Why apply for a large credit card? What are the benefits of large-denomination credit cards?

I don’t know if you have noticed a strange phenomenon. The richer people are, the more they try to apply for large-denomination credit cards or apply for loans from banks. People who have no money refuse to apply for credit cards and loans. Many of the reasons for this situation are caused by different views on financial knowledge.

So, why do so many people favor large credit cards? What are the benefits of large credit cards? Let’s find out together below.

1. You can accumulate credit

By constantly using cards reasonably and accumulating personal credit, and accumulating credit, it will be easy to get a lot of funds from the bank for convenience. turnover. It is a very good financing channel for enterprises.

2. Funds are easy to turn around

When the loan expires and must be repaid on time, the cash flow in your hand will become less and less. If you have several credit cards, you can pay them back a little bit. Keep using it continuously, and the more you use it, the bigger it gets.

3. The interest rate is lower than that of loans

Compared with private loans, the interest rates of loans and credit cards are relatively low and can generally be controlled at 3-5%. Around 5 cents to 1 cent for private loans.

Summary: The key to credit cards and POS machines depends on how you use them. For those who maliciously cash out and do not have good capital flow, it is still recommended that you do not apply for a large credit card. If you can use your hands For people who have a reasonable combination of resources, large credit cards are still very useful.

What are the benefits of applying for a credit card? Why do bank staff recommend it? You will know after reading this

Especially for many young people, they are more willing to spend money on spiritual entertainment. Many people become moonlighters just to improve the so-called material experience. There are even many People choose to consume ahead of schedule to meet their current needs. Bank cards have become one of the best choices for many people, which has led to the rapid development of my country's credit card business. Why are banks so keen on applying for credit cards?

Why banks always recommend applying for and using credit cards

1. The number of credit cards issued is a business assessment for employees, and credit cards are also helpful for banks to understand the consumption concepts of young people. More and more young people enjoy early consumption and also enjoy the benefits brought by the convenience of using credit cards. Therefore, bank customers Sources and income have also been increased, ensuring that they can occupy a certain market share.

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

3. Banks have certain requirements for the issuance of credit cards, and will be punished if they fail to complete the tasks. This is why many banks are very concerned about the promotion of credit cards.

4． For some people with excessive spending habits, credit cards are not harmful to them, so they are very happy to accept bank staff promoting credit cards.

How do banks make money from credit cards?

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

In fact, sometimes we are under pressure to repay in full, so many people choose the minimum repayment. Although there is no overdue payment, the unpaid portion will still accrue interest, and the profits are very generous.

2. Many credit card applications will have an annual fee for the card. Some banks have no annual fee but will stipulate a fixed amount of consumption each year, or purchase bank financial products, so the bank will always make profits.

What are the benefits of applying for a credit card

1. Before mobile payment became popular, many people had to carry a large amount of cash when going out, and safety could not be guaranteed. Nowadays, credit card POS machines are popular, which can reduce the security risks and troubles caused by carrying large amounts of cash.

2. Most credit cards have various consumption policies, and various preferential policies based on different usage scenarios. Whether it is redeeming points for gifts, cash rebates for overseas purchases, free first-class flights, etc., many people can get a lot of free benefits.

3. Everyone uses credit cards. A good consumption record can also improve our level, and we can get higher amounts and lower interest rates in terms of borrowing and other aspects. Many people are very loyal to credit card consumption for this reason.

Why do people like to apply for a credit card? What are the benefits? What are the disadvantages?

Everyone likes to apply for a credit card because it can:

1. You can earn points by swiping your credit card, and you can redeem gifts or airline miles by earning a certain amount of points.

2. Certain credit cards can provide discounts for consumption in some places. For example, ICBC credit cards will regularly postpone store information where discounts are available.

3. If you are unable to come back temporarily, using a credit card is equivalent to a small interest-free loan. As long as you repay during the final repayment period, you don’t have to pay interest. In the current wave of interest rate increases, this is a certain thing. Advantages.

4. Most credit cards can now waive the annual fee by swiping the card several times, but debit cards still have to pay an annual fee of 10 yuan per year.

5. If you apply for a credit card with VISA or MasterCard, you can swipe the card directly abroad, and it can be directly converted into RMB according to the current exchange rate, eliminating the trouble of queuing up at the bank for exchange (debit cards are available at It cannot be used in many places abroad).

