As a financial instrument, credit cards have significant advantages and disadvantages. First of all, its convenience cannot be ignored. Unlike traditional savings cards, cardholders do not need to worry about insufficient cash. They can make daily purchases without deposits and only need to repay the consumption amount on time. Shopping with a card not only ensures transaction security, but also allows you to accumulate points to redeem gifts. At the same time, you can also enjoy additional discounts when shopping at merchants designated by the bank.

However, there is another side to credit cards that needs to be treated with caution. The allure of credit cards is that they can solve short-term financial difficulties, but they are essentially a means of making money for banks. Once it is overdue, high interest will follow, usually calculated at an interest rate of 0.05% per day, which may cause considerable pressure on the financial situation. In addition, the use of credit cards can easily make people fall into the trap of over-consumption, leading to irrational consumption behavior, reduced money management ability, and rapid consumption of property like running water.

What’s more serious is that overdue repayment will have a negative impact on a person’s credit record, which may lead to a decline in credit rating or even being blacklisted by the bank, which will have a negative impact on the person’s financial reputation and future credit applications. constitute an obstacle. Therefore, although credit cards provide many conveniences, they must be used wisely to avoid falling into debt crisis. Maintaining a good credit record is the key.