What are the advantages and disadvantages of using a credit card?

Benefits of credit cards: It can relieve financial pressure; online consumption is convenient and fast; it can accumulate personal credit history. Using a credit card and paying back your loan on time can increase your credit limit.

This saves money. Many banks cooperate with merchants for their credit cards. For example, there will be cash back discounts for swiping your card, and there will be discounts for eating, watching movies, supermarket shopping, filling gas, car washes, etc. In addition, credit card points can be redeemed for some gifts in daily life, and even some lottery activities, and the points can be used as money.

Relieve financial stress. Sometimes money is needed urgently and there will be a certain amount of financial pressure to pay a large amount of money at once. If you have a credit card, you can use it to pay in installments and enjoy your favorite items in advance. The remaining money on hand can also be used for daily expenses and turnover.

Online consumption is convenient and fast. Many online malls or Taobao stores have opened credit card payment methods, catering to consumers' preference for using credit cards for consumption. Although there are no points for credit card online purchases, its convenient and fast payment method is liked by many people.

Accumulate personal credit history. Even if there is no big turnover demand, it usually costs money. If you use more credit cards and make your payments on time, you can increase your credit limit and credit rating. You will have a good credit record in the personal credit database of the People's Bank of China, and it will be much easier to get approval for a loan to buy a house or a car in the future.

Credit card overdrafts are becoming more and more serious. Are people’s attitudes towards consumption biased, or have banks gone bad?

With the economic progress of society, it has gradually become more closely integrated with international standards. The concept of advanced consumption in Western countries has been accepted by people. It is called living in the present and enjoying the future. In fact, while advancing consumption, , you are using your own credit, which is also the familiar credit rating. If your credit rating is very poor, no financial institution may be willing to lend you money in advance. If you have a certain ability to make money, at the appropriate time conditions. Preemptive consumption is okay because the money you "should" spend is saved for investment or other living expenses. This is a "money begets money" model.

Advanced consumption is A double-edged sword. Use it well to coordinate funds in life. If you use it poorly, it will be a boulder on your shoulders. Riding the bull and watching the bear believes that only rational consumption is within the scope of one's ability. "Borrowing" "Advanced credit limit, and the fact that you can borrow and repay it will allow you to enjoy the discount and not be troubled by future repayments. You can use the credit card as a financial management tool. If your cash is invested, as mentioned in the previous article , you use the card for consumption, which is equivalent to using cash without interest, and you can also get the financial interest of your cash. Of course, you must pay back the money on time, otherwise the cost of default will be high and it will not be worthwhile.

Credit card consumption is the demand preference of some consumer groups and is also a consumption habit. With the development of the economy and changes in the social environment, electronic technology has become more and more popular, and people have gradually moved away from the habit of cash payment. Just kidding, Now you have no chance to pick up money while walking on the street. This also illustrates the current situation of social development. Pre-consumption is just a derivative of the popularity of credit cards. Credit cards themselves do not take the blame. In fact, the emergence of credit cards has also alleviated the pain of some people. Due to economic pressure and temporary difficulties, what we need to guide is the consumption concept of rational use of credit cards, rather than putting the cart before the horse and promoting the concept of advanced consumption.

Mainstream users of credit card installments have become young people and are spending more and more. The more consumption concepts change

Credit card installment has become an important business of bank consumption finance. Simply put, credit card installment means that the holder repays the bank funds in installments after completing the consumption through the credit card. , similar to personal mortgage loans, there are often multiple options such as 3-phase, 6-phase, 12-phase, 18-phase, 24-phase, etc., generally including bill installment and consumption installment, and bill installment is the mainstream mode preferred by current users.

Xiaocai learned from various banks that the biggest advantage of credit card installment is that it can relieve the holder of the pressure of repaying the credit card expenditure in one go. On the contrary, you have to pay bank fees, even if it is. If the loan is repaid in advance, the paid handling fee will basically not be refunded, which objectively increases the cost of the holder.

The age group of preferred installment users is concentrated between 22 and 35 years old, "mainly." They are all young people with strong willingness to spend.”

