Are there any consequences if you apply for a credit card but don’t use it?

The consequences of applying for a credit card but not using it are: First, there will be an annual fee. If you open a credit card and don’t use it, the annual fee will be charged. It must be paid. If you forget to pay it, it will form an overdraft, which will lead to overdue payment; secondly, it will be reflected in the personal credit report, which may affect the cardholder when applying for a mortgage or other credit services, so it is not It is recommended to cancel the credit card used in time.

The difference between credit card and debit card

The following are the differences between the two cards: 1. Credit card is a consumer credit product, which requires consumption first and repayment later. Debit cards are deposited first and then used; 2. Credit cards can be overdrafted, but debit cards cannot be overdrafted; 3. Credit cards have a revolving credit limit, but debit cards do not have a revolving credit limit ( Revolving credit refers to the limit that the bank has approved for the cardholder. The cardholder does not need to repay the balance in full if he uses it within the limit. He only needs to pay the minimum repayment amount specified to maintain good credit. If the credit record is established, the cardholder's credit limit can be used again); 4. If the credit card holder needs to repay the full amount before the final repayment date, the shopping consumption may enjoy an interest-free repayment period; 5. Credit card deposits do not accrue interest, while debit card deposits accrue interest based on the savings interest rate; 6. Credit cards are asset businesses, while debit cards are liability businesses; 7. The issuance of credit cards must meet relevant conditions (such as The situation of the work unit, assessment of repayment ability and review of personal credit record, etc.), while debit cards only require an ID card; 8. Credit cards have anti-counterfeiting logos and UnionPay logos, while debit cards only require UnionPay logo.

Consequences of overdue loans

1. Penalty interest: When signing a loan contract, some relevant provisions will generally be made for overdue loans. Overdue loans will generally result in penalty interest. Financial Different institutions have different amounts of penalty interest and interest generated. However, as an expense that should not be incurred, it is best not to incur it.

2. Credit stain: This cannot be underestimated. Once the loan is overdue, the bank will report your overdue record to the central bank's credit reporting system. Once the record is generated, it will leave a stain on your personal credit report. This small stain will cause great resistance to your future loans or credit card applications, so borrowers must not lose big for the small.

3. Unable to enjoy preferential loan interest rates: We all know that when applying for a loan at a bank, loan interest rates will fluctuate to varying degrees. High-quality customers can usually get the lowest loan interest rates. However, Users with a history of overdue loans will not be able to enjoy interest rate discounts even if they are able to apply for a loan.

4. If it is overdue, it will have different effects on your credit report depending on the length of time. A credit report that is seriously overdue (more than 90 days) will become a black account. You will not be able to apply for any loan business before the overdue repayment. Overdue fees will also incur additional fees such as liquidated damages and overdue interest. Long-term overdue payments will eventually lead to interest rates greater than Principal matters are also very common, so please treat it with caution.

What will happen if you apply for a credit card and never use it?

1. If the credit card is left unused and has not been canceled or reported as lost, the bank may automatically deduct the annual fee

Since most credit cards have annual fees, and some credit cards have hard annual fees or must meet certain conditions to be exempted from the annual fee for the next year.

2. The bank may adjust the credit limit

In fact, the credit card limit can be adjusted. If the credit card is idle for a long time and there is no consumption record, the bank may adjust the credit card limit.

3. The credit report will record information about the credit card, including whether the credit card is activated and whether it has expired. In other words, after applying for the card, regardless of whether it is activated or not, will be recorded on the central bank's credit report. If an annual fee is charged to a credit card but is not repaid in time, it will affect your credit record. If there is a card application record but no usage record, future credit card applications may be rejected.

Failure to activate the card after applying, or not using it after activation, will affect the approval rate and limit of future credit card applications. For some cardholders who value their credit limit, the impact may be greater.

Credit cards, also called credit cards, are credit certificates issued by commercial banks or credit card companies to consumers with qualified credit. It takes the form of a card with the issuing bank's name, validity period, number, cardholder's name and other contents printed on the front, and a magnetic stripe and signature strip on the back. Consumers holding credit cards can shop or consume at specially designated commercial service departments, and then the bank will settle the accounts with merchants and cardholders. Cardholders can overdraft within the prescribed limit.

Credit cards stipulated in the relevant laws of our country ("Interpretation of the Standing Committee of the National People's Congress on Relevant Credit Card Regulations") refer to credit cards issued by commercial banks or other financial institutions with the functions of consumption payment, credit loans, transfer settlement , cash deposit and withdrawal and other full or partial functions of the electronic payment card. On December 1, 2017, the "English Translation and Writing Standards in the Public Service Field" was officially implemented, stipulating that the standard English name of credit cards is CreditCard.

Credit card consumption is a non-cash transaction payment method. There is no need to pay cash when consumption, and repayment will be made on the billing date (BillingDate).

Credit cards are divided into credit cards and quasi-credit cards. Credit cards refer to credit cards in which the cardholder has a certain credit limit and can consume within the credit limit and then repay; quasi-credit card It refers to a quasi-credit card in which the cardholder deposits a certain amount of reserve fund as required. When the reserve account balance is insufficient to pay, the cardholder can overdraw within the prescribed credit limit. The so-called credit card generally refers to a credit card only.

