The difference between credit cards and loans

1. Different carriers

Credit card loans rely on credit card platforms to carry out credit card installment or cash advance business. Credit loans, on the other hand, are loan funds issued based on full trust in the borrower's qualifications.

2. Different loan limits

It is difficult for many people to exceed the 20,000 yuan credit card limit. If they want to borrow money for travel, car purchase, or decoration, it seems to be a bit stretched. In contrast, the credit loan limit is usually around 10 times your monthly income. As long as your monthly income exceeds 2,000 yuan, the credit loan limit can easily exceed that of a credit card.

3. Loan periods are different

Generally speaking, credit card installments are mainly short-term, and the maximum period is only 24 periods, which is 2 years, while credit loans are laid out Running marathon-style long-distance running routes can last up to 5 years.

4. Different characteristics

Credit card consumption is a non-cash transaction payment method. There is no need to pay cash when consumption, and repayment will be made on the billing date (Billing Date). Credit card limits are relatively small and can only be used for consumption. If you withdraw cash, you will be charged interest and the repayment period is relatively short. Loans have relatively large amounts, long terms, and relative flexibility.

Reference materials:

Baidu Encyclopedia-Credit Loan

Baidu Encyclopedia-Credit Card What is the difference between credit card installment and consumer loan?

;? With the increase in loan methods and types of loans, many borrowers are in a dizzying situation. Many friends think that credit card installments and consumer loans are the same thing, but what I want to say is that credit card installments and consumer loans are definitely not the same thing. , they are very different from each other. So, what is the difference between credit card installment and consumer loans?

(1) Depending on the loan limit, the credit card installment limit ranges from several thousand to tens of thousands. The credit card installment limit is mainly the credit limit granted by the card issuer to the cardholder. The credit limit To put it simply, no matter how many credit cards the cardholder has from the bank, the total amount of overdraft that the cardholder can actually have is certain. Consumer loan amounts are relatively large, reaching hundreds of thousands or millions, and can meet the borrower's large capital needs.

(2) Credit card installment payment has different scope of use. As long as the cardholder is not malicious tx

and can repay on time, there are no excessive restrictions on consumption purposes, but it cannot be used To make investments, such as buying stocks, etc. Although consumer loans have a wide range of uses, they require dedicated funds. It should be noted that the funds applied for a loan cannot be used for stock trading, etc.

(3) The required payment fees are different. If the cardholder uses a credit card to make purchases, as long as the cardholder repays within the time specified by the card issuer, he can also enjoy certain interest-free discounts. If the cardholder uses a credit card installment plan, the cardholder needs to pay a handling fee for each installment. For consumer loans, the borrower needs to repay the loan on time every month, and the loan interest is calculated from the effective date of the loan. If the borrower fails to repay the loan overdue, he will need to pay a certain amount of liquidated damages, and his credit record will be affected. What is the difference between credit card installment and small loan?

;? Nowadays, it is no longer surprising for everyone to have a credit card. The advance consumption model of credit card installment payment is also accepted by everyone. Many friends think that credit card installment payment Payment seems to be of the same nature as a small loan, so I have to say NO to this. So what is the difference between credit card installments and small loans?

(1) Different loan limits. The credit card installment limit is mainly the credit limit granted by the issuing card to the cardholder. Generally speaking, the credit card installment limit ranges from several thousand to tens of thousands. Small loan amounts range from more than 1,000 yuan to 200,000 yuan. The loan amount is mainly determined based on the borrower's personal qualifications.

(2) Different loan usage periods. The maximum usage period for credit card installment payments is only two years. Bank small loan terms can last up to three years.

(3) Credit card installments have different scopes of loan use. As long as the cardholder is not malicious tx

, there are no excessive restrictions on consumption purposes. However, it should be noted that credit card installments are It cannot be used for investment. Bank small loans are mainly business loans focused on individuals or families.

(4) The expected annualized interest rates of loans are different. Credit card installment payment cardholders can enjoy certain interest-free discounts if they repay within the time specified by the card issuer. But if it is a credit card installment, the cardholder needs to pay a handling fee for each installment. If the cardholder withdraws cash using a credit card, the bank will calculate interest on a daily basis and charge a certain amount of cash withdrawal fees. After the borrower successfully obtains a small loan, he or she enters the interest calculation mode, and the expected annualized interest rate will generally rise above the loan's benchmark expected annualized interest rate. As a reminder, whether it is a credit card installment payment or a small bank loan, borrowers need to repay on time to avoid overdue payments and a bad credit record, which will affect their future loan applications. What is the difference between buying a car with a loan and buying a car with a credit card in installments? Is it the same thing?

