Credit card, as a credit medium product that can be used to overdraft consumption in advance, has been popular for more than 100 years. From the initial owners who were dignitaries or celebrities, to now everyone can hold it, and the status symbol function of credit cards has become increasingly weakened. According to statistics, by the end of 2016, the total number of credit cards issued in China had exceeded 590 million, with an average of 3.4 cardholders per capita. In 2016, the national credit card consumption transaction amount reached 741.81 trillion. But there is an undeniable fact that more and more people no longer apply for credit cards and even start to boycott them. As a professional credit card content platform, Leopard News takes this opportunity to analyze the reasons.
Although the credit cards launched by various banks have an interest-free period of 56-60 days, such preferential conditions are considered to be a "bait". Once the cardholders repay the outstanding balance, they will be deducted. Charge high interest rates of up to 0.5% daily interest (monthly interest rate 1.5%, annual interest rate 18%), and other fees such as liquidated damages, penalty interest, compound interest, over-limit fees, etc. These fees all add up to the annualized interest rate It may exceed 24%, causing heavy repayment pressure on cardholders.
In the eyes of some people, credit cards are legal loan sharks. When a credit card is overdue, not only will there be extremely high fees, but it will also be violently collected by a third-party debt collection company entrusted by the bank. The more people transfer, the more they transfer, and they hate this.
If a credit card is overdue and has been repeatedly collected by the bank but is not returned, it is easy for the card-issuing bank to report the case to the public security organ for credit card fraud, and the cardholder will be held criminally responsible for malicious overdraft. This bank's behavior of adding insult to injury is disgusting. In 2016, nearly ten thousand cardholders were accused by banks of malicious overdrafts and were sentenced to fixed-term imprisonment for credit card fraud. This has to be criticized. When applying for a card, you beg someone to do it, and issue cards indiscriminately. However, once the cardholder is overdue, the bank will immediately turn its back on the cardholder, and eventually he will be held criminally responsible. This is not in line with the principles of public order and good customs.
In recent years, there have been too many negative news about bank credit cards, which has seriously affected people’s interest in applying for cards. In addition to violent debt collection, there are also sky-high overdue fees, such as the interest on a 10 yuan debt rolled into more than 70,000 yuan; the news that a 50,000 yuan debt rolled into a debt of more than 350,000 yuan and so on.
In some scenarios where people use credit cards, the payee is unwilling to bear the high card usage fee and instead charges the cardholder a handling fee of 1% of the card amount, thereby allowing the cardholder to pay more. A fee, which damages the interests of cardholders, will naturally be resisted by people.
As Internet giants launch fast-moving consumer finance products such as Alipay Huabei, Ant Borrowing, JD Baitiao, Tencent Weilidai, Suning Pay Now, etc., they are essentially virtual credit cards, and their usage scenarios are more convenient and affordable. , and do not carry hard media cards with you, and you will not go to jail, so most people tend to use these "soft cards" launched by Internet companies.
A large part of the above reasons are caused by the banks themselves. Banks should find the crux of the problems themselves and improve them. For example, lower interest rates, don’t use violent collection methods, and don’t send your customers to jail at every turn. If banks do not face up to the problems that arise during the use of credit cards, I believe more people will give up using credit cards and use Internet credit cards. As Jack Ma’s father said: If the banks don’t change themselves, we will change the banks.
A useful benefit of credit cards is that they consume first and then repay, which provides great convenience to many people with unstable incomes. I have applied for several credit cards, and I applied for one before. Because with that card, my life became more and more unsettled and unstable. When I had it, I felt that I had money and could spend it again. Also, what's the big deal? It's just that if you are in such a state of mind, and then the cost gradually increases, you have no choice but to apply for a few one after another.
Everything has its advantages and disadvantages. If you use it well, it will be good, but if you use it badly, it will lead you into the infinite abyss. Credit card generally refers to just a credit card, so many people know that it is a credit card. If you spend money from others, you must pay it back. And it is not like borrowing money from relatives and friends. If you borrow money from a credit card, you must pay it back on time, otherwise You have to pay interest and lose your credit. It will definitely not be good for your own interests if you take out a loan in the future. On the contrary, if you borrow money from relatives and friends, you can delay it and it will have no impact on you.
Nowadays, people’s consumption concepts are becoming more and more rational. When it comes to credit cards, most people know what they are and understand their true functions. Therefore, many people are rational and understanding about credit cards. Goodbye.
I think if you really want to get a credit card, you should think clearly about what you will use it for and whether you can use it well. If you have no money and want to get a credit card, it will show your identity. I still advise you. Don't do it, because we don't live alone, there are many people around you who love you.
The emergence of credit cards provides everyone with the convenience of spending first and repaying later. For most people, they just want to take advantage of the interest-free period of more than one month, rather than being willing to pay more. In the actual use process, it is common to pay high interest rates for various reasons, so many people are skeptical about credit cards, at least not welcoming them, and some even reject them outright. The specific reasons are probably as follows.
Credit card penalties are very high and not cost-effective. As we all know, credit cards generally have an interest-free repayment period of nearly two months. Because of this, some young people can make purchases in advance before they have received their salary, such as buying clothes, bags, or... A tablet that I enjoy spending time with and feel fully capable of paying off my credit cards. However, in the process of unknowingly spending extravagantly, I found that all the expenses were high. On the repayment date, I did not have the money to pay the full amount, so I changed it to the minimum amount, and then transferred the money in installments, which in turn incurred handling fees and interest. .
However, I still may not be able to pay back the debt next month, so I have to pay for it by demolishing one wall to pay for the other, and apply for a few more credit cards to cash out the debt. Some even take out loan sharks to pay off the debt. This is not difficult. Understand those naked loan incidents. In this way, what was originally a good credit card consumption made him fall into the life of a credit card slave. In fact, he ended up on the road of loan sharking. In fact, the interest rate of credit cards is really not low. The daily interest rate is 5/10000. If converted, the monthly interest rate is 15%/10000%, which is 1.5%. The annual interest rate is 18%. Everyone knows whether it is high or not. The general annual interest rate on financial management income is only about 5%.
If you are not careful, your personal credit will be affected. In addition to affecting funds and generating interest or penalty interest, many people also have credit cards that affect their personal credit. You must know that personal credit is now very important in matters such as buying a house. If you cannot get a loan, or if you find an intermediary to find other ways to get a loan, the possible impact and cost will be relatively large. Therefore, some people are afraid of snake bites for ten years and are very cautious about credit cards.
There are many similar Internet products, and alternative products are more convenient to use. In the early years, only credit cards provided such services. Nowadays, Huabei, Jiebei, Weilidai, Jingdong Baitiao, etc. all provide services similar to credit cards. Moreover, such Internet products are easy to apply for. You can simply submit some personal information online. , and more and more people are consuming online, and this type of Internet products can also provide users with more benefits. Therefore, many young people turn to such loan products instead of applying for credit cards.
In general, credit cards will face greater challenges in the future. After all, competition among similar products is very high, and Internet products understand users better and can win everyone's favor.