A credit card is a credit certificate issued by a card issuer to consumers with qualified credit. Consumers who hold a credit card can overdraw their purchases within the specified limit. A bank loan means a bank lends a certain amount of money to qualified applicants, and the borrower needs to pay interest. The main differences between the two are:

Credit cards have interest-free periods. Different card issuers have different regulations. The longest is about 56 days. As long as the credit card holder pays off the overdraft in time before the repayment date, The bank will not charge interest on the loan. Of course, if you cannot pay it off, you will need to pay corresponding interest, and this interest rate is relatively high. On average, the interest rate of most card issuers is above 8% annually, which can be said to be relatively high.

Bank loans require interest payment regardless of cycle and purpose. Relatively speaking, the floating range of interest rates is also relatively large. For example, the interest rates of housing provident fund loans and daily consumption loans are very different. But generally speaking, the interest rates for bank loans are much lower than the interest rates for credit card installment payments.

Credit cards are mainly used to evaluate personal credit. After you obtain a credit card through one-time review, you can keep it and use it as long as you use it within the validity period of the credit card. If your credit record is good, it can continue to improve. Quota. Bank loans are one-time. Once approved, the cycle ends until the final repayment is completed. If you want to apply for a new loan, you need to go through the process again, but whether the new application can be approved is very uncertain. Big. If the bank's own quota is tight or industry policies are tightened, the applicant may not be approved.

Most people’s credit card credit limits remain unchanged within a relatively stable period of time. Card issuers usually grant some temporary limits during peak consumption periods such as holidays, but then cancel them. However, the flexibility of bank loans is much greater. It has a lot to do with the applicant's loan purpose, that is, the collateral, guarantor, and occupational conditions. For example, the amount of a home loan is usually much larger. Using a house as a mortgage loan is better than using an ordinary mobility scooter. The amount that can be borrowed as collateral will be much larger.

In fact, there are many differences between the two, which will not be stated one by one here.

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Hello everyone! I have worked in a bank for a long time and am involved in both credit cards and bank loans. I summarized the following 6 differences between credit cards and bank loans:

In the past, whether we went to supermarkets, shopping malls, restaurants, or movie theaters, we would often take out a credit card and swipe the card when checking out. Pay. Nowadays, mobile payment is very popular and physical cards are used less often, but most people have more than one credit card tied to their Alipay and WeChat Pay. Like a debit card, a credit card is a payment tool that can be used very conveniently to pay for various daily expenses.

Bank loans are not payment tools. When people use bank loans, they often put the loan into a debit card and then pay with the debit card.

Furthermore, since credit cards are payment tools, credit cards, like debit cards, not only have bank card numbers generated according to unified rules, but can also set transaction passwords. In addition to digital credit cards, most regular credit cards have a physical medium, which is a card. Card number, password, and media are three things that are not available in bank loans.

Not only that, because credit cards are payment tools, they have derived a series of payment methods such as card discounts, co-branded cards, and consumption points, which are also not found in bank loans.

Just like the word "credit" in a credit card, credit cards are basically purely credit-based. Although the "Regulations on the Supervision and Administration of Credit Card Business of Commercial Banks" stipulates that when necessary, the card-issuing bank can require the cardholder to implement a second source of repayment or provide a guarantee, but in practice, this situation is relatively rare.

Bank loans are different. Bank loans have various guarantees such as mortgages, pledges, and guarantees. The home loan that everyone often talks about is a kind of mortgage loan. The borrower mortgages the house to the bank, and the bank will issue the loan with peace of mind. In addition, pledges of deposit certificates and bank property management loans are common pledge loans.

Also, for example, my colleague and I apply for a loan at the bank, and the two of us guarantee each other. This is a guaranteed loan.

Credit cards originated from credit accounts, that is, accounts are first recorded after consumption, and the accounts are settled after a period of time. Therefore, in the credit card business, bills are very important.

Around the settlement of bills, concepts such as interest-free repayment period and minimum repayment amount have emerged. Everyone should know that only by settling the bill in full before the due payment date can you enjoy the interest-free repayment period. As long as the repayment amount is greater than the minimum repayment amount before the due repayment date, it is not considered overdue, and the unpaid principal and the resulting interest will be calculated into the next bill, and the cycle repeats.

Bank loans are not so complicated. After the loan is successful, the bank will provide a repayment plan, and the borrower only needs to repay the loan in full and on time. Although some banks now engage in some interest-free activities in order to expand the scale of loans, there is no fixed mechanism such as interest-free repayment period and minimum repayment amount for bank loans.

According to the regulations of the People's Bank of China, the upper limit of credit card overdraft interest rate is RMB 50,000 per day, and the lower limit is RMB 3.5 per day, which is very clear.

