What is a credit card?

Credit card generally refers to credit card, which is a non-cash payment method and a simple credit service.

There are seven major functions, the functions are as follows:

1. Direct consumption function

This is the most basic function of a credit card. Cardholders can use the card instead of cash to settle payments at specially designated merchants marked with the Bank of China Great Wall Credit Card logo, including stores, hotels, restaurants, airports, hospitals and other places.

2. Transfer settlement function

Transfer settlement is the most important function of a credit card. After shopping in designated shopping malls and restaurants, credit card holders do not need to pay in cash, but only need to use credit cards for transfer settlement.

3. Savings function

The bank calculates the margin and reserve funds of the credit card account according to the prescribed interest rate, and treats them as savings deposits.

4. Microfinance function

Microcredit, first of all, is a credit loan, which does not require collateral. It mainly solves the financial service problems of low-end customers that traditional banks cannot serve.

5. Cash Withdrawal Function

From the perspective of providing customers with humanized services, various banks have opened the "Credit Card Cash Withdrawal" function. As long as it is not a large amount, you can directly withdraw money at the counter or ATM. You can take it away, very convenient.

6. Exchange settlement function

When a credit card holder travels or goes on a business trip and needs to collect money in other places, he can use the card to go through the deposit procedures at a non-local joint bank network institution. The bank will remit the money back to the local cardholder's account, and when using the money, you can use the card to handle withdrawal procedures at member banks in various places. You can also transfer the money to another place with the card, then pay with the card and handle the transfer settlement.

7. Installment payment function

Credit card installment payment means that when the cardholder uses a credit card to make large purchases, the card-issuing bank pays the merchant a one-time payment for the goods purchased by the cardholder ( or services), and according to the cardholder's application, the consumption funds will be deducted from the cardholder's credit card account in installments, and the cardholder will repay according to the monthly credit amount.

Compared with ordinary bank savings cards, the most convenient way to use credit cards is that they can be used for ordinary consumption without cash in the card. In many cases, you only need to return the consumed amount on schedule. The specific advantages and disadvantages are as follows:

Advantages:

1. You can overdraft consumption without deposit, and you can enjoy an interest-free period of 20-56 days to pay back on time without any interest charges. (Most banks will charge an interest of 50,000 cents on the day of cash withdrawal, as well as a handling fee of 20,000 yuan. ICBC does not charge a handling fee for cash withdrawal and only charges interest).

2. Swiping your card when shopping is not only safe and convenient, but also provides points for gifts.

3. You can enjoy discounts when using the card at the bank's designated merchants.

4. Accumulate personal credit and add integrity records to your credit file, which will benefit you throughout your life.

5. It is accessible nationwide and you can withdraw money or make purchases by credit card at ATMs and POS machines with the UnionPay logo; (Note: Credit cards are only suitable for consumption. It is best not to withdraw cash. The cash withdrawal fee is very high. Very uneconomical)

6. Spend by swiping your card, some credit cards can collect existing points, and there are various discounts and lottery activities throughout the year, so you can always be surprised as long as you use the card; (most credit cards do not have points for online payment, But online shopping and payment are very convenient and fast)

7. Free monthly mailing of statements, allowing you to transparently control every consumption expenditure (now promoting green environmental protection, paper statements can be canceled and changed to electronic statements) ).

8. The unique supplementary card function is suitable for couples to manage finances together or control their children’s financial expenditures.

9. The free choice of one card and dual currencies is available all over the world. Overseas consumption can be repaid in domestic RMB.

10, 400 or the 5-digit short number starting with 9 is available 24 hours a day. Loss reports are effective immediately and there is zero risk of losing the card.

11. Have validity period: It is known that domestic credit cards are generally valid for three or five years.

12. Use third-party platforms (the domestic platform that supports credit card bill management is mainly Jujindou) to conduct business cooperation and provide preferential services to cardholders.

Disadvantages:

The invention of credit cards is like a double-edged sword, which can solve the temporary economic crisis, but the purpose of banks issuing credit cards is to make money. Once the interest-free repayment limit is exceeded, time, a high amount of interest will be charged, usually five ten thousandths of interest per day.

1. Blind consumption

2. Excessive consumption

3. High interest rate

4. Annual fee required

5. Theft will occur

6. Personal credit record will be affected

7. Repayment troubles

8. Cancellation troubles

9. Although there is an interest-free period for credit cards, it is only for card consumption. There is no interest-free period for cashing out, and handling fees are also charged.

Extended information:

A credit card is a credit certificate issued by a commercial bank or credit card company to consumers with qualified credit. Consumers holding credit cards can shop or consume at specially designated commercial service departments, and then the bank will settle the accounts with merchants and cardholders. Cardholders can overdraft within the prescribed limit.