1 has different uses. Small loans directly distribute cash, which cannot be used for investment and illegal purposes, and there are basically no restrictions on their use; Credit cards are mainly used for credit card consumption. If you want to use cash, you must withdraw it or handle cash installment.
2. The calculation method of interest is different. Credit card consumption has an interest-free period, and if it is repaid in full and on time before the repayment date, no interest will be generated; Interest is calculated as soon as the small loan is repaid.
2. Credit cards are mainly used for repayment after consumption, and bank funds are used for consumption in advance and enjoy interest-free period. This is a financial management method. Credit card is not a savings card, and the deposit in credit card will not pay interest. Credit cards can be used as payment tools, and can be directly consumed through POS machines installed by merchants or online payment platforms. The bank will also provide you with various forms of integral, discount, installment, lottery, promotion and other activities. Credit card is also the main international payment tool. You can shop conveniently on overseas and international websites. If you travel and stay in a hotel, only a credit card can complete the hotel pre-authorization for you.
3. Basic conditions for handling credit cards:
1. The applicant must be at least 18 years old and live in China. Of course, foreigners can also apply;
2. The applicant is an individual with full capacity for civil conduct and has a good credit record;
3. The applicant has a legitimate occupation and stable income, and can repay the credit card payment on time;
4. Other conditions required by the bank.
First, the difference between card cancellation and account cancellation
1, credit card cancellation
Cancelling a credit card will only invalidate your card. As the name implies, the card cannot be used normally. Many people forget their cards after they cancel them, and some still throw them aside. But after someone finds your card, criminals will use your magnetic stripe information to copy the card again and then use it for consumption. I didn't realize that the bank would inform you to repay after the credit card bill came out. If you are not careful, it will bring you overdue risk and unnecessary trouble! However, when you cancel your credit card and apply for a new one, the bank can't treat you as a new user.
2. Credit card cancellation
Credit card cancellation means that the personal bank credit card information account is completely deleted, and the system does not have all your information. The card needs you to cut off the magnetic stripe with scissors. If you apply for a card again, you can enjoy it as a new user. Some banks hold grudges when closing their accounts. Remember to think twice before you act.