Credit card is a bank product, so be careful when using it. After all, it is closely related to our credit information. However, many card friends will have some minor problems in the process of using the card, and they are worried that it will affect the credit information. In fact, it may just be a misunderstanding. Here, I would like to introduce some common misunderstandings about credit card credit reporting.
1. Will credit card failure to repay on time affect credit reporting?
Many people think that the credit card must be repaid when it expires, otherwise even if it is overdue, it will affect the credit investigation. In fact, it depends on the situation.
After all, some banks have a grace period of 2-3 days, and there will be no liquidated damages for repayment during the grace period, and it will not be uploaded to the credit information system. For example, China Merchants Bank card has a three-day grace period, and the repayment date is 10, then 13 is not overdue and will not be recorded in the bad credit report.
Second, overdue cancellation of credit cards can eliminate credit reporting?
There are often card friends who pay off their debts after the credit card is overdue and immediately cancel the card, thinking that after the card is cancelled, all the records of this card will not be found in the credit report.
But in fact, many people find that credit cards can still be found after they are overdue. This is because the second-generation credit information has been launched, and the credit card records will be kept for five years. The cancellation of the card will only not generate bank records, but will not eliminate the previous records.
3. Can the credit stain caused by overdue credit cards be eliminated with money?
Some people may have seen the news posted on the internet and said that there is an internal connection. As long as you pay thousands to tens of thousands of fees, you can eliminate bad credit records.
Actually, this is a lie. Unless it is not the fault of the cardholder, no individual or institution can modify the personal credit data at will. Only after overdue repayment, the credit stain will be automatically eliminated after being retained for 5 years.
Misunderstandings that are easy to occur when using a credit card for the first time.
Many friends who apply for credit cards for the first time often have two extremes because they don't know much about credit cards. Otherwise, it is uncontrolled use, and all kinds of cash installment financing businesses come to you, or just swipe your card like a savings card. In fact, as long as the credit card is used well, it is very helpful for financial management.
Mistake 1: treat the credit card as an ATM, and swipe it if you have no money.
Some people have no money at the moment, but they are in urgent need of money, so they swipe their credit cards and use them as money anyway. That's right, but if you get into the habit of not paying back in time, you will have to pay a lot of penalty interest, which will also cause credit stains.
Mistake 2: If you have no money to repay the credit card, pay the minimum repayment first.
Credit cards have a minimum repayment amount, but the repayment is guaranteed, and the interest will still be paid as usual. The interest rate is scary. Suppose the daily interest rate is 0.5 ‰, which is equivalent to the annual interest rate 18%, which is three times higher than the expected annualized interest rate of about 6% for ordinary commercial loans. Therefore, when you use a credit card, you should try to repay it in full and on time.
Mistake 3: I have no cash on me. Credit card overdraft is used to withdraw cash.
Credit cards can indeed be overdrawn for cash withdrawal, but most of them have to bear interest on a daily basis. The daily interest rate is about five ten thousandths from the first day of cash withdrawal, and it is calculated with compound interest. The handling fee for cash withdrawal is about 1%. In this regard, the financial planner reminded that if there is no urgent need, try not to use a credit card to withdraw cash, and at the same time prepare a savings card, so that cash withdrawal does not cost money.
Mistake 4: If you can't remember the amount of the credit card, just refund it.
If you don't pay off all the loans, you need to pay off all the interest on last month's loans by the next final repayment date, even though you paid off some of them last month. So, be sure to remember the repayment amount. If it really doesn't work, look at the bill and confirm the amount before repayment. Don't pay the penalty interest in vain.
Mistake 5: Money is deposited in a credit card and then withdrawn when there is a cash demand.
Some people are used to swiping their cards conveniently. When they have cash, they will deposit the money in the credit card, and they must put some cards on the credit card. They'll pay it back sooner or later anyway. Put it in first. However, when money is deposited in a credit card, there is not only no interest, but also a high handling fee. So it is more cost-effective to deposit and withdraw cash with a savings card.
In a word, credit card brings convenience to people, but it also secretly lays many traps. The financial planner reminds everyone that you must recognize these misunderstandings when using credit cards, so that you can clearly understand consumption, easily repay, and never fall into the deep pit of credit card cycle interest.
Six misunderstandings of credit card use: you can overdraw at will during the interest-free period.
Do you have a credit card? Are you familiar with the rules of using credit cards? Do you know how to calculate the annual credit card fee? Do you know how to get a better credit card? Is credit card installment good or bad? Do you know the withdrawal fee for credit cards? Credit card is not a savings card, and six misunderstandings help you get out of the card slave.