Buying a car with a loan is different from buying a car with a credit card in installments.

1. Buy a car with a loan.

1. Low loan interest rates: Taking China Construction Bank as an example, its latest car loan interest rates in 2016, the total interest rates for 1-year, 2-year and 3-year terms are 4%, 8%, 12 %. If you want to buy a car worth 200,000 yuan, you need to pay 100,000 yuan down, and pay off the remaining 100,000 yuan in two years. In the end, the consumer actually pays 208,000 yuan.

2. The threshold is high, the procedures are complicated, and the loan time is long.

When car buyers apply for car consumer loans, banks often require car buyers to provide a series of supporting documents: ID card, employment certificate, bank statements for the past year, social security certificate for more than two years (inclusive), Real estate certificate or house sales contract or house purchase invoice, etc.; third-party guarantees and pledges are also required.

3. Car loans will take up credit lines, and now the credit lines approved by banks are relatively limited. Even the previously popular home loans have been reduced by many banks; on the other hand, the procedures for traditional car loan business It is relatively complicated, and at the same time, the interest rate is relatively high and not very attractive.

2. Buy a car in installments with a credit card.

1. The application threshold is low.

As long as the car buyer has a credit card that can apply for a car loan, the credit card application procedure is relatively simple, and there is no need to provide corresponding property guarantees, eliminating the need for tedious procedures such as intermediary notarization and additional Costs place an increased burden on consumers.

Different automobile 4S stores need to submit different materials. For example, a 4S store said: "It requires nearly half a year's salary statement, mobile banking, and filling in some relevant forms." Another 4S store said that it only needs to provide salary statements and social security cards. If it is a civil servant, state-owned enterprise, For the customer groups of public institutions, loan approval efficiency will be relatively high.

2. Convenient repayment and interest-free. Just pay with the designated credit card.

3. The car models and limits are limited, there are handling fees, and you need to purchase designated car insurance.

Each bank credit card generally has cooperative car brands, so the choice of models is limited. In addition, the credit card for installment car purchase business has a limit, which depends on the credit qualification approved by the bank.

Manufacturers’ monthly subsidies are also different, and the installment service rates for different models of the same brand are also different. Moreover, different 4S stores of the same car brand may have different credit card installment loan interest rates.

Although there is no interest for installment car purchases with credit cards, there are installment handling fees. The rates of each bank are different. Generally, the rate is between 3% and 5% for 12 installments (one year), and between 3% and 5% for 24 installments (two years). ) is mostly between 4% and 7%. Moreover, in order to ensure the safety of bank funds, car buyers must also purchase designated car insurance in accordance with regulations. When the insurance compensation amount is no more than 5,000 yuan (some banks can reach 10,000 yuan), bank authorization is not required in the event of an accident.

Extended information:

Be cautious about car loan traps.

Buying a car with a loan is nothing new. This "enjoy now, pay later" method is very common in the entire automobile market. Many banks have cooperated with various brand car 4S stores and launched "zero interest rate" car purchase services from time to time.

Zero-interest loans, agency insurance and license plates... these may seem like good deals, but in fact, they often come with more conditions and fees than the actual car purchase and loan.

There are currently two main preferential ways to purchase cars by installment with credit cards: First, banks cooperate with car dealers to provide "zero interest and zero handling fees" car purchase discounts for some models. Compared with purchasing a car in full, the consumption is The buyer does not need to pay any extra cost; secondly, for certain car models, consumers need to pay a certain installment fee when purchasing a car with "zero interest and low handling fee".

“Interest-free” does not mean “free”. The interest on “zero-interest loans” is borne by the automobile manufacturers or dealers themselves. On the surface, it seems that consumers are getting discounts. However, if you do a careful calculation, you will often find that , the so-called interest-free is not free, and the cost will ultimately be passed on to consumers.

For example, in bank credit card installment loans, although there is no interest in the monthly payment, consumers are required to pay a handling fee when handling the installment business. But this handling fee is very mysterious. It not only includes the interest on the car loan, but also the profit of the dealer's mortgage business.

Moreover, when consumers participate in the "interest-free" activity, most of the models they purchase can only pay according to the manufacturer's guide price, and they can no longer enjoy the preferential prices of new cars. The interest-free amount of some models may even be higher than The discount on car prices is even less.

In car loans, we often encounter the problem of forced sales of car insurance. He also said that one should pay attention to whether there are "overlord clauses" in the contract, especially whether the payment method and warranty period are in line with industry practices.

Reference materials: People's Daily Online - Traditional bank car loans are gradually fading away, credit card installments are more tricky

Reference materials: People's Daily - Credit card installment payments are becoming more popular (reporter's observation)