Many card friends have always kept a respectful distance from credit cards, especially when they saw negative news such as "XX was sentenced for credit card overdraft and X was unable to repay" and "XX went to find someone to handle the stolen credit card", and they felt that they should not handle the credit card.
In fact, credit cards are not a scourge. A large part of these negative news are caused by the cardholder's problems, which have nothing to do with the credit card itself. There is absolutely no need to refuse a credit card.
You know, for many people, the advantages of holding a credit card outweigh the disadvantages. Here's why you use a credit card and how to choose the right one.
Analysis on three benefits of credit card;
1. Accumulated credit: People who have never dealt with banks are blank records in the central bank's credit information system. If you want to change this situation, you can start by using credit cards. As long as you apply for a credit card, swipe your card frequently and repay it on time, you can establish a good personal credit, which is very beneficial for handling bank-related business in the future.
2, save money: credit cards can be overdrawn, but don't be blind when swiping. It's best to know what discounts you can enjoy with a credit card, so you can save money by swiping it. For example, if you apply for a credit card of Bank of Communications, you can participate in the "Red Star Five" activity, and you can get a credit card refund by swiping your card in the supermarket.
3. Temporary emergency: For example, if you lose your laptop, you have to buy it immediately because of work needs, but you have no savings and you can only borrow money from others to buy it. If you have a credit card, you can buy a computer with it immediately, or you can choose to repay it in installments to relieve the pressure. In short, having a credit card with a certain amount can make you more comfortable in the face of emergencies.
The advantages of credit cards are more than the above three points, so I won't introduce them one by one. You can experience it yourself in the process of using the card.
What is the purpose of issuing credit cards by banks?
Credit card, also called debit card, is a consumer loan service provided by banks.
After commercial banks issue credit cards to eligible consumers, cardholders can go to specialized commercial service departments for shopping or consumption, and then the banks settle accounts with merchants and cardholders, and cardholders can overdraw within the prescribed limits.
The advantage of a credit card is that, compared with a savings card, holding a credit card can be used for credit consumption, and there is no cash in the card, only the consumption amount needs to be returned on schedule.
With the improvement of residents' income level and the change of consumption concept, more and more young white-collar workers and post-90 s youth regard borrowing consumption as a normal behavior and can enjoy a higher quality of life in advance. Seeing the huge demand in this area, banks focus on developing this business.
As a loan business, banks develop credit card business for many purposes:
First, increase the loan business to obtain interest income;
The second is to increase customer stickiness, provide more products, and attract customers to handle other financial services in banks through various means;
Third, increase contact with special merchants, establish a credit card customer database, and analyze customers' income levels and consumption preferences, so as to serve the development of other products and businesses.
According to industry estimates, credit card business is the business with the largest spread in banking business, and its spread is much higher than that of mortgage. The reason is that credit cards will charge customers interest, late fees, annual fees, handling fees, POS card fees, SMS notification fees and so on. , the comprehensive income is higher than other loan products.
Since 1985 China Bank issued the first credit card, the number of cards issued, the number of cards issued and the transaction volume in China have all achieved tremendous growth in the past 30 years. Credit card business has become the most potential department in bank retail business.
As of 20 17, according to incomplete statistics, domestic banks have issued nearly 700 million credit cards, and even three of them have entered the "100 million yuan club". The credit card business of several joint-stock banks has contributed more than 40% to the performance of branches.
Although credit cards are easy to use, they are different from savings cards. It is recommended that you pay special attention to the following aspects in daily use:
1, there is a charge for cash withdrawal.
If it is an overdraft, it is equivalent to borrowing cash directly from the bank. Generally, banks charge interest and handling fees. Even if we take the "existing money" from the credit card, the bank is interest-free, but it is still possible to charge a handling fee. In short, don't treat credit cards as savings cards.
Step 2 charge an annual fee
3, POS machine related.
Just like many Internet products are charged at the B end and free at the C end. When we use the POS machine to play with the credit card to buy goods, although the bank doesn't charge more from our account, it may get more commission from the merchants.
4. There may be related expenses such as card replacement fee and loss reporting fee.
These are details that are easily overlooked, so you need to know them in advance to avoid inconvenience.
In addition, remember to repay in time. Even if you don't have enough funds at the time of repayment, you should choose to repay by installments or pay off the "minimum repayment amount". Only in this way will your credit be unaffected. Otherwise, if the repayment is not made on time, it will not only affect the credit report of the People's Bank of China, but also suffer the "penalty interest" of the bank, and even be investigated for criminal responsibility of "malicious default".
Why do banks develop credit card business?
Credit card not only enables banks to attract customers who can't live near banks, but also provides excellent opportunities for new credit card users to develop other financial products of banks. There are both new sources of income and new sources of deposits, and their attractiveness has triggered a high degree of competition. As more and more businesses accept credit cards, it is more and more convenient for cardholders to use them. On the contrary, with the increase of the number of cardholders, the opportunities for merchants to promote their products are also increasing. The two promote each other and promote the development of credit cards, while banks also benefit from cardholders and merchants.
Why do banks handle credit cards? These are the main reasons!
I believe many people have this experience. The bank will send the user a reward message introducing the card. As long as the user introduces the generated QR code to friends and relatives, the introducer will get a certain reward after the other party successfully activates the card. Then someone asked, why did banks launch credit cards? Then let's talk about this problem briefly.
