Now almost every bank has launched a credit card to encourage young people to apply for a credit card. There will be different discounts for holding a credit card for consumption. It has also become the mainstream payment method for young people now. After paying by credit card this month, , just pay back all the consumption limit before the repayment date of the next month. The popularity of credit cards has gradually led to the situation of "using cards to maintain cards and using loans to repay loans." The China Banking and Insurance Regulatory Commission reminds cardholders not to use cards to maintain cards and use loans to repay loans. Let's take a look at the specific situation.
On June 30, 2020, amid some hot complaints and consumption misunderstandings based on credit cards, the China Banking and Insurance Regulatory Commission issued a risk reminder to remind consumers to use credit card functions reasonably and correctly and establish correct and scientific Consumption concepts, do not blindly follow rational consumption, and credit card overdrafts must be moderate.
The China Banking and Insurance Regulatory Commission also stated that the main function of credit cards is to meet people’s daily, high-frequency, and small-amount consumption needs. Some cardholders will overdraft their credit cards due to excessive consumption and bear large credit card debts. They eventually choose to "use cards to support cards and loans to support loans", which directly leads to doubling of repayment pressure. In addition, it was pointed out that cardholders use credit card borrowings to conduct non-consumption fields such as securities, funds, and financial management. When using a credit card, do not "use the card to maintain the card and use the loan to repay the loan."
To maintain a card with a card and repay a loan with a loan, it actually means using one credit card or withdrawing cash, and then using other credit cards to withdraw cash to repay the first one. Currently, the interest charged on credit card withdrawals is calculated on a daily basis. The daily interest rate is 50,000% of the amount of cash withdrawn. If you withdraw 10,000 yuan, you will have an interest of 5 yuan per day. This is very high. If you use your card to maintain your card and repay your loan with loans, you will eventually be unable to repay your credit card. , will also produce the following serious consequences.
1. Interest and penalty interest. Reasonable use of the credit card itself will not incur any fees. If you use a credit card to make installments or withdraw cash, interest will accrue. Penal interest and late payment fees will also be charged after the credit card expires. Cardholders' repayment pressure will double, and their lives will become more and more stressful.
2. It affects the credit report. We all know how important the credit report is to individuals. If the credit report is not good, it is almost impossible to borrow money from the bank later. In the future, housing loans and car loans will be rejected by the bank. Credit stains will also be kept for five years, and cannot be changed or deleted during the five-year period; being listed on the credit black list will also restrict taking high-speed rail, airplanes, etc.
3. When sued and sentenced, banks will sue users who owe a large amount, owe for more than three months, and are unwilling to repay after repeated collections. In serious cases, not only Fines and even jail time may apply.
Therefore, although using a card to maintain a card and using a loan to repay a loan can meet temporary needs, it is not a long-term solution and should not be used.