China Banking and Insurance Regulatory Commission today (September 22nd) issued a warning to prevent the risk of lending credit cards. Credit card, as a convenient and fast micro-finance payment tool, is favored by financial consumers, but at the same time, some cardholders also have some improper or misunderstandings in the process of managing and using credit cards. China Banking and Insurance Regulatory Commission reminded the majority of credit card holders not to rent, lend or give their credit cards to others for safekeeping, so as not to cause losses to themselves and their families.

There are three main risks brought by credit card lending:

Risk 1: The cardholder may rent or lend the credit card, which may lead to excessive consumption of the credit card and excessive overdraft of funds. The overdue credit card due to inability to repay will not only generate huge interest, compound interest and liquidated damages, but also damage the cardholder's personal credit information, affect the cardholder's application for loans, and even trigger judicial proceedings. In addition, the cardholder's personal information is also at risk of leakage.

risk 2: the cardholder lends his personal credit card. If the borrower improperly uses the credit card amount for non-consumption fields such as real estate, securities, funds, wealth management or pawn, mortgage, production and operation, it will bring the cardholder the risk of illegal use of the credit card, which will easily lead to the credit card being downgraded, restricted, stopped using, and even bear the liability for breach of contract such as fines and penalty interest.

risk 3: the cardholder renting or lending the credit card may be used by actual users or criminal gangs for illegal cash withdrawal, money laundering, transfer of fraudulent funds, telecommunication network fraud and other illegal acts, and the lessor and lender may also bear corresponding legal responsibilities.

China Banking and Insurance Regulatory Commission suggested that consumers should apply for credit cards according to their daily actual needs, such as their consumption habits and repayment ability, so as to avoid blindly and excessively applying for cards. When handling credit card related business, it should be handled through the bank's business outlets or official APP, online banking and other formal channels. It is necessary to cancel the long-term sleep card or useless cards in time, so as not to lose or generate annual fees, interests and liquidated damages due to negligence in management. At the same time, we should pay attention to the security of credit card holders, and don't easily disclose personal financial information of credit cards such as card number, password and verification elements to others, and beware of being deceived or illegally used by others. When personal information is found to be leaked or illegally infringed, you should contact the issuing bank or report to the public security organ as soon as possible. Cardholders should use credit cards scientifically and rationally according to their personal and family financial situation. At the same time, in daily use, we should fully understand the relevant provisions of credit card bill generation date, interest-bearing, interest-free repayment period, installment payment, etc., to avoid the adverse consequences caused by overdue repayment.