With the improvement of people's material living standards and changes in consumption concepts, many people will choose to use credit cards (debit cards) to consume first and repay later. Although it is fun to spend money, it is very painful when it comes to repayment. Especially for some people with insufficient financial resources, every repayment day is a time to tear down one wall to make up for the other. Many financial institutions have seen business opportunities and have launched many credit card (debit card) compensation services. So what exactly does credit card (debit card) compensation mean? Let me tell you the difference from credit card (debit card) repayment through this credit card (debit card) strategy!

Credit card (debit card) reimbursement

Reimbursement refers to a type of loan researched and developed by banks or certain financial institutions, such as the well-known Xiaoying Card Loan, Xiaohua Wallet, Huanbei, etc., they will issue a certain amount based on the applicant's qualifications, and then transfer the amount directly to the borrower's credit card (debit card), and then the cardholder will repay in installments. The number of installments is generally within 2-12, and the loan interest is between 0.6% and 1.5%. Generally speaking, the repayment interest of a credit card (debit card) is higher than the minimum repayment interest and bill of a credit card (debit card). Installment interest is low.

Credit card (credit card) repayment

As long as the cardholder’s credit card (credit card) still has 5%-10% of the limit, then some financial Institutional platforms will give you access to small amounts without password or verification. They help cardholders circulate the limit by swiping out the limit, paying it back in, swiping it out again, and paying it back again, which is equivalent to using the credit card ( Credit card) bill will be directly extended to the next period, but the current period's bill shows full repayment, and the cardholder will be charged a handling fee of 0.63%-0.78%/period.

To summarize:

The credit card (debit card) repayment method is more common now. If you do it occasionally, as long as you repay it normally, there is usually no big problem. But if Applying too many times can easily damage the applicant's personal credit score and have a negative impact on future credit card and loan applications. Credit card (debit card) repayment is dangerous, because most of the financial institutions you operate help you repay through online payment channels. If the accumulated amount is too large or the frequency is frequent, it is easy to be compromised by the bank. Control, resulting in serious consequences such as credit reduction and card suspension.