As the saying goes, you can't get up early without profit. There are credit advertisements and credit card advertisements all over the street, which only shows that these two items are very important to banks and can bring a lot of profits to them.

So how do banks make money with credit cards?

1. Interest income: The unpaid part of the credit card is generally 0.5 ‰ per day, that is, the annual interest rate is as high as 18%, which is much higher than the ordinary loan interest rate.

2, installment fee: If your credit card bill is installment, then the bank will charge a certain fee, even if the bill is paid off in advance, the bank's fee will be charged.

3. Credit card rebate income: customers use credit cards to buy things, and merchants need to pay a certain percentage of the transaction amount to the bank.

4. Withdraw income: Some people will withdraw cash by credit card. Then the bank will charge a certain withdrawal fee.

5. Annual fee income: At present, the competition in the credit card market is fierce, and ordinary credit cards are free of annual fees. However, some high-end cards still charge annual fees, ranging from hundreds, thousands to tens of thousands.

Needless to say, for credit, the high interest cost can make them earn a lot of money.

In addition, the competition between banks has become fierce, so it is good to have one more customer. Moreover, banks have performance appraisal for salesmen in this respect. So salespeople try their best to attract customers.

Therefore, in shopping malls, cinemas, subway stations and company gates, as long as you can think of places, you can see advertisements of credit companies, credit cards and salesmen.

Have you ever applied for a credit card or credit loan? If there is any pit in use, you can call me.

I'm chimooo, a financial manager. For more financial knowledge, please pay attention to my WeChat official account pipilulicaiji, and we will embark on the road of wealth freedom together.