What is a credit card?
A credit card is a special carrier card issued by commercial banks to individuals and organizations. They can shop, consume, and deposit and withdraw cash from the bank. They are special carrier cards with consumer credit. It takes the form of a card with the name of the issuing bank, validity period, number, cardholder name and other contents printed on the front, and a magnetic stripe and signature strip on the back. Credit cards are divided into two categories: credit cards and quasi-credit cards based on whether a reserve fund is deposited with the card-issuing bank. A credit card is a certain credit limit given by the card-issuing bank to the cardholder. The cardholder can spend within the credit limit first and then Credit card repayment. A quasi-credit card is a credit card that requires a certain amount of reserve deposit to be deposited first as required by the card-issuing bank. What we call credit cards now generally refers to credit cards only.
The most popular way to put it is: when your shopping needs exceed your ability to pay, you can borrow money from the bank. A credit card is a certificate that the bank agrees to lend you money based on your integrity. The credit card will tell you how much you can borrow from the bank and when you will pay it back. The credit card will also record your personal information and consumption details in order to provide you with comprehensive financial services.
In appearance, a credit card is about the size of a second-generation ID card. It is generally made of special plastic, with a specially designed pattern, the name and logo of the card issuer printed on the front, and embossed or flat characters. The card number, name of the holder, expiration date and other information printed in the form; on the back of the card, there is a magnetic strip used to record relevant information, a signature strip for the cardholder to sign, and instructions from the card issuer.
Credit cards are divided into: corporate cards and personal cards according to the objects of use; divided into: platinum cards, gold cards and ordinary cards according to the credit rating; divided into: RMB cards, international cards or both according to the currency. A dual-currency card with multiple functions. For personal cards, the bank generally determines the overdraft amount based on the applicant's job nature and income level after verification. Of course, the amount approved by each bank is different under the same conditions.
Credit cards have the following features:
You can make overdraft purchases without depositing, and you can enjoy an interest-free period of 20-50 days. Repay on time with no interest charges. (If it cannot be paid off in one go, the monthly repayment amount must be about 10% of the outstanding amount, with interest recurring.)
Swiping your card when shopping is not only safe and convenient, but also provides points as gifts. (If the business nature of the merchant is "wholesale", consumers who use credit cards will not earn points.)
You can enjoy discounts when using your card at the bank's designated merchants.
Accumulate personal credit and add a record of integrity to your credit file that will benefit you throughout your life.
It is accessible nationwide and you can withdraw money or make purchases by credit card at ATMs and POS machines with the UnionPay logo.
Generally, banks will mail statements for free every month or notify you of the consumption amount and minimum repayment amount by email.
Some banks have launched additional card functions unique to some credit cards, which can bring different conveniences and benefits.
The free choice of one card and dual currencies is available all over the world. Overseas consumption can be repaid in domestic RMB.
Comparison of Domestic Bank Credit Cards
My friends have used many credit cards, including: China Merchants Bank, China Construction Bank, Guangdong Development Bank, CITIC Bank, Minsheng Bank, Industrial Bank, Shanghai Credit cards issued by Pudong Development Bank and Bank of China. Among them, we recommend China Merchants Bank, China Construction Bank, China Guangdong Development Bank and China Minsheng Bank.
The disadvantage of Industrial Bank is that it has few business outlets, which brings great inconvenience to repayment. At the same time, among several banks, for the same qualifications, Industrial Bank’s approved quota is basically the lowest, which will greatly affect shopping, points and capital turnover.
Shanghai Pudong Development Bank is my least favorite bank. But objectively speaking, this bank's business in Shanghai is still relatively good. Looking at Beijing alone, it has very few business outlets and the quality of its service staff needs to be improved. This bank's credit card business generally does not support students. It is worth mentioning that Shanghai Pudong Development Bank’s service of redeeming points for gifts is quite prominent among these banks. For example: when you apply for a card, you will receive a folding bicycle; if you spend 3,000 yuan within three months, you will receive a set of Auxi Nu spring and autumn quilts, pillows, and four-piece sets. These are all activities I have experienced.
CITIC Bank will basically approve a gold card to applicants with an annual income of more than 70,000 yuan. However, the gold card limit will be adjusted based on the applicant’s real estate, car ownership and other conditions. It is basically 10,000 yuan. Between 15,000 and 15,000. The characteristics of this bank are not distinct.
As a state-owned bank, Bank of China is relatively cautious in terms of credit card issuance and quota. This bank has begun to serve students in recent years, but the limit is not high, usually around 1,000 to 3,000. I do not recommend it. However, Bank of China and many universities jointly launch alumni cards, which may bring convenience in some specific aspects.
