Renovation loan repayments are transferred directly to the credit card. Renovation loans are generally credit card renovation installment business. After the loan is approved, the bank will issue a renovation installment card and transfer the money to the installment card. Cardholders who want to use funds can only use their credit cards to swipe their cards at the card swiping machines of designated decoration merchants, and cannot directly withdraw the money from their credit cards. In addition to receiving loan disbursements, decoration installment cards are also used for repayment. Even if the borrower does not use the money in the card, the bank will still deduct part of the principal from the card as a handling fee every month.

Renovation loan application:

First of all, applying for a renovation loan can be divided into two situations, one is a loan with provident fund, and the other is a loan without provident fund. Renovation loans can be applied for in both situations.

First, let’s talk about how to apply for a renovation loan if you have a provident fund.

1. Pay the city’s housing provident fund normally and continuously six months before applying for a loan.

2. Have full civil liability capacity, and have a permanent urban household registration or blue-printed household registration (non-agricultural) in this city.

3. Have stable economic income and the ability to repay the principal and interest of the loan.

4. The borrower must be the property owner of the major (decoration) house and sign a project implementation contract with a regular decoration company.

5. The spouse and direct blood relatives of the borrower can participate in the calculation of the provident fund loan amount as the housing provident fund *** and the borrower.

6. The collateral is a self-occupied house that the borrower has completed major (decoration) renovations and has full personal property rights. So you only need to meet the above conditions to apply.

If you don’t have a provident fund, there are several ways to apply for a decoration loan:

1. Pure credit decoration loan: As the name suggests, no mortgage or guarantee is required, only proof of identity and income are required. Proof of address and other materials, this type of loan is suitable for working people with stable income and good credit record.

Advantages: The optional amount is flexible, convenient and fast; Disadvantages: The interest rate is higher than that of mortgage loans, and the requirements for personal qualifications are high, so the amount is relatively low.

2. House mortgage renovation loan: Applicants are required to use the renovated house as a mortgage. Users need to provide ID cards, household registration books, real estate certificates and other documents, and use the house as a mortgage to get a renovation loan. Loan, up to 70% of the appraised value of the house.

Advantages: The interest rate is relatively low; Disadvantages: Some banks do not accept houses that are already under mortgage as collateral to apply for mortgage loans.

3. Credit card installment payment: It is a new decoration loan model that has emerged in recent years. Many banks promote related credit card business. The bank pays the merchants a one-time payment for decoration consumption, and then allows users to pay in installments. The process of repaying money to the bank. This type of loan is mainly targeted at people who live in large and medium-sized cities, have just purchased a new house, are short of money for renovations, and have a good credit record.

Advantages: Low entry threshold, no mortgage required; Disadvantages: There are restrictions on optional decoration companies, and the loan amount is low.