The charge-off rate of credit cards is getting higher and higher. What causes credit cards to no longer be your "sweet potato"?

According to a survey by "Yinsu.com", in the past year, the credit card cancellation rate reached a new high. More than 50% of cardholders have experienced credit card cancellation. So what are the reasons? What about the continued intensification of this phenomenon?

The low cost and high interest rate of credit cards can bring a lot of revenue to the card-issuing banks. For this reason, in the development process of credit card business, banks continue to lower the threshold for credit card processing in order to attract more users, and even pass The marketing methods of "swipe more, replenish more" and "quickly increase the limit" are used to attract customers to apply for credit cards.

Under this development trend, although the number of bank credit cards issued has increased, user demand is limited. When the number of credit cards in hand exceeds a certain number, some credit cards with poor benefits will inevitably be eliminated.< /p>

In recent years, "online credit platforms" have developed rapidly with the help of Internet technology. Credit platforms such as Huabei, Jiebei, and Weilidai have relied on "scan the QR code to pay" and "borrow anytime". The characteristics of "return" and "quick increase in quota" quickly occupied the young market.

The emergence of these large-scale credit platforms has provided people with more choices in the consumption process, but it has also impacted the dominance of credit cards in credit products, especially for users who often shop online. , credit cards are already dispensable compared with Huabei, Jiebei, gold bars and other commodities.

In the past, the reason why credit cards were favored by consumers was that in addition to being able to spend in advance, the welfare activities launched were also an important part of attracting users. Activities such as getting a free parking space when you apply for a card, spending a few hundred yuan on five-star hotels, making cash withdrawals without interest, and getting free insurance when you apply for a card are indeed very attractive, but times have changed!

With the continuous improvement of consumer demand, these welfare activities can no longer satisfy the appetite of users. The same activities and other credit products can also be provided to users, resulting in the uniqueness of credit cards becoming less and less. , unable to bring surprises to consumers, it is no longer consumers’ first choice for advanced consumption.

Credit cards are the most likely type of credit product to be involved in criminal liability in the current credit environment. Although other credit products may also be involved, the probability of this happening is extremely low. Compared with credit cards, it is completely Can be ignored.

The main reason why the impact of an overdue credit card is so serious is that once you engage in malicious overdraft behavior during the overdue process (such as changing contact information, spending wantonly even though you know you are unable to repay, etc.), you may The bank will charge you with a credit card crime. When your overdue principal exceeds 50,000 yuan, it will constitute a criminal liability.

To sum up: In the fierce competition environment of the credit card industry, credit cards have also been impacted by online credit products, as well as serious overdue effects, which have led to credit cards no longer being the first choice of consumers. The cancellation rate is getting higher and higher.

Why do we have to cut off the canceled credit cards?

Some people have applied for a lot of credit cards (debit cards), but they don’t actually use so many of them on a daily basis; or because the discounts are running out, it’s useless to use them or not; just use them. These dispensable credit cards (debit cards) are all gone. However, even if it is an idle credit card (debit card), you still need to pay an annual fee or something. This expense is not cost-effective no matter what.

As a result, some people are thinking of canceling all these unused credit cards (debit cards). However, can the canceled credit card (debit card) be thrown away after the cancellation? Wait, stop! Of course not! The canceled credit card (debit card) must be cut off! Especially the old credit cards with magnetic strips!

So, why must the canceled credit card (debit card) be cut off?

1. Because credit cards (debit cards) have a cancellation cycle

Whether you go directly to the bank counter to cancel the card or apply for cancellation over the phone, after receiving the customer's application, the bank will We will check whether there is any debt on the credit card (credit card), whether the customer has any other unpaid bills, etc., and it will take a certain period of time to process.

Therefore, after applying for card cancellation, the credit card (debit card) is only apparently invalid, but there is still a "danger period" before the bank processes it.

During this period, if the credit card (debit card) is not cut and is lost and picked up by others, there will be a risk of being swiped.

Generally speaking, this period is 45 days, but each bank has different regulations. It is best to ask the bank before canceling.