My friend has applied for a Bank of Communications credit card. This earliest commercial bank in China has its own unique advantages. The cover of the Bank of Communications credit card is the most beautiful I have ever seen. To some extent, it breaks through the inherent pattern of Chinese bank card design. However, the efficiency and accuracy of this bank's work cannot be complimented. I think my friend was not the only one whose credit card application failed due to a mistake on the part of their staff.
If it is only used for ordinary consumption, China Construction Bank Credit Card is recommended. First of all, the amount approved by it is appropriate and will generally not affect consumption; moreover, as a large state-owned bank, it has many business outlets and makes repayment convenient. Some merchants in Beijing, such as New World Shopping Mall, conduct night rush sales during specific festivals. At this time, other commercial banks' bank cards (including credit cards and debit cards) may fail to swipe their cards. China Construction Bank often can Showing the advantages of large state-owned banks. Moreover, what attracts me the most is that China Construction Bank will occasionally launch activities to redeem gifts with credit cards. As long as the consumption reaches the prescribed limit within a period of time, the gifts will be generous. I once got a LOCK gift box worth 500 yuan.
Of course, there is no problem if it is only used for ordinary consumption, such as China Merchants Bank, Minsheng Bank, and China Guangdong Development Bank.
The characteristic of Minsheng Bank is that its approved credit limit is higher than that of ordinary banks. For example, the approved quota for graduate students and above in various schools in Beijing is 6,000 yuan. China Construction Bank, China Guangdong Development Bank and China Merchants Bank have the qualifications to approve an overdraft line of 10,000 yuan, while the overdraft line of Minsheng Bank may be between 20,000 and 30,000 yuan. Minsheng Bank statement date and repayment date can be set by yourself. The prizes redeemed with points are also at an average level.
For users who often pay online, I only recommend China Merchants Bank credit cards. Users only need to enter their account management on the China Merchants Bank website and apply for online payment. Of course, the professional version of the credit card will be relatively troublesome. Moreover, China Merchants Bank’s online service is very good, and I haven’t had any problems after using it for several years. At the same time, its online payment range is very wide, and examination payment, Alipay, etc. can be easily solved. This is much more convenient than the complicated online payment procedures of Industrial and Commercial Bank of China.
The only disadvantage is that there is no password for credit card consumption. Many merchants do not bother to check the handwriting after the consumer signs. Once the card is lost and the card is not reported lost in time, there will be certain risks. Minsheng Bank, China Construction Bank, China CITIC Bank, Shanghai Pudong Development Bank and other banks have more comprehensive designs on this point.
Based on my experience and that of some friends, for convenience, comprehensiveness, and quick use, I suggest that everyone hold a Minsheng credit card at the same time (high limit, password, points advantage, flexible billing and repayment dates) , China Construction Bank Credit Card (with password, points, convenient repayment) and China Merchants Bank Credit Card (appropriate limit, online payment, convenient repayment). I believe that good results can be achieved by using this combination and interaction.
Two additional suggestions: First, there is no interest-free period for withdrawing cash on a credit card, so it is best not to withdraw cash on a credit card. Interest begins to be calculated on the day you withdraw cash, and the interest rate is relatively high. Secondly, in China, the visa card is more widely used than the master card. You need to understand the difference between the two before applying.
Disclaimer: The above is my experience and may not be completely accurate and comprehensive. Represents personal views only.
Let’s talk about credit cards again
The day before yesterday, this site invited netizens to write a brief talk about credit cards. After it was published, it attracted the attention of many netizens. This article goes on to talk about some basic concepts about credit cards to help everyone further understand credit cards. Unless otherwise specified, the credit card mentioned in this article still only refers to a credit card, that is, a bank card that can be used directly for consumption without requiring a pre-deposit or deposit.
Annual Fee
The annual fee for holding a credit card. Annual bank credit card fees vary, generally ranging from 50 to 200 yuan. Many credit cards now offer promotions that waive annual fees for the first year and waive annual fees for the following year if you swipe the card 3 to 6 times.
In addition, after applying for a credit card, even if it is not activated for use, an annual fee will still be charged. If you don’t want to pay the annual fee, please activate it in time and then cancel the card.
