Benefits of credit cards

① The advance consumption method of credit cards is in line with everyone’s current consumption concept, and it just satisfies the mentality of spending first without spending any money. ;

②Credit cards are interest-free for up to 50 days, which means you can use 50 days of free funds without interest. This is one of the reasons why everyone wants to apply for a credit card. Don’t be in a hurry after spending on the credit card. Repayment, during the interest-free period, you can have enough time to collect enough funds to repay;

③ There are many credit card discounts and activities, especially credit cards such as theme cards or travel cards, various You can also save a lot of money with the preferential benefits. There are also various film and television credit cards. When you apply, you will be given a film and television membership, so those who like to follow dramas can also save a lot of money. Newly applied card types will have new users’ first swipe gifts, and there are also You can use points to exchange for various physical items;

④Credit cards are universal. Often when you go abroad or travel abroad, you will inevitably encounter situations such as queuing up to exchange local currency, but it is very convenient to have a credit card. , you can pay directly with a credit card;

⑤ The use of credit cards can accumulate personal credit. As long as you repay on time, you will accumulate personal credit, and you can get certain discounts and discounts when borrowing in the future. With a high limit, loan approval becomes easy;

⑥Some credit cards also provide free accident insurance, medical insurance, towing and car washing, enjoy the services of banks or airport VIP lounges, and can also redeem points Benefits such as range and gas changes.

Disadvantages of credit cards

① People who often use credit cards know that they will develop a dependence on credit cards, thinking that they can spend money in advance with a credit card and then pay it back. , resulting in irrational consumption, which leads to great financial pressure for repayment;

② Due to irrational consumption of credit cards, the repayment pressure increases, and may also cause overdue situations, affecting oneself personal credit, even apply for online loans when funds are difficult, and then use the loans to support the loans, the arrears will become more and more, and you may do some illegal things in order to repay the loans;

③ Credit cards will charge annual fees, and some platinum cards have annual fees of several thousand per year. Sometimes when applying for a credit card, you do not make any purchases, but you are charged an annual fee, which results in the annual fee not being repaid, resulting in overdue payment;

④Credit card interest is relatively high. If you cannot repay in full and use installment repayment or minimum repayment, a daily recurring interest rate of 0.5% will be charged. Otherwise, the handling fee will be a huge expense;

⑤Credit cards are easy to be stolen. Small-amount credit card purchases are free of charge. They can easily be used illegally when lost or stolen, causing unnecessary losses.

Benefits of credit card:

It saves you the trouble of carrying cash. Credit card consumption avoids the trouble of paying cash for consumption in the past, and there is no need to worry about the danger of carrying too much cash with you. Users can consume first and then repay, which is helpful when users have insufficient funds.

You can participate in various discounts and discounts. Many merchants have cooperated with banks. Consumers can enjoy discounts and other preferential activities when purchasing at merchants with their corresponding bank's credit card. Customers can save money and earn points at the same time. Why not? This is why many young people now like to swipe their credit cards when going out to spend money.

Consumption deduction points. When users use credit cards to make purchases, they can often earn points. Each bank has different points conversion standards. Please ask the corresponding bank for details. When a user's points reach a certain level, they can redeem gifts, including things and virtual items, in the points mall on the Credit Card Center website.

The credibility of personal banks has been improved. When we need loans in our lives, banks attach great importance to your creditworthiness. If your credit card creditworthiness has always been very good, it will be very helpful for loans.

Online consumption is convenient and fast. Many online shopping malls or Taobao stores have opened credit card payment methods, which caters to consumers' preference for using credit cards for consumption.

Although there are no points for online purchases with credit cards, many people like it for its convenient and fast payment method.

Financial investment. Generally, the interest-free period of a credit card is about 55 days, which means that consumers do not have to pay any interest to the bank during this period after swiping the card to make a purchase. During this period, some families will use the funds on hand as working capital investment in other businesses. A place where you can manage your finances rationally.

Additional preferential treatment. In addition to enjoying discounts, points and other discounts, some bank credit cards also offer additional services. For example, some bank credit cards allow you to enjoy free car wash services at designated places at fixed times every week, or some bank credit cards offer free insurance services. Isn’t it a good deal?

No regional usage restrictions. Credit cards can be used across the country, and some can even be used directly in foreign countries. Cards can be used to make purchases at any ATM or POS machine marked with the UnionPay logo.

Disadvantages of credit cards:

Irrational consumption. Precisely because credit cards are very convenient and fast to use, they don’t look like banknotes that are spent one by one and make you feel distressed. Some irrational consumers tend to consume blindly, spend money like water, and regret it when they finally repay.

The interest rate is high. Everyone knows that every bank's credit card has a repayment date. If the user fails to pay off the current balance before the final repayment date, he or she will need to pay interest and late fees to the bank.

Credit cards have annual fees. Every bank's credit card has an annual fee. Generally, banks will launch a campaign of "swiping the card 6 times within a year to waive the annual fee for the next year". This will encourage users in disguise to swipe the card, otherwise they will be charged the annual fee for the second year, which will increase the number of users. consumption.

Overdue repayment will affect your personal credit record. If the user fails to repay the loan after the due date, it will also affect the user's creditworthiness in the bank, which will have an impact and trouble on future loans.

The phenomenon of fraud. By default, credit cards are password-free for swiping purchases. Although many people will set a password when opening a card, there are many scammers and theft cases. Criminals use high-tech means to steal users' passwords and card numbers and spend money outside, causing a lot of trouble. trouble.

Using a credit card well will still be of great help to you. If you use it poorly, it will also cause certain troubles. It depends on how the cardholder uses it