There are no clear upper and lower limits for bank loans. As for the upper limit of bank loan interest rates, most in the industry think it is 24%, but some people think it is 36%, and the regulatory authorities have not issued a clear document. With the continuous advancement of marketization of loan interest rates and the existence of some interest discount policies, there is no clear lower limit for bank loans.

Credit cards not only have interest, but also annual fees, cash withdrawal fees and other fees. These two fees are not found in bank loans.

Many banks support the application of supplementary credit cards, but bank loans do not have similar functions.

The above are the 6 differences between credit cards and bank loans that I have summarized. After reading this, you will find that there is a big difference between credit cards and bank loans. Among them, I think the biggest difference between the two is that a credit card is not only a lending tool, but also a payment tool. Payment is the core function of a credit card; while a bank loan is just a loan, not a payment tool.

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Hello, I am Monopoly. Regarding your question, my suggestions are as follows:

First of all, bank loans and credit cards both apply for a certain amount of funds from the bank for turnover or consumption, but the interest rates for both are different. There is a big difference. Failure to repay in time may also have a certain impact on our personal credit report, thereby affecting our daily life.

So what is a credit card? What process does it take to get a bank loan? !

A credit card is a card issued by a bank. The collateral is personal credit, and the obtained is a virtual number, which is an overdraft consumption; while a loan requires the use of physical objects such as cars and houses. Or stocks, bonds and other valid value certificates are pledged as collateral, and the money obtained is cash.

The differences between credit cards and bank loans are mainly reflected in the following seven aspects:

1. Different application materials

Credit card application: Provide proof of work unit and income;

Loan application: Work unit, income certificate, bank statements, real estate, vehicles and other physical objects or stocks, valid certificates of bonds as collateral.

2. Different borrowing methods

Credit card lending is mainly based on credit evaluation, with the characteristics of continuous evaluation and continuous issuance;

Bank loans are based on the review results. Accurate, apply once and issue once.

3. Different borrowing limits

Credit card borrowing limits are low, usually less than 10,000, suitable for short-term small consumption;

Loan borrowing limits are common It is relatively high and is mostly used for large expenditures on house purchase and investment.

4. Different borrowing periods

Credit card repayment period is short, interest is high, and the longest repayment period is 24 months. The financial pressure of the repayer is relatively high, and the longest repayment period is relatively high. The term is 24 months;

The repayment cycle of bank loans is relatively long, and the interest rate is generally low. It can be repaid in 5 years, which reduces the financial pressure of the repayer to a certain extent.

5. Different purposes of borrowing

Credit cards do not need to indicate the purpose of the loan;

Bank loans must indicate the purpose of the loan, and you will be held responsible or even punished for breach of contract.

6. Loan costs vary

Credit card interest-free period is set, with a maximum period of 56 days. It is stipulated that no interest will be charged if the loan is returned within the interest-free period, but the interest cost will be very high if it is overdue;

There is no interest-free period for bank loans, and interest needs to be paid from the time the loan is borrowed until the repayment period expires. As the repayment principal decreases, the interest calculation base will also decrease accordingly.

7. Different methods of early repayment

Credit card repayment methods are relatively fixed, one-time charge, non-refundable, and early repayment is meaningless;

There are many loan repayment methods, including repaying interest first and repaying the principal in one lump sum upon maturity, as well as repaying a mixture of principal and interest. Early repayment is allowed on the premise of charging partial penalty for early repayment.

Therefore, the characteristic of credit cards is that they can obtain funds quickly, but the amount of funds is relatively small, which is suitable for making up for the lack of daily consumption; bank loans have large amounts of funds and low interest rates, which are convenient for large-scale purchases such as house purchases and investments. expenditure requirements.

The above is my answer. I hope it can help you, thank you!

1. Difference in nature

Credit card, also a credit card, is a credit certificate issued by a commercial bank or credit card company to consumers with qualified credit.

Bank loan is an economic behavior in which a bank lends funds to those in need of funds at a certain interest rate according to national policies and agrees to return it within a time limit.

2. Differences in application conditions

Applicants for credit cards are divided into units and individuals. Applicants should be institutions, enterprises and business units, foreign-funded enterprises and individual industrial and commercial households with independent legal person status in my country. Each unit applying for a credit card can receive a main card and multiple supplementary cards as needed. To apply for a credit card, an individual must have a fixed occupation and a stable source of income, and provide a guarantee to the bank.

The required conditions for borrowers of bank loans are natural persons aged 18-60 years old (Hong Kong, Macao, Taiwan, Mainland China and foreign nationals are also acceptable); have a stable career, stable income, and the ability to repay the principal and interest of the loan on time; borrow money The person's actual age plus the loan application period should not exceed 70 years.

3. Differences in types

Credit cards can be divided into bank cards and non-bank cards according to different card issuers. For credit cards issued by banks, cardholders can shop and consume at the card-issuing bank's special merchants, and can also withdraw cash at any time at all branches of the card-issuing bank or places with ATMs; non-bank cards can be specifically divided into retail credit cards and travel credit cards. entertainment cards.

