As for the credit card arbitrage behavior that has become more and more serious in recent years, the Shanghai headquarters of the central bank stated on July 26, 2010 that credit card arbitrage is illegal and should be strictly prohibited. After reviewing various information, the editor of IAika will introduce to you the following risks of cashing out credit cards:

1. Credit risk. Once the bank identifies it as a suspected malicious credit card cash-out investment, such bad records may affect the investor's future personal loan business such as home loans and car loans, which may lead to higher loan interest rates or even the inability to get a loan. In addition, banks will generally choose to moderately reduce the credit card limit when users use credit cards to cash out large sums of money or invest through other means.

2. Credit card repayment risks. Industry insiders said that platforms where credit cards can be used to recharge securities are not standardized. If there is a problem with either the platform or the borrower and the funds cannot be returned on time, and the speculator does not have enough funds to repay the credit card in time, then in addition to paying a certain amount In addition to late payment fees, you will no longer enjoy the interest-free repayment treatment. The bank will charge users overdraft interest from the accounting date. The higher the amount used to cash out on a credit card and the longer the overdue period, the greater the speculator's losses.

3. Legal risks. Cashing out on a credit card is illegal. According to relevant regulations, those who maliciously overdraft will be convicted and punished for credit card fraud.

Bankers said: Once cardholders are found to have arbitraged their money, their cards may be suspended. Not only will they have a bad credit record, but they may even be sentenced and bear criminal liability, which is not worth the loss.