Relevant persons in charge of various banks told Xiaocai that their expenses were mainly in supermarkets, department stores, home appliances, car purchases, decoration and other areas. Although users are responsible for a certain handling fee, this installment method allows holders to reduce their short-term repayment pressure a lot, and will not cause credit damage due to overdue payments. They are willing to pay more costs, and the bank provides affordable handling fees, which is even more Strengthening their confidence in this way of spending.

Mr. Y, the official of Xiaocai Ke, said that he often receives text messages from the bank recently about the benefits of bill installments: when handling bill installments, you can enjoy a 20% discount on the handling fee; when handling cash installments, the single amount exceeds 5,000 yuan (inclusive). ) and for periods of 6 or more (inclusive), you can enjoy a 30% discount on the base fee rate.

Some banks also said that when you apply for bill installment through mobile banking, online banking, SMS, WeChat and other channels, you can enjoy a 25% discount on the lowest handling fee; when you apply for cash installment through mobile banking, online banking, branches, and customer service centers, the lowest You can enjoy a 25% discount on the base fee rate.

What is the most useful way to use credit card installments?

1. Install bills later:

If you spend money on bills later, you can not only have the longest interest-free period, but also pay the bills. If you apply for installment repayment later, you can also extend your repayment date. At this time, installment payment is the best.

2. Find a good time for installment:

Generally speaking, installments applied after holidays have the highest success rate in increasing the amount. You can concentrate your credit card spending in a period of time, increase your credit card amount to more than 70%, then make installment repayments, and apply to the bank to increase the credit limit. The success rate is highest at this time.

3. Bill installment VS cash installment

We all know that installment is conducive to increasing the limit, but there are always people who confuse bill installment and cash installment. The so-called bill installment is the preferred installment operation when the bank issues a bill to you after you spend it, while cash installment is a cash loan issued to you separately by the bank for cash withdrawal. Comparatively speaking, bill installment is more conducive to increasing the limit than cash installment.

Many people use credit cards to make purchases in advance. How do you evaluate this consumption method?

Nowadays, many people will apply for credit cards to make purchases, especially many young people now adopt the concept of consumption first and pay later, which is a type of loan product that often uses credit cards to spend. This has also led to many young people now having debt problems. Therefore, in the editor's opinion, credit cards are also having some impact on today's young people, allowing these young people to consume irrationally and overdraw their future. . This way of consumption is very frowned upon here, especially with credit cards, because once you apply for a credit card, you will often be unable to control your desire to spend, and then you will buy random things, and you will not be able to save money in the long run. . Moreover, repaying a credit card is also a very difficult thing. Many people will encounter the situation of overdue credit cards, especially when the repayment date comes, which is a very headache, so some people will take online loans to repay the credit card money. , tearing down the east wall to make up for the west wall, this method will only lead to people getting deeper and deeper into the situation of borrowing.

Why do people have the concept of consuming in advance?

Nowadays, everyone has the idea of ????consumption in advance because many people are very lacking in property management education in the education they receive. In addition, they want to compare due to their own vanity. The credit card method itself is to be popularized in some European and American countries. In our country, not many people use it. However, with the changes in everyone's economic concepts, and the fact that young people are not particularly clear about financial management concepts, so This will make people have the idea of ????spending in advance. At the same time, swiping a credit card will always give people the illusion that they can buy money after swiping the card. If they do not spend too much money, it will lead to uncontrolled consumption. When it's time to repay the loan, you will find that you have spent too much money. In the final analysis, it is because of your lack of self-control and you want to compare with them.

Is early consumption beneficial to social development?

In fact, early consumption is conducive to social and economic development. It can help expand production and increase employment. It is of great benefit to the entire social and economic development. However, if early consumption continues without restraint, , and at the same time, consumption beyond one's ability. This consumption method will have a certain impact on individuals and is also detrimental to social development.

Summary

Finally, pre-consumption has become the norm in the lives of many young people. What we need to do in this situation is to change our mentality and consume rationally.

This concludes the introduction to credit card consumption concepts and college students’ credit card consumption concepts. Have you found the information you need?