Starting from January 1, 2021, the credit card overdraft interest rate will be determined independently by the card issuer and the cardholder through independent negotiation, and the upper and lower limit management of credit card overdraft interest rates will be cancelled. The daily interest rate is 0.7 times 5/10,000).

A credit card is generally a special carrier plastic card with a length of 85.60 mm, a width of 53.98 mm, and a thickness of 1 mm. The name of the card issuer, validity period, number, cardholder name, etc. are printed on the front, and there is a chip on the back. Magnetic strip, signature strip. Cardholders can use their credit cards to shop and spend money with special entities and deposit and withdraw cash from banks.

What are the consequences of not using a credit card after applying for it?

1. It affects personal credit. This is mainly caused by annual fees being charged on credit cards. The fees include two aspects. One is the cost of payment for special cards, and the other is the rigid annual fee for high-end cards. These will be directly deducted from the credit card limit regardless of whether the card is opened or used, and will be included in the latest payment. One installment of the bill. At this time, everyone must repay the loan in full and on time, otherwise it will be overdue and personal credit will be damaged.

2. It affects the card use experience. If the credit card is not used after it is applied for, and there is no transaction record for more than 6 months, it will be easily controlled by the bank, and you may no longer be able to use the card to make purchases or withdraw cash. At this time, the card is in a semi-dead state. If you want to resume use, you can apply to the bank for reactivation.

3. It is difficult to raise the amount. Many people think that if the card is not used frequently, the bank will take the initiative to increase the credit limit for the user's consumption. In fact, this situation is very rare. On the contrary, if you do not use the card frequently, it will be particularly difficult to increase the limit. After all, the bank conducts a comprehensive assessment based on the user's credit conditions and card usage. If the card is not used, the bank will think that the cardholder has no need and give Excessively high amounts are also a waste.

4. Easily derated. Many banks will do this. For example, China CITIC Bank has previously issued an announcement that credit cards that have not generated any transaction records for more than 6 months will take reduction measures.

In addition to the effects introduced above, there is also the risk of credit card fraud if you never use it. Therefore, if you really don’t want to use the card, in order to avoid risks, it is recommended to cancel it as soon as possible.

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Due to the existence of "multi-credit credit", it is recommended that those who plan to apply for multiple credit cards pay attention to the order in which they apply.

"Multiple credit extension" means that some banks will refuse to apply for credit cards from customers with too many banks, such as China Construction Bank and Agricultural Bank of China.

ICBC and Bank of China are special. Some provinces ignore multiple banks, and some provinces restrict multiple banks. There are no fixed rules to follow.

In addition, banks such as China Merchants Bank, China Agriculture Bank, and Guangfa Bank raise credit limits quickly, and early processing will be helpful for subsequent credit limit increases.

In addition, the credit cards of Industrial and Commercial Bank of China and China Merchants Bank are relatively highly recognized in the industry, and you can apply for credit cards from other banks in the "card-by-card" method; only with a reasonable order of card application can you ensure the validity of the credit card. Maximum amount.

The general suggestions for applying for credit cards are as follows:

1. Give priority to applying for a credit card from a payroll processing bank to ensure a high initial limit;

2. Then apply for industrial and commercial, Bank cards for investment, agriculture, construction, etc., to build recognition or avoid not purchasing the card later;

3. If a card with too low a limit appears at this time, the account should be canceled directly to avoid affecting the card limit of other banks;

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The most important thing is that the above order is for reference only. You still have to determine the order of card application according to your own situation. At the same time, do not blindly apply for a card or apply for a card just when you see it.

What will happen if you don’t use your credit card for a long time?

Hello, applying for a credit card is for the card opening gift and card swiping money, so after applying for the card, you will basically not use it, but put the card aside. It should be noted that there are risks in not using your credit card for a long time. So what happens if you don’t use your credit card for a long time? There are four major influences that you may be affected by.

What will happen if the credit card is not used for a long time?

The consequences of not using the credit card for a long time

1. The annual fee will be deducted. As we all know, except for special credit cards that are free of annual fees, general credit cards require annual fees. Although many banks' Jinpu cards can use the number of card swipes to get annual fee reductions, but if they are not used for a long time, the number of card swipes cannot be reached. The annual fee will still be deducted, which needs to be noted.

2. Impact on credit. As can be seen from the above, once the annual fee is deducted from a credit card and we are unable to repay it in time, it will easily become overdue. Overdue credit cards have a great impact on personal credit reporting. Once the credit is stained, it will be stored in the credit reporting system for a long time. It has a great impact on our application for loans and credit cards.

3. Reduce the amount. If our credit card is activated but not used, the possibility of the limit being reduced is relatively high. When banks issue credit cards, they hope cardholders will swipe their cards more often. But if you don't use it for a long time, the bank will think that you have no need to use the card. At this time, the bank will reduce the limit.

What will happen if the credit card is not used for a long time?

The effects of not using the credit card for a long time

In addition to the above effects, if the credit card is not used for a long time, there may be the possibility of information being stolen. Credit cards were stolen. It can be seen that there are still many hidden dangers if a credit card is not used for a long time. The editor recommends that if you don't want to use it, try to cancel the card. Don't be too troublesome, otherwise you will easily suffer a big loss, and it will be too late to regret it.

Let’s stop here to introduce what will happen if you don’t use the credit card.