The function of the credit card is that the consumer who holds the credit card can go to the specialized commercial service department for shopping or spending, and then the bank will settle accounts with the merchants and cardholders, and the cardholders can overdraw within the prescribed limit.

The differences between credit cards and bank loans are as follows:

1, the essential difference

Credit card, also called credit card, is a credit certificate issued by commercial banks or credit card companies to eligible consumers.

Bank loan is an economic behavior that banks lend funds to people in need of funds at a certain interest rate according to national policies and return them within the agreed time limit.

2. Differences in application conditions

The object of applying for a credit card is divided into units and individuals. The applicant shall be an organ, enterprise, institution, foreign-invested enterprise and individual industrial and commercial household with independent legal personality in China. When applying for a credit card, each unit can get a main card and multiple supplementary cards as needed. Individuals applying for credit cards must have a fixed occupation and a stable source of income, and provide guarantees to banks.

The borrower of the bank loan is a natural person aged 18-60 (Hong Kong, Macao and Taiwan, Chinese mainland and foreigners are also allowed); Have the ability to stabilize employment and income and repay the principal and interest of loans on schedule; The actual age of the borrower plus the loan application period shall not exceed 70 years old.

3. Type differences

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 spend at the special merchants of the issuing bank, or withdraw cash at any time at the outlets of the issuing bank or places with ATMs; Non-bank cards can be divided into retail credit cards and travel and entertainment cards.

Bank loans are divided into short-term loans, medium-term loans and long-term loans according to different repayment periods; According to the different repayment methods, it can be divided into demand loans, term loans and overdrafts; According to the purpose or object of the loan, it is divided into industrial and commercial loans, agricultural loans, consumer loans and securities broker loans; According to the loan scale, it is divided into wholesale loans and retail loans.

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