Bank loans are divided into short-term loans, medium-term loans and long-term loans according to different repayment periods; according to different repayment methods, they are divided into demand loans, term loans and overdrafts; according to different loan purposes or objects, they are divided into industrial and commercial loans Loans, agricultural loans, consumer loans, securities broker loans; according to different loan amounts, they are divided into wholesale loans and retail loans.

The difference between bank loan and credit card is:

1. Different scope of use:

Credit card is an overdraft consumption card, and the cardholder can use the credit limit to swipe the card Consumption. There are many types of loans and their uses are wider than credit cards. They can be used to buy cars, houses, etc.

2. Different interest-free periods:

Bank loans generally do not have an interest-free period, and credit cards generally have a longer interest-free period.

3. Different repayment methods:

There are relatively few repayment methods for bank loans, and installment repayment and early repayment are supported.

For credit card repayments, you can generally apply for early repayment, on-time repayment, installment repayment, minimum repayment, etc.

There is a difference. A credit card is a separate card issued to you by the bank. It is used for swiping purchases. There are various types of credit cards. Different types of cards enjoy different benefits. Some of them are for watching movies. Discounts, gas discounts, etc. After each month's consumption, it will be paid off in the next month's cycle. Similar to Alipay's Huabei, there is no interest, but if it is overdue, it will enter the personal credit system. If you use the credit card frequently, the bank will If the situation sets you as a user with high credit, your credit limit will also be increased.

As for a loan, you take the initiative to apply for it from the bank. There are many types of loans, such as housing loans, consumer loans, mortgage loans, etc. The interest rates of different loans are also different, and the loan amount will be determined by the bank from various aspects. The lender makes an evaluation and decides whether to lend you a loan and the loan amount.

Finally, protect your credibility! ! Don't be late...

There is a big difference between a credit card and a loan.

Credit cards are for independent consumption. When cash is needed, you can withdraw part of the cash for emergencies.

To apply for a loan, you need to go to a bank. The bank will evaluate your flow, credit, and repayment ability before granting you a loan. It’s also possible that they won’t lend you money.

Of course, it’s similar to “routine loans”, so I won’t talk about that. There is no lower limit.

Nowadays, the use of credit cards is very common. I have seen a set of data released by Rong360. It seems that there is probably one credit card every two years on average. Considering that the elderly use less credit cards and children do not apply for credit cards, the average number of credit cards held by young people is estimated to be higher. high. I often hear feedback from online friends that they have more than a dozen credit cards on hand. As a medium for credit consumption, the essence of credit cards is to borrow money from the bank and repay it later. So compared with traditional bank deposits, what are the differences and similarities between credit cards and bank loans?

1. The methods of lending funds are different. A bank loan is usually a one-time loan, whereas a credit card is a loan as you go. For example, if you apply for a consumer loan of RMB 50,000, after submitting all the information and passing the bank's approval, the funds will be transferred to your personal account at once to complete the loan. Although the purpose of the funds will be known during the review, it is actually difficult and impossible for the bank to clearly track where the money actually flows in the end, as long as it is paid back in the end. With a credit card, the bank only lends money when there are actual transactions and purchases. Within the total limit, each swipe counts.

2. The interest calculation methods are different. When applying for a bank loan, the interest rate and repayment method are agreed upon, and then the principal and interest are repaid according to the repayment plan. The most attractive thing about credit cards to users is that credit cards provide one month of interest-free account period. This month is equivalent to the bank providing free funds for cardholders to consume, and they only need to return it to the bank on the repayment date next month. . If you are unable to repay when due, you can extend the repayment period through bill installments, and interest will only accrue at this time. Comparatively speaking, the interest rate of credit card installment is higher than that of ordinary bank consumer loans. The annual interest rate of the former may exceed 10%, while the annual interest rate of the latter should be around 5%.

3. Credit cards and bank loans are two completely different types of financial services provided by banks. For bank loans, the profit model of bank loans is the interest difference. Credit cards are completely different. If credit card users do not pay in installments, it will incur additional capital costs for the bank. However, through credit cards, there are other business transfers between banks and cardholders, and various services based on credit cards It is a link that can cooperate with online and offline merchants to provide financial services. It can also target high-end users and become a private wealth management bank. This is an additional source of income for banks after they have a group of credit card users, and it is also the core of the credit card profit model.

Or you can joke that the credit card holder and the bank are married, while the bank loan is just a short-term love affair.

The differences between bank loans and credit card installments are as follows:

1. Bank loan: It is just a lending relationship with the borrowing bank.

2. Credit card installment loan: It also has a lending relationship with the borrowing bank, but it relies on the installment loan of the credit card.