Benefits:

Compared with ordinary bank savings cards, the most convenient way to use credit cards is that they can be used for ordinary consumption without cash in the card. In many cases, as long as Just return the consumed amount on schedule.

1. You can use overdrafts without deposits, and you can enjoy an interest-free period of 20-56 days for on-time repayment without any interest charges (most banks will charge an interest of 50,000 cents on the day of cash withdrawal. There is also a 2% handling fee. ICBC cash withdrawals are free of handling fees and only charge interest).

2. Swiping your card when shopping is not only safe and convenient, but also provides points for gifts.

3. You can enjoy discounts when using the card at the bank's designated merchants.

4. Accumulate personal credit and add integrity records to your credit file, which will benefit you throughout your life.

5. It is accessible nationwide and you can withdraw money or make purchases by credit card at ATMs and POS machines with the UnionPay logo. (Note: Credit cards are only suitable for consumption. It is best not to withdraw cash. The cash withdrawal fee is very high, which is not cost-effective)

6. Spend by swiping the card, collect existing points with some credit cards, and have various discounts and lucky draws throughout the year. , you can always be surprised by just using the card. (Most credit card online payments have no points, but online shopping payments are very convenient and fast)

7. Free monthly mailing of statements, allowing transparent control of every consumer expenditure. (We are now advocating green environmental protection, and you can cancel paper statements and change them to electronic statements)

8. The unique supplementary card function is suitable for couples to manage finances at the same time, or to control the financial expenditures of their children.

9. The free choice of one card and dual currencies is available all over the world. Overseas consumption can be repaid in domestic RMB.

The 10.400 telephone number or the 5-digit short number starting with 9 is available 24 hours a day. Loss reports are effective immediately and there is zero risk of losing the card.

11. Have validity period: It is known that domestic credit cards are generally valid for three or five years.

12. Use third-party platforms (the domestic platform that supports credit card bill management is mainly Jujindou) to conduct business cooperation and provide preferential services to cardholders.

Disadvantages:

The invention of credit cards is like a double-edged sword, which can solve the temporary economic crisis, but the purpose of banks issuing credit cards is to make money. Once the interest-free repayment limit is exceeded, time, a high amount of interest will be charged, usually five ten thousandths of interest per day.

1. Blind consumption

Swiping a card is not like spending money one by one like paying with cash. Once you swipe it, you don’t feel anything, just a few numbers, which leads to blind consumption and spending money like this. Running water.

2. Excessive consumption

Installation for laptops, digital cameras, and smartphones. While enjoying your favorite items in advance, you must also consider whether you are able to repay them.

3. High interest rates

If you do not know how to take care of your credit card and cannot repay as scheduled when the final payment date arrives, the bank will charge high interest rates. (The minimum repayment for the first month of a credit card shall not be less than 10% of the overdraft amount of the month)

4. Annual fees are required

Credit cards basically have annual fees, but Basically, there is a policy of waiving annual fees. For example, China Construction Bank only needs to swipe the card three times a year to waive it; but if the card is not swiped the number of times specified by the bank in a year, an annual fee will be charged.

5. Credit card fraud

Credit cards are basically password-free by default. This makes it easy for others to steal your credit card when it is lost or stolen, causing unnecessary trouble or loss; but in fact, credit cards can also be used to apply for swiping purchases with passwords - it depends on how to manage the credit card. Of course, many people lack experience in this area and cancel the account after canceling the credit card, and are re-applied by some criminals. It’s not worth it to overdraw your credit card and lose money in vain.

6. Impact on personal credit record

Long-term malicious debt will naturally affect personal credit record and even be blacklisted by the bank. If you want to borrow money from the bank to buy a house or a car in the future, you will have to There is a possibility of being rejected by the bank.

7. Repayment troubles

You have to go to the bank every month, which is often overcrowded. Not everyone can repay online.

8. Cancellation troubles

CCTV once reported that some cardholders still received bank statements several months after canceling their credit cards after paying off all the outstanding balances. What happened after that was very confusing. It's miserable. This article titled "Credit Cards That Can't Be Repaid" reveals the shortcomings of today's credit cards.

Why should you apply for a credit card? What are the benefits of credit cards?

Many card friends have always been concerned about credit cards. I keep a respectful distance, especially when I see negative news such as "someone was sentenced for overdrafting his credit card by

In fact, credit cards are not a scourge. A large part of the reason for these negative news is due to problems with cardholders. It has nothing to do with the credit card itself. There is no need to reject credit cards.