Myth 1. Credit card deposits have interest.
In fact, credit card deposits not only have no interest but also a handling fee. The bank will certainly be happy to deposit the money in the credit card, but the loss lies with the cardholder. First, the bank will not pay interest, which is equivalent to giving the bank an interest-free loan; Secondly, the cardholder will pay a credit card withdrawal fee after depositing and withdrawing the money. The charging standards of different banks are inconsistent. Some banks accept 1%, at least 10 yuan, and some banks accept at least 50 yuan.
Myth 2: You can overdraw at will during the interest-free period.
All bank credit cards have an interest-free period, and many credit cards have an interest-free period of about 50 days. "During the interest-free period, some cardholders think that they can use it interest-free, regardless of the overdraft limit of credit cards." Bankers in the city said that cardholders can't enjoy the interest-free period if their overdraft exceeds the credit limit approved by the bank, and they have to pay overdraft interest from the date of overdraft.
Myth 3: Repayment on the last day of interest-free period.
Many cardholders always want to enjoy the longest interest-free period, thinking that it is the last day of repayment. In fact, both automatic deposit machine repayment and inter-bank repayment do not arrive immediately, and it takes 1-3 days. The bank will calculate the overdue interest from the day the cardholder spends, not just the number of days overdue. Therefore, it is particularly necessary to remind cardholders who have not tied their credit cards and debit cards together, and try to repay them two or three days in advance.
Influence of overdue repayment of credit card
Myth 4: Cash withdrawal also has an interest-free period.
The policies of credit card withdrawal and credit card consumption are completely different, and all banks stipulate that "credit card withdrawal needs interest and does not enjoy interest-free treatment". There is also a high handling fee for withdrawing cash by credit card.
Myth 5. There are many discounts on installment payment.
All banks have launched credit card installment payment service, which allows cardholders to agree with the bank how many times to pay off the overdraft after shopping in the mall with their credit cards. During the agreed repayment period, the bank does not charge overdraft interest. Bankers in the city said that banks would not lend money to cardholders in vain, but only changed the interest on credit card overdrafts. When the cardholder handles interest-free installment repayment, the bank will charge a certain standard handling fee every month, which is generally much higher than the expected annualized interest rate of the same grade loan concessions.
Myth 6. Convenience of dual-currency credit card
Some cardholders value the convenience of dual-currency credit card consumption and RMB repayment. In fact, some banks stipulate that cardholders must purchase foreign exchange at bank outlets and then enter the account for repayment; Some banks offer to purchase foreign exchange by telephone, but if the cardholder forgets to notify when it expires, even if there is enough RMB in the card, it cannot be used to repay the overdraft.
I don't want the credit card limit to become zero, so I have to avoid these misunderstandings.
The risk control of various banks has tightened, and a wave of card reduction has hit, which has caused many card friends to complain. There's nothing to say about being blocked. I'm afraid I'll reduce the amount to zero. To tell the truth, it's better to block the card. Don't think to scare you, there are indeed many card friends whose cards cost tens of thousands of dollars have now become zero-line cards. If you don't want to follow in their footsteps, these card misunderstandings are best avoided.
Analysis of the reasons why the credit card limit becomes zero;
1, illegal card use
The most common is cashing out. Some people say that I usually have no consumer demand. Anyway, credit cards are used to swipe cards. The bank just wants us to make money by swiping our cards. If they can make money now, why not do it? There is nothing to say about this. Anyway, most credit card limits have been reduced to zero because of cash withdrawal.
2. The credit card is idle
Many people get credit cards and don't use them, but they want the bank to withdraw the amount. This is pure daydreaming. If you don't swipe your card, how can the bank know your spending power and repayment ability? For those credit cards that are basically not used, or credit cards with a monthly credit card amount of 10%, the probability of bank reduction is still relatively large.
3. The credit card has expired.
This is also the most important reason for the reduction of credit cards. After all, it is not difficult to borrow it again. When the bank approves your card, it naturally hopes that you will be honest and repay it on time to show your sincerity. If you can't even meet this basic requirement, who will the bank reduce if you don't reduce it? The overdue time is too long, and it is only a matter of time before the quota is reduced to zero.
4. The card transaction is abnormal.
Generally speaking, credit cards are stolen. When the bank detects that your card swiping behavior is abnormal, it will generally reduce the credit limit or freeze the credit card to ensure the security of the cardholder's funds.
In short, if you don't want to be downgraded, you must avoid these misunderstandings in using cards. Don't worry if the amount is unfortunately reduced. As long as the card is used in the future, the limit will be restored.
That's all about the misunderstanding of credit cards.