The first reason: if more credit cards are issued, banks can make money.

Many people think that credit cards are free. Yes, they are completely free to handle, but you know what? Free is the most expensive, and credit card is a typical example.

If you don't want money, the bank will send you a credit card. In fact, the pit for making your money has already been buried. The first pit is the management fee. There is a management fee for credit cards. Although the amount is small, it accumulates over time. As for banks, there are so many credit cards, and each card has to charge a management fee, which is not a small expense every year. So the bank took the initiative to get a credit card.

There are also two pits: interest and handling fee. Once a credit card is used, these two expenses are hard to avoid. If you choose to repay by installments, the more money you spend, the higher the interest you need to repay. In fact, banks often make money by interest. And the handling fee will increase, so the bank is not worried about your credit card at all. What you are worried about is that you won't do it.

What are the advantages of getting a credit card? Why do bankers recommend it? You'll know after reading it

Especially for many young people, they are more willing to spend on spiritual entertainment. Many people become moonlight families just to improve the so-called sense of material experience, and even many people choose to spend in advance to meet the current needs. Bank card has become one of the best choices for many people, which has led to the rapid development of credit card business in China. Why are banks so keen on handling credit cards?

Why do banks always recommend handling and using credit cards?

1. The amount of credit cards issued is an assessment of employees' business, and credit cards also help banks grasp the consumption concept of young people. More and more young people enjoy the benefits brought by the convenience of using credit cards while enjoying the consumption in advance, so the customers and income of banks have also been improved, ensuring that they can occupy a certain market share.

2. Bank employees can also get a part of commission when implementing credit cards, so many people are very willing to promote credit cards to the public to get commissions and commissions.

3. Banks have certain requirements for the issuance of credit cards, and they will be punished if they fail to complete the task, so many banks are very concerned about the implementation of credit cards.

For some people who have the habit of spending in advance, credit cards are not harmful to themselves, so they are very willing to accept bank staff to promote credit cards.

How do banks make money through credit cards?

1. In fact, the profits behind the promotion of credit cards by banks are still extremely rich. First of all, there are loan interest and late fees. Many people will say, if I am not overdue, how can there be a so-called late fee?

In fact, we sometimes have the pressure of full repayment, so many people choose the minimum repayment amount. Although it is not overdue, the unpaid part will still generate interest, and the profit is very rich.

2. Many credit cards have annual fees. Some banks don't have an annual fee, but they will stipulate how much to spend each year or buy bank wealth management products, so banks will always make profits.

What are the advantages of applying for a credit card?

1. Before the popularization of mobile payment, many people had to carry a lot of cash when they went out, and their safety could not be guaranteed. Now the popularity of credit card POS machines can reduce the security risks and troubles brought by carrying a lot of cash.

2. Most credit cards have various consumption policies, and there are various preferential policies according to different usage scenarios, whether it is redemption of points for gifts, cash back in consumption abroad, free first class, etc. So many people can get a lot of free benefits.

Everyone uses credit cards, and a good consumption record can also improve our level, and we can get higher loans and lower interest. Many people are also loyal to credit card consumption.

Why are banks of all sizes actively promoting credit cards?

Reasons why banks of all sizes actively promote credit cards:

1, as stipulated by the bank, is linked to personal performance.

2. Credit cards can overdraw consumption, and enterprises will find banks to cooperate in promotion, thus increasing bank customers.

3, credit card overdraft cash withdrawal, both fees and interest, increase bank income.

It is very advantageous for banks to use credit cards, so they will always promote their credit cards. First of all, you should use a credit card, which is bound to deposit money, so that unused money becomes a bank's demand deposit, and deposit is the first important thing for banks. Demand deposit, in particular, is a low-cost deposit, which is more profitable to lend.

Extended data:

Banks can cooperate with merchants. You may often see that some merchants will give discounts when shopping with credit cards, which will make people happy to use credit cards and increase their turnover, which is beneficial to both sides.

If the bank charges a service fee in proportion to the increase in merchant turnover due to customers' use of credit cards, the charging standard shall be determined by both parties through consultation.

At present, the use of credit cards by banks is basically not free, and an annuity is charged every year. Generally, each card costs ten yuan a year.

Credit cards are used across banks, and there is a charge, which increases the income of banks. Banks must promote credit cards, because they can benefit from them, and of course, they are also conducive to facilitating users' consumption. If you want to handle it, you can consult the customer service staff.