Can I apply for a loan if I have a credit card?

As far as I know, many people now have credit cards, and some people have more than one. So, if there is a need for a loan, can I apply for a loan if I have a credit card? Apply for a loan?

Can I apply for a loan if I have a credit card?

At present, the application for credit card loan business is not very strict. As long as you have good credit and no bad repayment record, you can generally apply. All major banks have credit card loan business, including Bank of China, China CITIC Bank, Bank of Communications, Ping An Bank, Industrial Bank, Shanghai Pudong Development Bank, China Guangfa Bank, Hua Xia Bank, China Merchants Bank, etc.

It should be noted that most banks’ credit card loans are only available to customers with good qualifications such as civil servants, government agency personnel, employees of state-owned enterprises, and employees of Fortune 500 companies. For example, Hua Xia Bank’s “Easy Loans” Dajin”, Jiangsu Bank’s “Jubao Card”, etc. Of course, there are also those that ordinary companies can apply for, such as the "Gouyidai Card" of Bank of Nanjing.

Credit card "loan" is actually what we call "cash installment", so what is "cash installment"? Cash installment, sometimes called cash installment, is generally applied by the credit card holder, or the card issuer actively invites the card holder to apply. It converts the limit on the card holder's credit card into cash and transfers it to a designated debit. An installment method in which the card is returned in specified monthly installments.

To put it bluntly, the bank will convert your credit card limit into cash and transfer it to the debit card designated in your name based on the amount you apply for, and then you will repay it in installments.

How to apply for a large credit card loan?

The first step is quota approval:

In addition to regular credit card application materials, applicants must also provide detailed salary and flow certificates and other more stringent materials.

The second step is the loan review:

This type of loan is generally a personal consumption loan. The customer provides the bank with supporting materials that can prove consumption and requires a larger amount than the cash withdrawal amount, and it passes the review. Afterwards, the bank transfers the money to the customer's credit card, and the customer can withdraw it freely.

Can I get a loan with a credit card?

Credit card loan process:

1. You need to apply for a credit card to the bank and submit relevant supporting materials, such as proof of identity, Proof of income, proof of work, etc., and good personal credit;

2. Wait for bank approval;

3. After approval, you can get a card with a certain credit limit from the bank.

After the applicant gets the card and activates it, he can swipe the card to purchase the goods he needs. However, after overdrafting a credit card, the cardholder must repay it in full and on time to avoid leaving a bad credit record.

Credit card loan definition:

Credit card loan is a credit card installment business launched by banks. The loan amount that cardholders can apply for is generally 20,000-200,000; there are three types of installments: 12 months, 24 months, and 36 months; there is no loan interest rate for credit, and the bank only charges a handling fee. The handling rates for different installments are Each one is different.

Credit card loan conditions

1. Hold a credit card from the bank applying for the loan;

2. Good card usage record;

3 , There are restrictions on the types of credit cards, such as China Merchants Bank’s commercial card, business card, purchasing card, ANA guaranteed card or supplementary card, which do not support cash installment business;

4. Cash installment payments cannot be used for investment (Including but not limited to house purchases, stocks, futures and other equity investments) and can only be used for consumption (including but not limited to decoration, home appliances, weddings, car purchases, student aid, travel, medical care, etc.).

Six banks support credit card loans:

Currently Industrial Bank, China Guangfa Bank, Ping An Bank, China CITIC Bank, Shanghai Pudong Development Bank, and Hua Xia Bank provide credit card loan functions.

At present, the application for credit card loan business is not very strict. As long as you have good credit and no bad repayment record, you can generally apply.

The main methods used by banks are telephone invitations or proactive applications from customers. Through this method, you can apply for loan amounts ranging from 5,000 to 200,000.

The credit card loan transfer borrowing business is only suitable for people who want short-term loans. They can be used for it. It is not suitable for people who want long-term loans. Because after credit card transfer, although the cardholder can repay in installments, the longer the installment, the higher the interest. The monthly interest for 12 periods is about 0.75, which means that 10,000 yuan has an interest of 75 yuan. If you borrow 50,000 in advance and repay it in 12 installments, the monthly interest is 0.75. Calculated in one year, the interest is 4,500 yuan. The current personal loan interest rate for 6 months to one year (inclusive) is 6.06, and the loan interest rate for more than 5 years is 6.60. Compared with traditional loans, the cost of credit card transfer loan business will be higher.

The difference between credit card loans and consumer loans

The scope of use of the two is different

General bank consumer loans will be fixed for the cardholder’s exclusive use, such as buying a house. Loans can only be used to buy houses, car loans can only be used to buy cars, renovation loans can only be used for renovations, consumer loans can only be used for specific types of consumption, and so on. Credit cards have a wider range of uses and are relatively more flexible. After applying for a credit card, you can pay by credit card at all merchants that accept credit cards.

The costs of the two are different

Consumer loans do not enjoy an interest-free period. Lenders need to repay each period on time from the effective date of the loan, and loan costs cannot be avoided. Credit cards enjoy an interest-free period of up to 50 days to 56 days. Cardholders are free of charge for overdraft consumption during the interest-free period. As long as the payment is repaid in full before the due payment date, there is no need to bear capital costs.

The convenience of application is different

Consumer loan application is cumbersome, the process is cumbersome, the approval is strict and the approval time is usually long. In many cases, applying for a consumer loan requires the applicant to provide relatively small amount of information. Many supporting documents, and even provide mortgages, guarantees, etc. Applying for a credit card is relatively easy. Customers can apply for a credit card through bank offline outlets, bank official websites and other websites, as well as through WeChat, mobile apps and other channels. During the application process, you only need to provide personal information and application materials such as proof of employment and income. Credit card approval times are relatively short and application is more convenient.

The repayment methods of the two are different

Consumer loans are repaid on a fixed schedule, while credit cards can be repaid in full, in installments or according to the minimum repayment amount, to the cardholder Provides more convenience.