Credit limit
The credit limit refers to the maximum amount that can be used by a credit card, and it refers to a fixed limit for one year. The credit limit is based on a comprehensive assessment based on the information you filled in when applying for a credit card and the relevant supporting documents provided. The main card and supplementary card enjoy the same limit. China Merchants Bank Credit Card has "one card, two currencies", and the credit limit is RMB and USD*. For example, if your limit is RMB 30,000, when you use the card overseas, your credit limit is equivalent to approximately USD 4,000. The credit limit will be adjusted regularly by the bank, but you can proactively provide relevant proof of financial resources to request an adjustment of the credit limit.
In addition, when you need a higher limit within a certain period of time when traveling abroad, moving to a new home, etc., you can request to increase the temporary credit limit.
Available limit
Available limit refers to the credit limit of your credit card that has not been used. The calculation method is as follows:
Credit limit
(minus) The amount that has been debited that has not been paid off
(minus) The accumulated amount that has been used but not debited< /p>
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(equal to) available limit
For example: your credit limit is 20,000 yuan , the unpaid accounted amount is 10,000 yuan, and the used but unaccounted amount is 4,000 yuan, then your available limit at this time is 6,000 yuan.
Note: The available credit will decrease with each consumption and will be restored with each repayment.
Validity Period
Each credit card can only be used within its validity period. The validity period of a credit card is generally stated on the credit card. Credit cards that have expired will no longer be able to be used. When using credit online, you need to enter the credit card's expiration date for verification.
You can apply for a new card after your credit card expires. Applying for a new credit card will not destroy your previous credit history.
Verification code
The three digits on the back of your credit card. This three-digit number is used to verify the authenticity of the credit card. Please keep it confidential.
Billing Date and Repayment Date
The billing date is the fixed date when the bill is issued every month. The repayment date is the date every month when the consumption of the previous month is repaid. The billing date and repayment date of each credit card are different. Some banks also allow users to specify the billing date and repayment date by themselves.
There is generally about 20 days between the billing date and the repayment date.
Interest-free repayment period
For non-cash transactions, the period from the bank accounting date to the due repayment date is the interest-free repayment period. The minimum interest-free repayment period is 20 days and the maximum is 50 days. During this period, as long as you repay the current balance due on the current statement in full, you will not have to pay any interest on the funds advanced by the bank to the store for non-cash transactions (cash advances do not enjoy the interest-free discount).
Suppose that my monthly bill date is the 15th and the repayment date is the 5th of each month (the following month). So, if I purchase goods on the 14th, the bill will be issued on the 15th and the payment will be made on the 5th of the next month, enjoying a 20-day interest-free period. If I purchase goods on the 16th, the bill will be issued on the 15th of the following month and the payment will be made on the 5th of the following month, thus enjoying a 50-day interest-free period.
Minimum repayment amount
The minimum repayment amount refers to the minimum amount that needs to be repaid when using revolving credit. The minimum repayment amount is listed on the current bill.
The minimum repayment amount is calculated as follows:
10% of the consumption amount within the credit limit
(plus) 100% of the cash advance transaction amount
(plus ) 100% of the unpaid portion of the previous minimum repayment
(Add) 100% of the consumption exceeding the credit limit
(Add) 100% of fees and interest
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(Equal to) Minimum repayment amount
Revolving credit interest rate
The revolving credit interest rate is uniformly stipulated by the People's Bank of China, with a daily interest rate of 5/10,000 and compound interest calculated on a monthly basis.
Late payment fees (interest)
If your actual repayment amount is lower than the minimum repayment amount on the due payment date, you will be charged late payment fees for the unpaid portion of the minimum repayment amount. The proportion of late payment fees is uniformly stipulated by the People's Bank of China, which is 5% of the unpaid portion of the minimum repayment amount. The credit card center charges a minimum of RMB 10 for RMB accounts and USD 1 for USD accounts.
Co-branded cards
Cards associated with third parties - such as retailers or airlines - that provide rebates, discounts or discounts based on the amount of purchases made by users within a specific period of time. Other value-added services. For example, Air China Friendship Card, Ctrip Card, etc.
Withdrawal (Cash Withdrawal)
Withdraw cash from a credit card. Credit card services with Chinese characteristics. Generally speaking, credit cards are only used for purchases and cannot be used to withdraw cash. However, due to the unreasonable demands of some domestic users, some bank credit cards have now begun to provide cash withdrawal services, which increases the risk of users using credit cards.
Password
Credit card services with Chinese characteristics. That is, when consumers use their credit cards to make purchases, they must enter a preset password before they can use it. This service actually provides banks with an exemption clause, and the use of passwords is regarded as personal consumption. This service increases the risk for users to use credit cards.
The above summary is incomplete. If there are any omissions, please point them out ^-^