You know, for many people, the advantages of holding a credit card outweigh the disadvantages. Let’s introduce to you why you should use a credit card and how to choose the right credit card.

Analysis of the three major benefits of credit cards:

1. Accumulated credit: People who have never dealt with a bank will have a blank record in the central bank’s credit reporting system. If you want to change this situation, start by using a credit card. As long as you apply for a credit card, swipe the card frequently and repay it on time, you can establish good personal credit, which will be very beneficial for handling bank-related business in the future.

2. Save money: Credit cards can be used for overdraft consumption, but don’t be blind when swiping your card. It is best to understand clearly what discounts you can enjoy with your credit card, so that you can save money by swiping your card. For example, if you apply for a Bank of Communications credit card, you can participate in the "Redtest Friday" event and get a refund of card swiping points by swiping your card in supermarkets.

3. Temporary emergency: For example, if your laptop is lost, you must buy a computer immediately because of work needs, but you have no savings. If you want to buy a computer, you can only borrow money from someone. If you have a credit card, you can swipe the card to buy a computer immediately, and you can also choose to repay in installments to relieve stress. All in all, having a credit card with a certain limit can make you more prepared when facing emergencies.

The benefits of credit cards are not limited to the above three points, so I will not introduce them one by one. You can experience them yourself during the process of using the card.

Why apply for a credit card? Give you 5 reasons!

When I didn’t have a bank card before, I fell in love with a product in the mall, but gave up the purchase because I didn’t have enough cash or asked relatives and friends to borrow money to buy it. In today's society, credit cards have appeared. The existence of credit cards makes it easy to own today's goods and spend money in the future. Kabaobao found that many people have misunderstandings about credit cards. It does not mean that poor people do not need to apply for credit cards if they have no money. This is a misunderstanding caused by not fully understanding the role of credit cards. So what are the benefits of credit cards?

Kabaobao summarized 5 major points:

1. You can spend first and then repay.

The biggest advantage of a credit card is that if you don’t have enough cash in your pocket or have no deposits in your account, you can use a loan to overdraft and pre-borrow funds from the bank for shopping and consumption. The bank will also have an interest-free period of 20 to 50 days. As long as the cardholder repays the loan in full within the interest-free period, no other interest will be paid.

Two.

Maintaining good credit is conducive to loans

An individual's income level, financial resources, credit overdrafts and personal loans, including lawsuits and penalties when bad credit occurs, etc., will be recorded on the individual's credit record . In today's society economic wealth is also reflected in a good credit record. For those who have not borrowed money from the bank, the bank will automatically consider you to be a person without credit. Card Baby hopes that everyone will establish a personal credit record as soon as possible. You can apply for a credit card, use this card for long-term consumption and timely repayment, and maintain good personal credit discipline.

Three. Apply for high-value credit cards and enjoy privileges

For example, for ordinary cards; free insurance, free movie viewing, points exchange for gifts, travel draws, free car washes, etc. Platinum card; high-value insurance, airport VIP service, foreign visa exemption, free physical examination, free golf experience, etc. You can enjoy all kinds of benefits. And many banks have cooperative relationships with shopping malls, supermarkets, etc., allowing cardholders to enjoy many discounts.

Four. Understand consumption through bills

Usually after we use credit cards to make purchases, there will be regular electronic bills or paper bills sent to our homes by the bank. Cardholders can understand their own consumption through the bills. Monthly shopping and consumption expenditures can be used to analyze personal consumption tendencies and manage your own income and expenditure rationally.

Five. Holding a card is a sign of identity

Not everyone can apply for many types of credit cards. It is necessary to provide proof of financial resources and identity to the bank, and the proof must be convincing to the bank. There are also some credit cards that can only be applied for by invitation from the bank, and banks will not accept personal applications. Therefore, Kabaobao believes that a credit card is a second ID card that can show personal identity and credit.

The above five major points mentioned by Ka Baobao are all reasons for not wanting to apply for a credit card~ I believe that many friends will apply for a credit card with many benefits after reading Ka Baobao’s words~ In the future If you have the opportunity, Kabaobao will tell you how to apply for a credit card, which channel is better to apply for, how to apply for a higher limit, and how to improve your application qualifications. Kabaobao will teach you if you have the opportunity.

This is the end of the introduction on why there are so many credit cards and why there are so many credit cards. I wonder if you have found the information you need?