When your financial income is normal, ensure that it does not exceed a few points of salary income and that you can repay the loan on time.
When using credit cards, we should pay attention to the following aspects:
1. Credit cards cannot be used as a financing tool for cash withdrawals, because cash withdrawals require high handling fees. Moreover, daily interest and late payment fees will be charged from the day you withdraw cash. If there is an emergency and you need to use a credit card to withdraw cash, you must pay it off in the shortest possible time. It must not be used as a long-term financing tool to avoid adding interest to interest and penalty to penalty. Long-term non-payment will eventually lead to small overdrafts becoming into huge debts and even lose personal credit.
2. Do not use credit cards to withdraw cash. It is best to use it for consumption settlement. Because you cannot enjoy the interest-free repayment period when withdrawing cash with a credit card, you will be charged a daily interest rate of up to 50,000 points from the day you withdraw the cash, and you will also be charged a handling fee for withdrawing cash from other places. 5. Collect daily interest.
3. Do not use non-foreign currency credit cards to withdraw cash or settle accounts abroad. You should also use the credit card's foreign consumption and domestic RMB repayment functions with caution, because this will not only expose you to the risk of exchange rate changes, but also make you bear the losses of exchange rate changes. Moreover, the card-issuing bank has to charge related foreign exchange conversion fees, etc., and some also charge various fees from foreign agency banks, which is very costly.
4. Be sure to pay before the interest-free repayment period. Don’t think that there is a 50-day interest-free repayment period. If you overdraft for 55 days, the bank will deduct the 50-day interest-free repayment period. You only need to pay interest for the excess 5 days. This is a very wrong understanding.
5. After receiving the monthly credit card statement, you must pay the minimum repayment amount during the repayment period. It is best if you can pay off the entire overdraft in time. If you really have difficulty in cash flow, it is best also You must pay the minimum repayment amount, so that you can at least reduce the serious losses due to interest rates and penalties, and prevent your late payment fees and penalty interest from escalating.
6. When using credit cards, you must attach great importance to your personal credit record. Remember that your behavior in handling credit card accounts will affect the quality of your personal credit record, which will affect your future dealings with banks and even your job search. and career development. Therefore, once you receive a monthly statement from the bank, you must go to the bank in time to pay off the debt or the minimum repayment amount. Do not cause unnecessary fines and credit loss due to busy work, tight time, or negligence.
In addition, in terms of credit accumulation, generally everyone’s understanding of credit cards is that the more loans you have, the faster your credit value will increase, but this is not the case. For example, in foreign countries, the calculation of credit value includes five factors: 35% payment history, 30% utilization rate, 15% length of credit card, 10% newness Credit (new credit) and 10% of credit types (types of credit). The utilization rate refers to the ratio between the monthly consumption amount and the limit. Generally, it is better to be less than 30%. That is, if the limit is $1,000, the maximum A monthly loan of $300 and borrowing as much as you can will be detrimental to your credit worthiness. Correspondingly, unless you want to apply for a loan from a bank, if you have several credit cards with high limits, the bank may not consider lending to you. Frequent application for credit cards may also lead to a decrease in credit value. The records of each credit card application are visible to all major banks within 6 months. If you apply for 5 or 6 credit cards at once, the bank will think that you are short of money. There is no insurance, so the possibility of applying will be greatly reduced. A better approach is to only apply for 1 or 2 within 6 months, and then apply for others after 6 months.
7. Be good at utilizing the strengths of credit cards to manage finances scientifically. For example, Mr. Zhang, a salesman of a certain company, has been out selling for many years. The cost of a certain business trip was 20,000 yuan. After settling the bill with a credit card, he took the invoice to the company for reimbursement and received 20,000 yuan in cash. He then used the money to invest in the stock market. Due to the good momentum of the stock market at that time, the stocks purchased by Mr. Zhang made a profit of 20% in one month. One month later, Mr. Zhang took out the money before the interest-free repayment period and repaid the bank. In this way, Mr. Zhang only used his personal credit and obtained 20% of the income without spending a penny, and no late fees or penalties were incurred.
8. When using a credit card, you must protect your personal information, including signature, ID card, password, bill, account number, etc. When using a credit card, you should prevent people around you from peeking at your credit card information. You should also prevent scammers from using the phone, the Internet, or various methods to deceive you into writing credit card information to ensure the safety of your credit card.
There are currently two types of credit card confidentiality settings: signature and password. In many foreign countries, only signatures are used as the basis for credit card consumption. This is because personal signatures have strong identification capabilities in these countries. In these countries, personal signatures are used as proof of personal identity in many places, so personal signatures are often consistent and have unique characteristics. However, in our country, people are more accustomed to relying on passwords rather than personal signatures. Therefore, many people do not have their own fixed signature method, and many merchants only go through the signature verification process without even checking it. Therefore, it is best to use a double insurance form of password and signature in China to prevent credit card theft.