How to apply for a credit card loan? Credit card small credit loan operation guide

When it comes to credit cards, everyone's first reaction may be to cash out and overdraft consumption. In fact, credit cards can also be used to apply for loans. The so-called "credit card loan" literally means relying on the credit card platform to carry out credit card installment or cash advance business. Some banks have launched credit card "credit card" business, making application easy and fast. The following is a detailed introduction to the credit card small credit loan operation guide.

Credit Card Small Credit Loan Operation Guide

To apply for a credit card loan from a certain bank, the prerequisite is to have a credit card from that bank. After you get your credit card, you can apply for a small credit loan from the bank. To apply for a credit card loan, cardholders generally need to submit proof of identity, employment and income. Below are the detailed steps for credit cards.

What you must do:

1. Call the bank to apply.

Remember, never say you want to apply for a credit card loan right away. Remember the term "cash installment". Some banks have other names, such as Guangfa's "everything red". Pudong Development Bank is called "Wanyongjin. Anyway, if you don't know, just say you want to apply for cash installment.

2. Provide credit card information.

Customer service will ask you 3 questions :

1. Name, last 3 digits on the back of the credit card.

2. The purpose of applying for cash installment is as long as it is for re-education.

3. Confirm the number of installments for cash repayment. Ask the customer service how many installments there are and what the service rates are. Let him calculate it for you, and then you can measure the repayment in several installments.

What the bank needs to do:

1. Review your information. Whether the information you provide is accurate, you need to confirm that it is you who is handling it.

2. Review how much you can handle. The limit is determined based on the applicant’s daily card usage, credit card limit, and repayment status. The higher the credit limit, the higher the amount of cash installments that can be processed.

After the final review is successful, you will provide a debit card account number, preferably a debit card from the credit card issuing bank. If it is a debit card from another bank, a handling fee will be deducted.

Conclusion

When applying for a credit loan, the debtor does not need to provide collateral or third-party guarantees, and can obtain a loan based only on his or her own credit. Therefore, this kind of loan attracts many young people who do not have much savings but need money. However, the disadvantage of credit card loans is that the amount of funds that can be processed is smaller, which is more suitable for applicants with short-term financial needs.

How to apply for a credit card?

Many banks provide exclusive products for credit card (debit card) customers. As long as the user's credit card (credit card) has no overdue repayment record, the user can apply directly at the issuing bank or apply for a credit card (loan) that requires certification. With credit card (credit card) billing, users can obtain higher loan amounts and lower loan interest rates with credit card (credit card) billing.

Of course, generally no credit card (credit card) is required. You can also apply for credit card), but the above two will make it easier for users to pass the loan review.

The difference between credit card (credit card) and small loan is so big!

Often! Someone asked me which one is better, credit card (credit card) or small loan. In fact, the person who asked this question didn’t know much about credit card (credit card) and small loan. In essence, credit card (credit card) is better. Cards) and small loans are both credit products, and they are both credit lending services based on the user's personal credit and comprehensive conditions. Of course, they are different product categories after all, so there are differences in the following aspects.

1. Different sources

Credit cards (credit cards) come from a single source. In China today, only banks are qualified to issue credit cards (credit cards), and small loans are basically the company’s products. For example, Jiebei, Weilidai, JD Baitiao, Baidu Youqianhua, etc., they are all products of the company. Of course, banks also have small loans, but they are called differently. They are usually cash installments beyond a fixed amount.

Generally, genuine small loans will also be subject to credit reports, which is the same as credit cards (credit cards).

2. Different costs

Credit cards (debit cards) enjoy an interest-free period. If you are just spending money, you can use it at zero cost. There are no fees when not in use, but there are fees when withdrawing cash or making installment payments.

But small loans are different. As long as you apply for it, there will be interest regardless of whether you use it or not, and the interest rates are generally relatively high.

In addition, credit cards (credit cards) also have added value, such as points you can get by swiping credit cards (credit cards), discounts, etc., which are not available in small loans. Generally speaking, the cost of credit cards (debit cards) is much lower than that of small loans.

3. Different repayment methods

There are many repayment methods for credit cards (debit cards), including full repayment, minimum repayment, and installment repayment.

Small loans require fixed-period, fixed-amount repayments, that is, the repayment amount is the same every month, and they need to be repaid according to the specified number of periods and amount. The repayment method is not as flexible as a credit card (credit card).

4. Different application methods

Credit card (debit card) application materials are relatively simple and can be used repeatedly once applied. As long as the credit card (credit card) is in normal condition and repaid on time, it can be used continuously in the future.

The application procedures and information for small loans are generally much more complicated than those for credit cards (debit cards), and they cannot be used after repayment. If you need to use it later, you will have to prepare the information and apply again, and it will have to be approved again, and it may not be approved.