1. Why did banks launch credit cards?
1. Accurate positioning: Compared with bank salesmen going out for exhibitions and sweeping buildings, the new users introduced by this "peer-to-peer" method are more accurate in positioning, and most of them are people who need useful cards. Moreover, the bank lets the salesman work, and he needs to be paid every month. The introducer doesn't need it. Just give him a reward.
2. Complete the performance: Since the introduction of the card is effective and helpful to complete the performance requirements of the credit card business department, banks are naturally willing to adopt this method under the circumstances of low cost and good effect.
3. Business transformation: Since the introduced person has applied for a credit card in the bank, the bank will introduce him to other businesses, such as loans, funds and wealth management. As long as the card and repayment are normal and good. This can maximize the development of the "expected income potential" existing in customers.
The above is about "Why do banks launch credit cards?" The answer, I hope to help everyone. Generally speaking, it is not only beneficial for banks to get accurate potential customers at low cost, but also for referees to get rewards such as points. However, the introduced person should pay attention to his own needs, not lose face. After all, they have to pay back the money after the subsequent credit card.
Why do banks sell credit cards?
Banks have been promoting credit cards because it is related to performance.
: 1, the bank successfully promoted credit cards to customers, and the customers handled them, and their performance increased. Moreover, handling credit cards helps to increase user stickiness. Because credit cards often provide many activities, such as exchanging points for gifts, customers participating in activities, and cooperative businesses making profits, banks can also make some profits. If customers recommend these activities to friends around them, it will also increase consumer groups invisibly.
2. In addition, many people who return their credit cards will contact the bank's debit card for automatic repayment. In this way, customers will continue to deposit money into debit cards, and savings deposits are also one of the important sources of profits for banks. Also, banks sell credit cards to consumers, and the profits are relatively large.
3. After all, many credit cards will charge an annual fee, and many credit card businesses will also charge a certain fee, such as cash withdrawal and installment. If the credit card is not fully repaid within the prescribed time limit, the bank will still charge interest.
4. The first reason is to complete the performance appraisal. There are two channels for banks to handle credit cards. In addition to the relevant business departments of the bank, the bank will "outsource" other institutions to "sell" credit cards. In either case, there is usually a performance appraisal, which is related to salary.
The second reason is that although there will be "bad debts", banks can still make a lot of profits by handling credit cards for users. Credit card consumption has an interest-free period, and interest will not be generated after the interest-free period. In addition to interest, banks can also charge cash withdrawal fees, and there is no interest-free period for cash withdrawal. Coupled with the cash withdrawal fee charged in proportion, the bank's profit is quite high.
6. A large number of credit cards are issued, and the banking business is also extensive. Credit card is also one of the income-generating projects, because after we apply for a credit card, even if we don't use it for a long time, as long as we activate it, there will be some expenses. There is a management fee, which is generally calculated on an annual basis. Although it seems that there is not much money in a year, the total amount of credit card issuance is very large, and the accumulated income is also considerable.
7. There are two other fees that will be charged frequently: interest and handling fee. As long as you swipe your credit card, these two expenses are hard to avoid unless you pay in full. In fact, many people will divide the arrears into multiple periods, so that each period will cost more. The greater the amount owed, the higher the interest, the more installments and the higher the handling fee. Moreover, cardholders can't pay back money at will, which is a stable profit for banks.
What are the advantages of getting a credit card? Why do bankers recommend it? You'll know after reading it
Especially for many young people, they are more willing to spend on spiritual entertainment. Many people become moonlight families just to improve the so-called sense of material experience, and even many people choose to spend in advance to meet the current needs. Bank card has become one of the best choices for many people, which has led to the rapid development of credit card business in China. Why are banks so keen on handling credit cards?
Why do banks always recommend handling and using credit cards?
1. The amount of credit cards issued is an assessment of employees' business, and credit cards also help banks grasp the consumption concept of young people. More and more young people enjoy the benefits brought by the convenience of using credit cards while enjoying the consumption in advance, so the customers and income of banks have also been improved, ensuring that they can occupy a certain market share.
2. Bank employees can also get a part of commission when implementing credit cards, so many people are very willing to promote credit cards to the public to get commissions and commissions.
3. Banks have certain requirements for the issuance of credit cards, and they will be punished if they fail to complete the task, so many banks are very concerned about the implementation of credit cards.
For some people who have the habit of spending in advance, credit cards are not harmful to themselves, so they are very willing to accept bank staff to promote credit cards.
How do banks make money through credit cards?
1. In fact, the profits behind the promotion of credit cards by banks are still extremely rich. First of all, there are loan interest and late fees. Many people will say, if I am not overdue, how can there be a so-called late fee?
In fact, we sometimes have the pressure of full repayment, so many people choose the minimum repayment amount. Although it is not overdue, the unpaid part will still generate interest, and the profit is very rich.
2. Many credit cards have annual fees. Some banks don't have an annual fee, but they will stipulate how much to spend each year or buy bank wealth management products, so banks will always make profits.
What are the advantages of applying for a credit card?
1. Before the popularization of mobile payment, many people had to carry a lot of cash when they went out, and their safety could not be guaranteed. Now the popularity of credit card POS machines can reduce the security risks and troubles brought by carrying a lot of cash.
2. Most credit cards have various consumption policies, and there are various preferential policies according to different usage scenarios, whether it is redemption of points for gifts, cash back in consumption abroad, free first class, etc. So many people can get a lot of free benefits.
Everyone uses credit cards, and a good consumption record can also improve our level, and we can get higher loans and lower interest. Many people are also loyal to credit card consumption.
Why introduce credit card business? Let's stop here.