After Baihua will be fully included in the credit report, for ordinary financial consumers, it will not be much different from the essence of a credit card. First, let’s look at the main similarities between the two. Huabei and credit cards are both consumer financial products. As long as they are not overdue, they will not have a significant impact on the user's credit report. In addition, both have a certain interest-free period. As long as you repay the loan on time, there is no handling fee.

Let’s take a look at the specific differences between the two. First, the method of credit reporting. Huabei is different from the credit card declaration entity. Chongqing Ant Consumer Finance Co., Ltd., to which Huabei belongs, is a licensed consumer finance company, and the credit report will be reported to the central bank's credit report system by this company. Credit card is a product issued by a bank and is a symbol of personal credit. Banks report credit information to the central bank.

Previously, users’ credit card records were reported to the credit bureau. Long-term performance is very helpful to the credit bureau, but if there are many overdue times, it will directly affect the approval of personal loans; for a long time in the past, Huabei Internet consumer loan products such as these are outside the central bank’s credit reporting system. If you use Huabei for a long time, your Zhima Credit score will increase. If overdue behavior occurs, overdue interest will generally be charged, Zhima credit points will be deducted, and the limit will be reduced, etc. Lack of deterrence. After the credit report is reported, there is no difference in the impact of Huabei and credit cards on the credit report.

In response to concerns raised by netizens that "Huabei credit reporting will affect mortgage loans," Huabei also stated that using Huabei normally and maintaining good usage and repayment habits will not lead to loan difficulties. The main reasons affecting bank loans are users' bad credit behaviors such as long-term borrowing, excessive borrowing, and overdue borrowing.

From the perspective of interest-free period, credit card interest-free period has more advantages. The longest interest-free period for Huabei is 41 days, and the longest interest-free period for credit cards is more than 50 days. (For example, the accounting date is the 1st of each month, and the repayment date is the 20th of the month. Consumption after the 1st will be included in the next bill, and repayment will be on the 20th of the next month, with the longest interest-free period.)

< p>However, Huabei consumption does not generate points independently, but is generated by the system's comprehensive evaluation after being associated with Alipay consumption. Not every consumption will generate points. The categories that points can be redeemed for are relatively limited, including video website memberships, food coupons, daily necessities, etc.

But Huabei also has its unique scene advantages and processing threshold advantages. As a consumer credit product launched by Ant Group, Huabei users can enjoy a “spend first, pay later” shopping experience. Huabei is closely integrated with Taobao and other scenes to make consumption more convenient, which has indeed attracted many fans.

In terms of application thresholds, credit card risk control review is more stringent, making it difficult for some lower-tier customers to apply. The threshold for spending money will be lower than that of a credit card, and students and special professional customers will get some credit as long as they meet the corresponding conditions. But it should be noted that you must use it carefully based on your income and current repayment ability.

“Huabei’s full access to credit reporting means that Internet credit products have begun to gradually improve the personal credit reporting system. For users, normal repayments will not affect credit reporting. If overdue, credit cards and loans will What impact will it have on your credit score? The garden will have the same effect," said Su, a senior analyst at Analysys International. Related questions and answers: Is the interest-free period for credit cards the same as that for Huabei?

The interest-free period for credit cards is different from the interest-free period for Huabei. Different card-issuing banks have different interest-free periods, with a minimum of 20 days and a maximum of Up to 56 days, while Huabei’s interest-free period is as short as 10 days and as long as 41 days. The actual interest-free period is based on the time difference between the user’s consumption time and the repayment date.

Credit cards and Huabei are similar in nature. Users can enjoy interest-free treatment. Overdue interest will be incurred, and in severe cases, it will affect credit reporting. Do not overdue. Related Q&A: Why should I apply for a credit card? What are the advantages of a credit card compared with Huabei?

First of all, no one said you must get a credit card. In many ways, Huabei is actually a credit card product launched by Alipay. Since Alipay is not a bank, it cannot issue credit cards, so it borrowed the form of Huabei. In fact, the principle is the same, spend it first and pay it back later, and there is a certain interest-free period. As for which one is better, credit card or Huabei, let’s make the following analysis.

1. History of development

Credit cards have been around for decades abroad. Credit cards are still the main payment method in developed countries in Europe and the United States. It has been 20 years since credit cards were introduced in our country. Huabei has only become known and entered the public eye in recent years.

2. Ease of use

Credit cards can be bound to Alipay and WeChat to achieve mobile payment, and Huabei, as an Alipay product, naturally supports mobile payment. There is not much difference between the two in this regard, and both are very convenient to use, except that Huabei cannot be used on Tencent’s WeChat payment

3. In terms of benefits

The benefits provided by credit cards are mainly It is a product that can be redeemed with points. Each transaction will accumulate a certain amount of points, which can be exchanged for various goods and services. For example, use points to exchange for Starbucks coffee, McDonald's meal packages, etc. Some shopping malls will cooperate with banks to launch preferential services. For example, Carrefour supermarket offers discounts every Tuesday by swiping your GF credit card.

The main benefit of Huabei is the reduction of some fees. For example, if you choose to pay for something with an original price of 100 yuan via Huabei, you can save 10 yuan. However, people who have been using Huabei for a long time will not be able to enjoy this benefit. It is mainly to attract people who have not yet opened Huabei or who do not choose Huabei to pay.

4. Penalties for overdue repayment are very strict. If you fail to pay the penalty after the due date, you will face high penalty interest or liquidated damages. Whichever you choose, don’t make late payments. In addition, if you really fail to pay, you may face prosecution or your credit report may be affected. Credit cards are fully interoperable with credit reports, and Huabei is currently being connected. It is estimated that they will be synchronized with credit reports in a while.

5. Application limit

Applying for a credit card is more complicated. The bank also needs to do a background check and determine the limit after evaluation, which takes a long time. Activating Huabei is very convenient and fast. You can activate it on Alipay in just a few minutes. But in terms of credit limit, I think credit cards are higher, and as long as you use them more and repay them on time, the limit will rise faster.

In short, there is no difference between the two that is better or worse. Overall, there is not much difference. They begged you to activate it when you didn't activate it, ignored you when you activated it and could repay on time, and chased you fiercely when you couldn't repay it on time.

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