What are the benefits of getting a credit card? Why do bank personnel recommend it? After reading it, you will know that

Especially for many young people, they are more willing to spend on spiritual entertainment. Many people become moonlight families only to improve the so-called sense of material experience, and even many people choose to spend ahead to meet their current needs. Bank cards have become one of the best choices for many people, which has led to the rapid development of credit card business in China. Why are banks so keen on handling credit cards?

Why banks always recommend handling and using credit cards

1. The number of credit cards issued is a business assessment of employees, and credit cards are also helpful for banks to master the consumption ideas of young people, and more and more young people enjoy the benefits brought by the convenience of using credit cards while enjoying early consumption, so the customers and income of banks are also improved, ensuring that they can occupy a certain market share.

2. bank employees can also get a part of commission when they implement credit cards, so many people are very willing to promote credit cards to the public for commission and commission.

3. Banks have certain requirements for credit card issuance, and they will be punished if they fail to complete the task, so many banks are very concerned about the implementation of credit cards.

4. For some people who have the habit of exceeding consumption, credit cards do no harm to themselves, so they are very willing to accept bank staff to promote credit cards.

how do banks make money through credit cards?

1. In fact, the profits behind the promotion of credit cards by banks are still extremely rich. First of all, there are loan interest and late payment fees. Many people will say that if I am not overdue, how can there be so-called late payment fees?

In fact, sometimes we are under pressure to repay in full, so many people choose the minimum repayment. Although there is no overdue, the outstanding part will still generate interest and the profit will be very rich.

2. Many credit cards will have an annual fee. Some banks have no annual fee, but they will stipulate how much they will spend every year or buy bank wealth management products, so banks will always make profits.

What are the benefits of applying for a credit card?

1. Before mobile payment was popularized, many people had to carry a lot of cash when they went out, so their security could not be guaranteed. Now, the popularity of credit card POS machines can reduce the security risks and troubles caused by carrying a lot of cash.

2. Most credit cards have various consumption policies, and there are various preferential policies according to different usage scenarios, whether it is redemption of points for gifts, cash back in consumption abroad, free first class, etc., so that many people can get many free benefits.

3. People use credit cards, and a good consumption record can also improve our level, and we can get a higher amount of loans and lower interest. Many people are also very loyal to credit card consumption.

why do banks like you to get a credit card?

every time you go to the bank to apply for a debit card, will the bank staff remind you to apply for a credit card and tell you that it is free to apply at their bank, and there are many preferential activities? Then, why are bank staff keen to let you apply for a credit card?

Many people will have this experience. E-mail boxes and supermarkets are flooded with credit card advertisements. Everyone is puzzled: why do banks love issuing credit cards so much? It is even more puzzling to run a credit card bank and send water cups, lunch boxes and luggage case. What does the bank want? Below, the fire eye will analyze the problem for everyone-

the misunderstanding of ordinary cardholders

Many cardholders think that it is unprofitable for banks to issue credit cards on themselves. The reasons are as follows: If I swipe enough times a year and repay in time during the interest-free period, the bank can't collect fees from myself. On the contrary, I can enjoy various discounts offered by merchants, such as eating at half price. There are not a few people who have this idea. In fact, there are many things in life that seem to take advantage but actually suffer. If you don't understand the principle, you will often lose big because of small.

As an intermediate business of banks, credit cards can create huge profits for banks without occupying a lot of funds. In addition to the common income of merchants' commission rebate, penalty interest and fee income, there are other factors that many people don't know about the bank's love for issuing credit cards-< P > 1. Increase the number of customers < P > Customers are the bank's biggest resource. Customers can not only provide deposits for banks, but also have loan needs. The large-scale issuance of credit cards is conducive to increasing the number of customers, especially to establish contact with brand-new customers.

2. Understand the spending habits of cardholders

Why Taobao can push the products you are interested in to you every time depends on big data. Credit card consumption record is also a big data. As long as data mining is carried out, consumers' living environment and consumption concept can be roughly seen. As long as you master these core information, you can make effective sales. If the bank can locate the credit card holders who consume gas every week in advance, and then distribute the list to the subordinate car loan departments for sales reference, the response rate can be significantly improved.

3. Establish a long-term customer relationship

As one of the products, the nature of this product determines that it can establish a long-term relationship with customers in an ideal state. This can improve customer loyalty and stickiness to a certain extent.

in fact, you are at a relative disadvantage in the game between you and the bank about credit cards. The main reason is that you and the bank are in an information asymmetry position.

in order to avoid being caught in a storm because of ignorance, we must evaluate whether we need it before handling credit cards. Credit cards are suitable for people with stable income and strong self-control, otherwise what seems convenient will actually become your burden. Credit card, also called credit card. It is a non-cash transaction payment method and a simple credit service. The purpose of issuing credit cards by banks is to make money, and credit cards are equivalent to bank lending. So it wants more people to use credit cards.

why do banks issue credit cards?

why do banks issue credit cards?

Banks issue credit cards to make money, or to be precise, to make money without risk.

When a bank issues a credit card, it is actually lending. Lending is not as simple as saving, and banks must consider the risk of capital. In order to control the capital risk, banks have established a set of credit system as an important basis for corporate and personal loans. With the credit mechanism, but without the credit records of customers, banks still have no way to judge the Excellence of customers. In order to establish a perfect credit system, banks must introduce a simple and easy way for all customers to borrow money, so credit cards appeared.

Because credit cards have the following characteristics:

1. The audit, card making and issuance of credit cards are all procedural, and the issuance cost is very low compared with other loans.

