to use cash, you must withdraw cash or apply for cash installment. 2. The interest calculation methods are different. There is an interest-free period for credit card purchases. If you repay in full and on time before the repayment date, no interest will accrue; for small loans, interest will start to be calculated as soon as the payment is made.

1. Which one is better, credit card cancellation or account cancellation?

There is no absolute good or bad distinction between credit card cancellation and account cancellation. The key is to look at the cardholder’s own needs. Card means canceling an unused credit card, and personal information will still be retained; account cancellation means canceling a personal account at the bank where the credit card is located, and the bank will no longer retain personal information. If you have other cards in your name and you only cancel one of them, you can choose to cancel the card; if you have no other cards in your name and all the cards have been cancelled, you can choose to cancel your account.

2. Which cards should be canceled first?

Cards with small credit limits and difficulty in raising the credit limit are of little value to us, as long as the credit limit is small. This kind of card is the first choice for cancellation, leaving the vacant space for Banks with greater potential are the best choice.

The latest card. As we all know, a credit card that has been used for a long time is very helpful for personal credit reporting and will effectively improve one's credit score. On the contrary, the latest card is not so big. force. Because the bank cannot understand your spending power and credit situation, there is a risk of lowering your personal score. For example, if you apply for a card with a card, the difference will be if you apply for it with a card that has been used for a long time and with a new card. It will be huge. Therefore, we should try to keep credit cards that have been used for a long time, but this is based on a good credit record.

Banks with strict risk control. Strictly speaking, this is not a reason for cancellation, but since many cardholders are currently heavy card users, they have to be added. After all, banks with too strict risk control can be very damaging to credit cards in certain special periods, and sometimes even directly interrupt the capital chain, you know. . .