2. Because canceling a card does not mean canceling the account

According to the "Management Measures for the Preservation of Customer Identification and Customer Identity Materials and Transaction Records of Financial Institutions", bank account information shall be recorded from the year of transaction accounting. It will be kept for at least five years. In other words, after applying for a credit card (debit card), the bank will set up a bank account based on the cardholder's information. The card is just a manifestation of the account, so canceling the card does not mean canceling the account.

Now, the same credit card (debit card) limit of the same type from the same bank is universal. Therefore, if you do not cut off the card after canceling it, and the card is not canceled successfully, your credit card (debit card) may still be stolen.

3. Your personally identifiable information remains on the magnetic stripe of your card.

Although, the credit cards (debit cards) issued by banks now are chip cards. However, some users still have magnetic stripe cards. Therefore, when canceling a credit card (credit card), everyone must also pay attention to whether the credit card (credit card) they cancel has a magnetic stripe. If so, be sure to remember to cut the card. Because your personal identity information still remains on the magnetic stripe of your credit card (credit card). If you don't cut the card, your personal identity information will also be leaked, causing the credit card (debit card) to be stolen.

To sum up, I suggest that after canceling your credit card (debit card), you must remember to cut it!

Why is it not recommended to cancel credit cards

Modern people’s lives are inseparable from various financial services, especially banking institutions.

Most of the business handled at the bank revolves around the two businesses of debit cards and credit cards.

In the past, many people did not pay special attention to credit cards because our country is not yet a country where consumption dominates. But now, consumption has become the absolute main force, and advanced consumption and credit consumption have become essential options in life. one.

Credit consumption is inevitably inseparable from bank credit cards. Now more and more people are applying for credit cards, the threshold is getting lower and lower, and there are many credit cards. Some people think that using credit cards will increase their consumption, so they often think of canceling their credit cards.

Today, let’s talk about how, under normal circumstances, it is not recommended to cancel credit cards.

1. Do not cancel credit cards in case of emergencies, that is, when you encounter major economic changes in your life.

Generally speaking, most people want to cancel credit cards, but most of them have a plan in mind. The concept is that if you have a credit card, you always feel like you are carrying a huge debt. If you don't spend money and the credit card is idle, it will be detrimental to the credit limit and credit; if you use the credit card and forget to repay it, you will have a bad credit record.

Most of the people who can apply for credit cards have good credit, have a stable life, and have a fixed salary income. And if one day, due to an accident or a major change in life, you have no way to borrow money, using a credit card may help you get through difficult and critical moments. I believe many people have experienced this situation.

If you try to apply for a credit card in this critical time, you won’t be able to get it. Keeping your credit card while everything is fine will save your life at the critical moment. To put it bluntly, it is to prepare for a rainy day, because you cannot be sure who will come first tomorrow or the accident. More insurance and more security.

2. It is easy to cancel a credit card, but after cancellation, it will be even more difficult to apply again.

Every bank has a filtering mentality for users who have canceled their credit cards. To put it bluntly, it means that you are not a high-quality customer because you have applied for a credit card before and do not use it frequently or spend frequently. If you apply again, unless you are particularly outstanding, there is a high probability that it will be rejected.

What is particularly interesting is that the bank has also issued relevant regulations such as "re-applying for a credit card is not allowed within 6 months of canceling the card."

If you have used a credit card for consumption, had a bad record, been overdue, or canceled the credit card, you are telling the bank that you want to "destroy all traces" and you will never be able to get a credit card again. qualifications.

3. Canceling a credit card does not mean canceling the account. It can easily be used by criminals and cause unnecessary trouble.

Canceling a credit card does not mean canceling the account. Your card has been cancelled. But your information is still in the bank, and there happens to be a gap period. If at this time, it is stolen by criminals, but you don't know anything about it, because you think that you have canceled the card and everything is fine, but in fact, your information has been stolen by others, and you have to apply for a new credit card, and you have no way to do it. Discover. By the time you find out, substantial harm has been done to you.

Please note that canceling a credit card does not mean canceling the account. It is best to cancel the account at the same time as you cancel the card, which will be safer.

Why do many groups ask you to cancel a credit card after half a year?

This should be because the customer service staff artificially increases the cancellation threshold. Under normal circumstances, as long as there are no outstanding bills on the credit card, there will be no overflow in the card. Deposits can be directly applied for cancellation.

That’s it for the introduction to why everyone is canceling credit cards.