A credit card, also called a debit card, is a credit certificate issued by a commercial bank or a credit card company to a consumer with qualified credit. It is in the form of a card with the name, expiration date, number and cardholder's name printed on the front, and a magnetic stripe and signature strip on the back. What's the use of applying for a credit card? You should know this.

what's the use of a credit card

1. Consumption in advance

Consumption in advance is the basic function of a credit card, which can be used to pay the daily consumption and shopping funds first through the credit card limit, and then repay the bills during the reconciliation period on the repayment date.

2 automatic bookkeeping

The credit card itself has the billing function, so that the transactions paid by credit card consumption can be directly reflected in the bills of each period, which indirectly realizes the billing function.

3 Installment payment

Installment payment means that users can use the credit card bill installment function to allocate the bill in each period, thus reducing the repayment pressure of each period.

4 overdraft cash withdrawal

The credit card supports users to use the cash withdrawal function directly to meet their urgent need for cash.

5 realize pre-authorization

users freeze some funds for future payment before spending, and then they can cancel the frozen funds after spending at the merchant's place. For example, they usually use the pre-authorization function when making hotel order payment, and then make the actual payment when leaving the store.

The above summarizes the five uses of credit cards. Never think that credit cards are useless.