Can I use a credit card to buy a house?

Before the Spring Festival, it is a good time for developers to promote sales, and there are endless discounts; for many house buyers, they also want to rush in early rather than late. mentality, hoping to complete the matter of buying a house before the year. But the down payment for buying a house is a big problem. Having to come up with a large amount of money at once is a lot of pressure for many young people. At this time, many people will think about whether they can use a credit card to buy a house?

Can I use a credit card to buy a house?

If the down payment for buying a house is not enough, it is a very common way to use a credit card to make overdrafts. However, usually the handling fee after applying for installment repayment will be relatively high. Most of them are people who really have no other way. An emergency method that will only be used in certain situations.

First of all, credit cards can be used to pay for a house, and there are no violations or violations; and paying with a credit card is simple and convenient, eliminating the trouble of applying for a loan from a bank or borrowing money from other people and institutions.

Secondly, the credit card itself is a credit fund granted by the bank. The so-called "use it in vain", if you use the credit card to overdraft during the interest-free period, you can enjoy the zero-interest discount, which provides cardholders with A certain buffer period.

Except for a few banks that set card swiping limits for real estate consumption, most banks’ credit cards can be used to pay down payments, so you can use credit cards to pay down payments for buying a house. However, the interest rate is also surprisingly high, so please consider it carefully!

Can I pay in installments when buying a house?

Yes! However, even if it can be paid in installments, the repayment pressure is still very high. The interest rate is much better than the bank's benchmark expected annualized interest rate. If you swipe a credit card of 150,000 yuan in 12 installments, you will have to pay more than 10,000 yuan in interest per year. Moreover, the adjustment range of the temporary limit of each bank is different, but the down payment cannot be paid in installments and must be paid off in full in the current period!

Can I use a credit card to pay the down payment for the house?

It is possible to pay the down payment by swiping a credit card. There is a handling fee for credit card consumption, but this handling fee is usually borne by the merchant, but this is not the case in home purchase transactions. Developers take advantage of the home buyers' lack of funds and want to buy a house, and then require the handling fee to be borne by the home buyer. , home buyers who are eager to buy a house often accept this handling fee.

The down payment for a house is different from ordinary consumer goods. The amount is usually larger. Some people’s credit card limit is not high enough and it is difficult for one card to pay a large down payment, so they use multiple cards to make up for it. If the credit limit is insufficient and multiple credit cards are used for large purchases at the same merchant at the same time, it is easy for the bank to determine that there is arbitrage.

Cash-out itself is an illegal act. At worst, the bank will recover the funds and block the card, or at worst, the credit report will be included in the bad credit record. Some home buyers paid the down payment using multiple credit cards by increasing the temporary limit, hoping to reduce the repayment pressure through subsequent installment payments. However, real estate transactions cannot be made in installments and can only be paid off in one go.

Take China Merchants Bank as an example. It clearly states on its official website that “cash advance transactions, installment transactions, real estate transactions, RMB funds that have been applied for foreign exchange purchases, and other transactions designated by the Bank cannot be accepted. "Apply for bill installment". If you fail to repay in time on the repayment date, your personal credit record will be stained, and the gain outweighs the loss.

Extended information:

Risks in paying down payment with credit card

1. The refund process is cumbersome and the risks are difficult to control

Purchasing a house It is good that everything goes smoothly in the process, but not all problems can be completely controlled by oneself. Once uncontrollable factors occur and the contract relationship breaks down, refund issues will be involved.

Even if the developer agrees to refund, there are usually cumbersome procedures, and the specific refund time is difficult to control. The time required for the entire refund process is likely to have exceeded the interest-free period of the credit card. , then the home buyer needs to make the repayment on his own first. If there is a problem with the capital chain at this time, then there will be a situation where the payment cannot be made.

2. Potential repayment risks of high leverage

Using a credit card to solve the problem of temporary insufficient funds, I successfully paid the down payment for the house. Although the down payment problem was temporarily solved, But then you will have to face high repayment problems, not only the down payment, but also the bank commercial loan.

If the home buyer does not have sufficient funds on hand, it may be overdue in the process. The high leverage puts the home buyer under greater repayment pressure. If there is an emergency for himself or his family during the period, he needs money. , which is even worse.