2. Credit card has the widest coverage among all loan methods of banks.

3. The credit card issues a bill once a month, and the customer must repay it every month, which is the fastest way to return funds.

4. Credit card is the most profitable of all bank loans.

5. Credit card is the lowest risk lending method.

As a special financial commodity and modern financial tool, credit card is an internationally popular advanced settlement means, payment tool and novel consumer credit method, which is increasingly favored by people. The issuance of credit cards gives banks a new means to win deposits from special merchants and credit card customers, which is conducive to expanding bank transfer settlement business and increasing the source of bank credit funds, thus obtaining more interest and speeding up social mobility. In addition, due to the use of credit cards, cash transactions are changed to transfer settlement, which replaces a certain amount of currency in circulation in the market, reduces the circulation of currency, and reduces the funds spent by the state on currency printing, allocation, transportation, warehousing and delivery every year. With the issuance and use of credit cards, cardholders can avoid the inconvenience and risk of carrying a large amount of cash, and at the same time, they can easily obtain bank loans through overdraft. As a special merchant, due to the credit guarantee of the credit card issuing bank, special merchants can provide goods and services to cardholders with confidence, thus expanding the sales volume of goods, reducing the workload of collecting money and counting money, and simplifying the process of payment, bookkeeping and checkout.

there are three ways for credit cards to make profits: one is the huge overdraft interest of credit cards. The Measures for the Administration of Bank Card Business stipulates that the overdraft of credit card will be compounded monthly, and the overdraft of quasi-credit card will be charged monthly with simple interest. The overdraft interest rate is five ten thousandths of the daily interest rate, so the annual interest rate is as high as 18.25%, far higher than the current ordinary loan interest rate; The second is the handling fee extracted from the special merchants. According to the regulations, commercial banks should charge no less than 2% of the transaction amount to hotels, restaurants, entertainment, tourism and other industries, and no less than 1% of the transaction amount to other industries; The third is the annual fee of the credit card. Different commercial banks charge different annual fees for holders of credit cards, ranging from tens of yuan to hundreds of yuan < P > It's simple to make money. The charge rate of credit card is higher than that of savings card, and many additional charging services can be derived from credit card, which is beneficial to banks.

Credit cards not only enable banks to attract customers who don't live near banks, but also provide new credit card users with excellent development opportunities for other financial products of banks. There are both new sources of income and new sources of deposits, and their attraction has triggered a high level of competition. As more and more merchants accept credit cards, it is more and more convenient for cardholders to use credit cards. On the contrary, with the increase of the number of cardholders, the opportunities for merchants to sell goods are also increasing. The mutual promotion of the two promotes the development of credit cards, and at the same time, banks also benefit from cardholders and merchants.

why do banks issue credit cards?

the income of credit card business mainly includes: interest income; Merchant commission; Punitive charges; Cash withdrawal charges; Annual fee; Cross-selling and other value-added income.

Why do banks issue small credit cards for 1 yuan credit cards?

Tips for daily use of credit cards and quick withdrawal

Frequent card swiping

In daily life, you'd better get into the habit of swiping your card whenever you can. On the one hand, you can enjoy an interest-free period in the bank and add a little extra wealth management income for yourself. On the other hand, you become an active user of the bank invisibly, usually the bank is an active user of the bank.

Continuous and stable consumption takes a long time

Generally, for credit cards with cardholders over one year and transactions occur every month, banks will take the initiative to raise the amount for these customers. If customers take the initiative to apply for permanent withdrawal, the chances of bank approval are relatively high.

Cardholders who withdraw cash frequently and often do credit card installment

For banks, the risk coefficient is very high, but at the same time, cardholders who withdraw cash also have the highest contribution to the bank; The risk of staging users is relatively low, but the contribution is not low. Therefore, for credit cards that mainly rely on interest and intermediary business as income-generating means, cash withdrawal and installment users are the favorite of banks, and the relative success rate will be high when applying for credit line withdrawal.

High consumption

Irregular large consumption, which can be repaid normally afterwards. This part of cardholders is usually defined as high-quality customers. After judging whether the cardholder has a large amount of demand, the credit limit will be increased as appropriate.

Why do banks issue credit cards

Because there is demand in the market, the counter processing procedures are as follows:

1. Go to the bank outlet where the credit card is processed, or find the staff of the credit card center of the local bank to fill out the credit card application form. The contents of the application form generally include the name, basic information, economic status or income source, guarantor and its basic information of the applicant;

2. Submit certain photocopies of certificates and certificates to the issuing bank;

3. After the contents of the application form are truthfully filled in, relevant credit certificates should be submitted at the same time as the completed application form;

4. The application forms are accompanied by a credit card use contract, and the applicant authorizes the issuing bank or relevant departments to investigate the relevant information, and submit a declaration of the authenticity of the information, the issuing bank's privacy protection policy, etc., and must have his own signature;

5. the credit card processing process is basically completed, and it is waiting for the credit card to be issued.

why can banks issue credit cards?

For banks, only one credit card center and supporting business processes are needed to increase the credit card business, and the cost of this part is relatively small, and each bank has its own risk control system. It is not uncommon for credit cards to fail to repay or even be in arrears for a long time, but it has not produced a lot of bad debts, and the interest of credit card business itself is very high, which can accept a higher bad debt rate than ordinary loan business;

2. The main source of income for banks is the spread between deposits and loans. However, banks are restricted by loan-to-deposit ratio, and they need to pay the cost of deposits first.

The introduction of why banks like to use credit cards and why banks like to use credit cards for repayment ends here. Did you find the information you need?