Credit cards cannot repay each other for the following reasons:

First of all, using one credit card to repay another credit card is actually using bank funds. Repayment means that the bank's funds are occupied for a long time. In fact, the cardholder has not repaid the debt.

Secondly, mutual repayment between credit cards is a very risky method, because if one of the credit cards cannot repay on time, the other credit cards will be affected. If one of the credit cards cannot repay on time, it will Interest and late payment fees will accrue. In the long run, the cardholder will experience interest compounding and leave a "bad credit" record with the bank.

First of all, cashing out on credit cards has increased the instability in my country’s financial order. Our country has a strict access system for financial institutions, and there are a series of strict regulations to monitor the inflow and outflow of funds from financial institutions.

Those criminals unite with merchants to engage in untrue transactions such as swiping credit cards through virtual POS machines, and engage in credit card cash withdrawals in disguise, but they are outside the legal framework and violate the country's legal provisions on financial business franchising. , deviates from the People's Bank of China's relevant regulations on cash management, and may also provide facilities for illegal activities such as "money laundering", which undoubtedly creates unstable factors for our country's overall financial order.

In addition, the increase in bank risks and the formation of a large number of non-performing loans will also destroy the integrity environment of society and hinder the healthy development of the credit card industry. Secondly, illegal cash withdrawals cause huge harm to card-issuing banks. The vast majority of credit cards are unsecured lending instruments. As long as the cardholder makes a purchase, the bank must bear a share of the repayment risk.

So under normal circumstances, banks prevent overdraft risks through high overdraft interest or cash withdrawal fees. However, the act of cashing out on a credit card circumvents the high cash withdrawal fees set by the bank and crosses the bank's prevention threshold.

In particular, some loan intermediaries help cardholders forge identity materials and continuously increase credit card limits. The normal business of banks has been greatly disrupted, and it has also brought huge risks. Due to the large amount of cash-out funds, cardholders are tantamount to obtaining interest-free and unsecured personal loans.

The card-issuing bank cannot know the use of these funds, making it difficult to effectively identify and track them. The form of credit risk in credit cards has actually evolved into the credit risk of investment or speculation. Once the cardholder is unable to repay the cash amount, the bank will lose not only loan interest, but also a large amount of assets.

Finally, for individual cardholders, credit card arbitrage also brings great risks to themselves. On the surface, cardholders obtain cash by cashing out and reduce interest payments.

But in fact, the cardholder needs to repay the loan after all. If the cardholder cannot repay on time, he will have to bear the overdue repayment interest which is higher than the overdraft interest, and may cause negative consequences. If you have a poor credit record, it will be very difficult to borrow funds from banks in the future, and you may even have to bear the legal risk of lack of personal credit.