Credit card is a lending product that is overdrawn within the prescribed limit, can be purchased or consumed in the special commercial service department of the bank, and then the bank settles with the merchants and cardholders, while loan is a lending activity that banks or other financial institutions lend monetary funds at a certain interest rate and must return. Is there a difference between the two?

Is there a difference between a credit card and a loan?

1 Credit cards are interest-free except for handling fees and interest. Although the final repayment date is stipulated, many banks provide time tolerance service, in which the time tolerance is grace period, that is, there is a repayment buffer period of 1-3 days after the grace period. The repayment is normal before the grace period, but even if the repayment is overdue within the grace period, it needs to be reported to the credit information system.

After the loan is processed, there is no interest-free period, 99% has no grace period, and all repayments are returned to the bank card. The lender deducts money for repayment, and the deduction time is the last repayment date. As long as the deduction is unsuccessful that day, it will be overdue and leave a bad record in the credit report. Moreover, the loan has no tolerance service, and the outstanding credit card debt is less than 10 yuan, which is not overdue.

As can be seen from the above, there is still a big difference between using credit cards and applying for loans in advance, which is mainly reflected in interest and time-tolerant services, but both of them will be recorded in the credit report after they are overdue.