Why do banks keep calling me to do credit card installment?

If you have a credit card, do you often receive calls from your bank asking if you want to apply for credit card installment business? Anyway, I only have a China Merchants Bank credit card in hand, and customer service calls every now and then to invite me to apply for installment plans. So, why do banks keep calling me to do credit card installments?

The reasons why banks always call and invite cardholders to do credit card installments:

1. Credit card installments are profitable

All banks’ credit card installment businesses include bill installments , cash installment, car installment, merchant installment, etc., there is no interest-free service. Cardholders need to bear a certain rate of handling fees according to the number of installments selected. The monthly rate is basically between.

Banks are not charitable institutions. It is also a profitable act to always call cardholders to invite them to make installments.

2. Reduce bank risks

Many people use credit cards to overdraft. When the bill amount comes out, they do not have the ability to repay the full amount. The bank proactively calls to invite installments to avoid continuing to pay. If the cardholder is overdue, it will affect his credit report.

3. Salespersons work hard for personal performance

The bank has dedicated outbound customer service representatives for the installment business. These people have daily performance appraisals, and the greater the volume of business introductions, the greater their The higher the commission, so it is more active to make daily phone calls to invite cardholders to do credit card installments.

Why credit cards are automatically installmentd?

Card holders often encounter such a situation. Their credit cards have not been applied for installments, but they are automatically installmentd by the bank. In fact, this kind of thing is relatively common, so why do credit cards automatically issue installments?

1. Induced by customer service: For example, customer service calls and invites you to apply for installment through various slogans. Common ones include 30% or 20% off the current installment interest rate, or the number of installments, such as The maximum is 36 installments, while other companies can only provide up to 24 installments. If you are tricked into applying for installments, if you agree, they will automatically apply for installments for you.

2. Automatic installment when the balance is full: When applying for a credit card, the terms are numerous and complicated, and few people will read it carefully. Maybe there is a clause about automatic installment when the balance is full, and you may accidentally tick it. If selected, installments will be automatically carried out as long as your consumption reaches the standard.

3. Apply for an automatic installment credit card: At present, many banks such as China Merchants Bank, China Construction Bank, Industrial Bank, China Everbright, etc. have launched automatic installment credit cards. This type of card itself has an automatic installment function. Any consumption, regardless of the amount, will be automatically amortized.

In short, there are only three situations where a credit card will be automatically installmentd. However, except for the first situation, installment-related terms are generally listed in the credit card application terms, so before applying for a credit card It is necessary to understand the terms clearly before applying.

Why do banks encourage credit card installment payments?

The bank can earn interest

The reason why the bank calls you to ask you to repay in installments is because the bank can earn interest from it. At the same time, it can also ensure that the money you withdraw from the bank can be paid back on time. From this point of view, banks are a choice that kills two birds with one stone.

Judge your personal qualifications

Of course, in addition to the above two, banks can also judge your qualifications.

It is best to increase your credit card limit based on your repayment status and after conducting background data analysis. For example, why people often receive temporary credit card limits? It is because of your good record of previous consumption and repayment, and then you continue to spend more.

This is the end of the introduction on why credit card installments and why the available credit limit is gone after installments. Have you found the information you need?