Save the trouble of carrying cash. Credit card consumption avoids the trouble of paying cash in the past, and there is no need to worry about the danger of carrying too much cash with you. Users can spend first and then repay, which is very helpful in the case of insufficient capital turnover.
You can participate in various discount activities. Many businesses have cooperation with banks, and consumers can enjoy discounts and other preferential activities when they carry credit cards with them, so that customers can save money.
Online consumption is convenient and fast. Many online shopping malls or Taobao shops have opened credit card payment methods, catering to consumers' psychology of spending with credit cards. Although credit card online consumption has no points, its convenient and fast payment method is liked by many people.
Financial investment. Generally speaking, the interest-free period of credit cards is about 55 days, which means that consumers do not have to pay any interest to the bank during this period after spending by credit cards. During this period, some families will invest their funds in other places as working capital and manage their finances reasonably.
Extra privileges. Some bank credit cards not only enjoy discounts, points and other benefits, but also provide additional services. For example, some bank credit cards can enjoy free car wash service at designated places at a fixed time every week, or some bank credit cards provide free insurance service. Is it cost-effective?
No restrictions on the use of the area. Credit cards can be used all over the country, and some credit cards can even be used directly abroad. As long as it is an ATM or POS machine marked with UnionPay logo, you can spend it by credit card.
Disadvantages of credit cards:
Irrational consumption. It is precisely because credit cards are convenient and fast to use, unlike paper money, which looks very distressed. Some irrational consumers tend to spend blindly, spend money like water, and finally regret it when they repay.
Interest is high. Everyone knows that every bank's credit card has a repayment date. If the user fails to pay off the current arrears before the final repayment date, he needs to pay bank interest and late fees.
There is an annual fee for credit cards. Every bank's credit card has an annual fee. Generally, banks will launch the activity of "swiping the card six times a year to avoid the annual fee for the next year" to encourage users to swipe their cards in disguise, otherwise they will charge an annual fee in the second year to increase consumption.
Overdue repayment will affect personal credit history. If the user fails to repay the loan within the time limit, it will also affect the user's credibility in the bank and bring influence and trouble to the future loan.
Stealing brush phenomenon. By default, credit cards have no passwords. Although many people set passwords when opening cards, there are also many cases of fraud and theft. Criminals use high-tech means to steal users' passwords and card numbers and spend them at will, which has caused great trouble.