Xiaowa said card key reminders

Based on the ease of use and cost of credit cards (credit cards) and small loans, the advantages of credit cards (credit cards) are more obvious. And now banks don’t like people with small loan records. If you use small loans, as long as there is a record in the credit report, your subsequent applications for credit cards (debit cards) and loans will be affected. Some people were rejected when applying for a home loan because they had used small loans. Even though they repaid the loans on time, the bank's rejection conditions included one of the following:

As long as the applicant has a record of small loans , whether it has been paid off or is in the process of being repaid, it will be rejected.

So, which one would you rather use, credit card (credit card) or small loan?

Can I use a credit card?

No.

Credit cards do not have loan functions, but currently China Construction Bank has a large-amount special installment business for car purchases and home decoration. It provides a special installment amount on the basis of the original credit card limit. , for customers to buy cars or home decoration.

However, there is no way to withdraw this amount. It can only be used in installments by swiping the card at its designated cooperative merchants.

Credit cards and loans are two different concepts. Credit cards have installments and overdrafts, but there is no such thing as a loan.

Banks do have credit cards. China Merchants Bank, China Construction Bank, China Minsheng Bank, China Guangfa Bank and Ping An Bank have this business. Credit card is actually a credit card pre-loan business launched by banks.

Different banks have different credit card limits. For example, Guangfa Bank stipulates that the maximum loan limit is 100,000 yuan, while Ping An Bank stipulates that the maximum loan limit does not exceed 50,000 yuan.

Credit cards do not accrue interest, but a certain handling fee will be charged.

However, the credit card processing fee is lower than the credit card cash withdrawal processing fee, but higher than the bank's benchmark loan interest rate for the same period.

For those who often have small needs and want to do business, a credit card is more suitable for you. The interest rate is relatively low and can be applied for.

Credit cards can also be ""

For businessmen who need working capital, flexible use of credit loans can save a lot of interest. Many joint-stock banks have launched credit card "credit card" business, which solves many people's urgent need for small funds. The investigation found that including Industrial Bank, Guangfa, CITIC, Shanghai Pudong Development Bank and Ping An Bank can provide this service.

Credit cards have many benefits

According to people in the banking industry, credit cards are different from overdrafts. Banks will transfer cash within the cardholder’s credit limit to the cardholder based on the cardholder’s application. For debit cards in the name of the cardholder, the cardholder pays different expected annualized interest rates based on the number of repayment periods. However, the maximum loan amount for each bank's credit card pre-loan business is different. For example, Industrial Bank and Ping An can lend up to 50,000 yuan, while China Guangfa Bank can lend up to 100,000 yuan. Some banks also set loan limits based on the proportion of the credit limit. The maximum credit limit for Shanghai Pudong Development Bank is 100% of the credit limit. CITIC Bank can also apply for a credit limit of up to 90%.

In addition, there are banks that will provide loans based on 10% of the total assets provided by customers, up to a maximum of 1 million, but the use of funds is limited to business activities.

However, the expected annualized interest rates for loans that do not require collateral are much higher than those for mortgage loans, and the expected annualized interest rates for loans from various banks are basically similar. Some banks claim that this business has zero interest, but cardholders have to pay a handling fee. Although the rate is lower than direct cash withdrawal with a credit card, it is much higher than the expected annualized interest rate of the loan benchmark for the same term. However, the advantage of this type of loan is that customers can calculate interest on a daily basis. Generally, the expected annualized interest rate of daily loans is around 0.5%. Therefore, the expected annualized interest rate of a one-year loan is as high as 18, while the expected annualized interest rate of a bank mortgage loan of one year is as high as 18%. The interest rate is only 6.

A certain bank has a credit card loan with a maximum limit of 1 million yuan. For example, a citizen's "transfer payment credit card" limit of 500,000 yuan can be applied for once and is valid for three years. The interest is calculated based on the actual amount and number of days used. Five ten thousandths per day to meet sudden or temporary financial needs. If you take a loan for half a year, you can save 15,000 yuan in interest.

Small and medium-sized enterprises can also apply for small credit loans with credit cards

In addition to individuals, small and medium-sized enterprises can also apply for small credit loans with special credit cards. A joint-stock bank has a joint credit card with a domestic portal. After becoming members of the website, small and medium-sized enterprises can apply for this kind of credit card, with a credit limit of 50,000 yuan to 500,000 yuan. The small credit loan they can apply for can be up to 90% of the credit card credit limit.

It is particularly worth mentioning that when small and medium-sized enterprises apply for small credit loans with credit cards, the bank does not price them according to the corporate loan, but basically the same as the loan cost for individuals applying for small credit loans.

Some banks stipulate that after applying for a small credit loan with a credit card, the overdraft limit will be reduced accordingly, and the loan can only be restored to the normal limit after the loan is repaid.

That’s it for the introduction of credit card small loans.