How to use credit card reserve fund
Credit card reserve fund is actually similar to credit card installment payment. It is different from credit card installment payment. The difference is that the reserve fund does not occupy the credit card's reserve fund. Quota. After application, the amount of the credit card reserve fund is transferred to the designated credit card, and the limit used by the credit card reserve fund is also included in the credit card bill. The limit is not included in the credit card limit, but the credit card bill is incorporated into the credit card bill. , so we only need to pay off the credit card.
Credit card reserve funds generally do not support active application. They require cardholders with good qualifications and good credit card records to be opened after receiving an invitation from the bank. And the names of different banks may be different. For example, the reserve fund of Guangfa Credit Card is called Caizhijin. Minsheng, Ping An, and Everbright Bank credit cards all have reserve funds.
1. What is a credit card reserve fund?
The reserve fund service is usually activated by banks inviting credit card customers. To put it simply, the reserve fund is when the bank gives you a part of the money beyond the limit for you to spend, and the bank earns some handling fees. Therefore, the invited customers are generally people with a certain ability to repay, and they can also be called banks. Quality customers.
2. How about the reserve fund service?
The good thing about the credit card reserve fund is that there will be an extra amount of credit, and the installment will not occupy the credit limit. But at the same time, it also has a bad side: if the credit card reserve fund is used improperly, the installment rate will be higher:
Let’s take the credit card reserve fund of China Guangfa Bank as an example. Borrow 6,000 and pay it back in six installments. , then each period: 100060000.0075=1045. If it can be repaid in full, it will be more favorable than using a credit card to overdraft cash withdrawals and charge handling fees and interest, because for a cash withdrawal of 6,000, the handling fee is 150, and then there is an interest of 0.05% per day. Calculated based on six months and 180 days, the interest will be 540. In addition, credit card reserve fund and credit card use are actually the same. If you want to repay the loan early during the installment period, you still have to pay the monthly handling fee according to the previous setting.
Finally, the reason why banks dare to issue reserve funds without providing collateral is because the penalty interest on credit card reserve funds is relatively high. If the payment is overdue, the interest will be doubled. .
How to use ICBC reserves
Bank reserves are funds prepared by banks to meet daily needs. Some of the reserves placed by commercial banks in the central bank cannot be used and are statutory The other part of reserves that is available is excess reserves. Commercial banks can also place their reserves in other banks.
The functions of bank reserves are as follows:
1. Currency control function: a means of controlling the total amount of currency.
2. Liquid asset management function: Provides the central bank with a source of reserve requirements, thereby compensating for the supply of liquid assets generated through spontaneous factors.
3. Revenue or tax function: a source of central bank revenue.
4. Buffer function: Helps stabilize overnight interest rates when current asset conditions change.
Can ICBC’s reserves be used?
Reliable.
The reserve fund can meet urgent needs. It can be divided into installments for you, and can be returned in 12, 24, or 36 installments, and then you can repay it on time every month.
1. Not everyone has a credit card reserve fund, and it has a time limit. Generally, the limit will be gone if it is not used for three months. You can consult the bank customer service for the specific time!
2. Most of the repayment methods for reserve funds are equal amounts of principal and interest (the four major banks and CITIC have interest before principal, and Everbright sometimes charges all handling fees at once when lending), that is, principal and interest. The handling fee is paid monthly, and the handling fee shows the average monthly interest, that is, no matter which installment it is, the monthly handling fee is the initial borrowing amount multiplied by the monthly handling rate! (The reserve fund rate will also be discounted from time to time)
3. When applying for the reserve fund lending method, you must specifically ask the bank's requirements. Is it a one-time payment to a savings card or does it need to be spent by swiping a card? Use form!
4. Once the reserve fund is successfully applied for and released, the handling fee will start to be calculated regardless of whether it is used. Early repayment generally charges 3% of the remaining principal as liquidated damages! Of course, there is no initial handling fee.
What does it mean that the personal limit is 4 million yuan in credit reserves?
Individuals can borrow 4 million yuan as credit card savings. Generally, banks invite credit card customers to activate reserve fund services. To put it simply, the reserve fund is the money that the bank gives you beyond the credit limit of your credit card for you to spend, and the bank earns some handling fees. Therefore, the invited customers are generally people with a certain repayment ability, which can also be called banks. of quality customers. For example, Ping An Bank's credit card reserve is an additional amount of credit card funds given to you by the bank in addition to your credit card. It is not a limit and cannot be withdrawn. It is used for credit card payments and can be returned to the bank in up to 24 months.
What does credit card reserve mean?
Consumption reserve refers to: in order to meet the consumption needs of bank card users, banks provide cardholders with a small sum of money through active invitations. consumption reserve fund.
Bank card users can spend this amount at will, but after the term expires, bank card users also need to repay this amount on schedule, so consumption reserves also refer to short-term loans from banks.
Consumption reserve funds require bank card users to apply independently.
Consumption reserve fund application conditions: The bank will regularly update target customers who are eligible to apply for "consumption reserve fund". Only target customers can apply for "consumption reserve fund" from Ping An Bank, but for "consumption reserve fund" The bank did not list specific criteria for the target customers of "finance".
That’s it for the introduction of how to use credit card reserves.