The difference between credit cards and loans
The differences between credit cards and loans are as follows:
1. Different limits: Credit card limits are relatively small and can only be used for consumption. , if you withdraw cash, you will be charged interest, and the repayment period is relatively short. Loans have relatively large amounts, long terms, and relative flexibility.
2. Different interest-free periods: Generally speaking, credit cards have interest-free periods, but loans do not.
3. Different consumption methods: The credit limit of a credit card can generally only be used for consumption, while loans can be used more widely.
Overpayment: People often pay more when repaying their credit cards. For example, if the bill is 3,000 yuan, they may pay back 3,100 yuan, etc. They think that it is not a big deal to pay more, as long as it is not overdue. . In fact, overpaying is also risky, especially if you do not use the card for a long time after repayment, more than one year, the overpaying may turn the credit card into a bad debt. Once a bad debt record appears on the credit report, you will never be able to apply for a credit card or bank loan again unless it is dealt with. It will be 100% rejected without questioning. In addition, no matter how long it takes to repay the extra money, the bank will not give you 1 cent of interest, and you will have to pay a handling fee when you withdraw it. This is completely different from depositing on a debit card.
Automatic credit card repayment: Many people will say that automatic repayment is good. After setting it up, you don’t have to manually repay it. The system automatically deducts the payment, which saves a lot of worry. Many people have never noticed that in order for automatic repayment to be successful, you must have enough money in your savings card for the system to deduct the money. As a result, the savings card associated with automatic repayment did not have enough money to be deducted, and I did not manually make the repayment within the grace period of the last repayment date. You don't have to think about the consequences, you know it will be overdue. If it is overdue, interest will accrue, and you will definitely have to pay more for repayment.
Choose the minimum repayment: The minimum repayment generally only requires about 5% to 10% of the new consumption amount in the current period without being overdue. The repayment pressure in the current period is relatively small, but it is the least cost-effective. Yes. No repayment
The credit card has a credit limit, so you can spend it first and then repay it. If the cardholder repays the entire amount due before the due repayment date, all consumption in the current bill will enjoy the interest-free period repayment treatment, and no interest will be charged.
In addition to consumption, you can also withdraw cash and make installment payments. Especially when traveling, international credit cards are very useful for booking air tickets or hotels. UnionPay cards are not widely used.
And there are more marketing activities for credit cards. If you are also using a card, then using a credit card is more cost-effective. In addition to being easy to use, you can participate in marketing activities, and you can also accumulate credit card points, which can be redeemed for gifts.
What is the difference between a credit card and a credit loan?
The difference between a credit loan and a credit card:
1. The application conditions are different;
2. The difficulty of application is different;
3. The requirements for work are different;
4. The requirements for income are different;
5. The amount is different;< /p>
6. Different fees;
7. Different terms;
8. Loan speed.
Credit cards and credit loans, the two are very familiar from the name alone, and many friends are confused when applying for loans. Is a credit card or a credit loan better? What's the difference between the two?
1. There are differences in the issuance carriers
Credit cards: The issuance carrier of credit cards can only be banks.
Credit loans: The carriers of credit loans are not limited to banks, but can also be private financial institutions, companies, P2P platforms, etc.
2. The application conditions are different
Credit card: Can provide employer, good credit report.
Credit loan: generally requires a stable job, bank statements, and good credit.
3. The loan limit is different
Credit card: Usually, when applying for a credit card for the first time, the limit is generally between 5,000 and 20,000. If the cardholder often uses the credit card and If you have a good repayment record, the bank will automatically increase your credit limit. Moreover, the credit card has a revolving limit, and the credit card can be lent out on a recurring basis once the repayment limit is restored.
Credit loan: Under normal circumstances, the application limit for a credit loan will be determined based on the usage of the credit card. It is usually between 10,000 and 500,000, and the maximum can be 2 million.
However, credit loans are generally a one-time limit, and the contract will be terminated when the loan is fully repaid. If there is still a need for borrowing, you need to apply separately.
4. There are differences in loan interest
Credit cards: Generally, credit cards have no interest as long as they are repaid in full and on time, but if the repayment is overdue or the repayment is not in full, then The bank will charge a certain amount of interest. In this case, credit card interest is calculated from the date the consumption is recorded. Interest is charged at 0.05% every day, and compound interest is calculated monthly. In other words, if the interest this month is not paid off, the interest will also accrue next month. Interest.
Credit loan: The interest rate of personal credit loan depends on the interest rate of the loan, the term of the loan and the amount of the loan. Different banks and lending institutions may have different interest rates on credit loans. Apply for personal credit at the bank. For loan business, the annual interest rate is generally about 11%, and if it is handled through a loan company, the interest rate is usually 18% to 36%.
What is the difference between credit cards and loans?
Credit loans and credit card loans. Both are loans made using an individual's credit. Although there is only one word difference between the two. But the two are fundamentally different. Today I’m going to summarize the differences between the two.
1. Application conditions
Credit loan: generally requires a stable job, bank flow, and good credit;
Credit card: can provide an employer , credit report is good.
2. Ease of application
Credit loan: relatively difficult;
Credit card: relatively easy.
3. Requirements for work
Credit loan: It is required to have a stable job;
Credit card: In principle, it is necessary to have a stable job, but Units can be packaged and the requirements are relatively low.
4. Income requirements
Credit loans: Basically, monthly income is required to be above 3,000 yuan, and the requirements in first-tier cities will be higher;
Credit card : Generally banks will not require bank statements, but will infer based on work and social security conditions. Generally speaking, a monthly income of more than 2,000 yuan is required to pass.
5. Different credit loan limits
Credit loans: At present, most credit loan limits are between 10,000 and 500,000, and some banks can even offer up to 2 million. Within;
Credit card: Credit card limits vary widely, generally ranging from 500 yuan to 10,000 yuan, but most limits are between 10,000 and 50,000, depending on the level of the credit card. , credit card levels are divided into: regular card, gold card, platinum card, diamond card, unlimited card, etc.
6. Different fees
Credit loans: The interest rates of credit loans vary greatly. The qualifications and interest rates of different lending institutions and different loan customers may vary greatly, usually small. Loan interest is between 1.5% and 3% per month, while bank interest is between 10% and 15% per year.
Credit cards: Credit cards are normally interest-free. Generally, the interest-free period ranges from 45 to 60 days, if it is an installment payment. You can choose from 3 months to 24 months.
7. Term
Credit loan: The term of credit loan is generally between 3-36 months;
Credit card: If the credit card is swiped, it is free of charge. The shortest interest period is 1 day and the longest is about 55 days; if it is installment, you can choose 3-24 months.
8. Disbursement speed
Credit loan: It takes about 2-5 working days from application to disbursement of credit loan;
Credit card: waiting time for credit card issuance It takes a relatively long time, usually 15-20 days, but once the card is issued, it is very convenient to use, and you can basically get money instantly.
That’s it for the introduction to the differences between loans and credit cards.