Knowledge about Credit Cards

Credit Card Knowledge Popularization, Credit Card Basics Book

#Credit Card Darling Show

To use a credit card wisely, you need to know a little bit about credit cards. A credit card, which is actually also called a credit card, is a way to pay for non-cash transactions and is simply a credit service. Specifically, a credit card is a proof of credit issued by a commercial bank or credit card company to a consumer with qualified credit. Consumers with credit cards can shop or spend money at specialized commercial services, which are then settled by the bank with the merchant and the cardholder, who can overdraw up to a specified limit.

Credit cards are also categorized, in general, we will be divided into credit cards and quasi-credit cards, credit card refers to the cardholder has a certain credit limit, can be in the credit limit first consumption and then repayment of credit cards; quasi-credit card refers to the cardholder is required to deposit a certain amount of reserve, when the balance of the reserve account is insufficient to pay the quasi-credit card can be overdrawn within the specified credit limit. The term credit card generally refers to credit cards alone.

What are the tips for applying for a credit card online?

When applying for a credit card, applicants can also use some tips to increase the probability of bank approval. Specifically, you can refer to the following tips:

First of all, if you are a first-time credit card applicant, you can choose a credit card that is easy to apply for. There are three levels of credit cards: Plain, Gold, and Platinum, and the Plain card is the easiest to apply for. Secondly, I suggest you choose to apply for a credit card online, applying for a credit card online on the internet will be faster and the process will be simpler.

In terms of submitting application documents, generally speaking, if the applicant can provide more valid information to the bank, such as proof of provident fund contributions, proof of real estate, proof of car ownership, bank passbook, etc., the bank's approval rate will also be higher. Finally, the applicant before applying for a credit card, buy the bank's financial products, the bank for high-quality customers, the application, through will be easier.

Credit card basics in a nutshell

After having a credit card, cardholders also need to be aware of the following monikers.

About the billing date: The Xth of each month is your billing date, and once the amount of purchases for a billing month cycle has been summarized, you need to pay it off by the next repayment date in order to take advantage of the interest-free period.

About the repayment date: you need to repay the amount due in the previous billing month before the repayment date to enjoy the interest-free period. The repayment date is usually about 20 days after the billing date, which varies slightly from bank to bank, and ranges from 19 to 25 days.

About credit limit: 1. Fixed limit: The amount of overdraft approved by the bank according to your assets and creditworthiness, and the bank may also adjust your fixed limit according to the changes in creditworthiness and the use of the card. 2. Temporary limit: The amount available for a certain period of time, which is proposed by you or raised by the bank on its initiative. 3.

About the annual fee: most banks nowadays implement the policy of waiving the annual fee for the first year and waiving the annual fee for the next year after a few strokes, except for the general platinum card, for which you can exchange points for the annual fee.

The above is the popularization of the basics of credit cards, and I hope it will help you to know more about credit cards.

Basics of credit cards

I.

Card design

II.

Basic functions of credit cards

III.

Categories of credit cards

IV.

Pros and cons of credit cards

I.

Credit cards are not as popular as they used to be. p>I. Card Design of Credit Cards

Credit cards can be divided into two different types of designs, the main card and the shaped card, if discussed from the red machine. These two types of credit cards differ greatly in the size of the card.

Main card: credit cards are generally special carrier plastic cards with consumer credit that are millimeters long, millimeters wide and 1 millimeter thick. Is issued by the bank to individuals and units, with which to the special unit of shopping, consumption and access to cash to the bank, in the form of a card printed on the front with the name of the issuing bank, expiration date, number, name of the cardholder, etc., the back of the magnetic stripe, signature strip.

Shaped card: due to the demand for personalized printing is not subject to size limitations, resulting in the emergence of a number of countries around the world in the shape of the "weird" card, such cards we call shaped card. Among them, such as rectangular, square, triangular, elliptical round and other geometric cards, we call "non-standard card"; the shape of the animal, the shape of the doll some special shaped card is called "quasi-alien card". Relatively speaking, the production process of "quasi-alien card" is more difficult than the geometry.

Second, the basic functions of credit cards

Credit cards are issued to cardholders by banks or credit card companies in accordance with the user's creditworthiness and financial strength, cardholders do not need to pay cash when spending on credit cards, to be paid back on the billing date (English: BillingDate).

Credit card uses and functions are given by the credit card issuing bank according to the social needs and internal business capacity, although the function of the credit card issued by each bank is not exactly the same, but all bank credit cards have shopping and consumption, money transfer and settlement, savings, micro-credit, foreign exchange settlements, installments and other basic functions.

Shopping and consumption

When a cardholder pays more for goods and services than the balance of his credit card account in the course of shopping and consumption, the issuing bank allows the cardholder to make a short-term overdraft within the prescribed limit. In essence, this is a consumer credit provided by the bank issuing the credit card to the customer. Therefore, we say that credit cards have the function of consumer credit. Credit card holders are different from the use of other settlement methods of customers, customers apply for credit cards have to be investigated by the bank's creditworthiness, with a certain ability to repay debts. And because the amount of credit card overdraft accounts for a small proportion of the amount of credit card transactions, at the same time, the bank also has a full set of measures to prevent and recover overdraft risk losses, therefore, credit card overdrafts, although it can be to a certain extent to expand the level of social consumption with the function of consumer credit, but does not necessarily lead to the expansion of the social consumption of credit. Credit card issuing banks charge higher interest on credit card overdrafts than the expected annualized interest rate (EAR) on bank loans over the same period of time, which shows that, although credit card issuing banks provide credit card holders with the convenience of overdrafts, they also use the leverage of the EAR to limit them.

Transfer Settlement Function

Credit card holders do not need to pay in cash after shopping at designated shopping malls and restaurants, but only need to transfer settlement by credit card. The transfer of funds is the most important function of the credit card. Credit card has the transfer settlement function, can provide the widest range of settlement services for the community, to facilitate the credit card holders and shopping malls, hotels and other service industries of the purchase and sale of activities, reduce the amount of social capital and monetary use, saving social labor, and therefore in our country has received great attention.

Savings function

Credit card holders can be in a fairly wide range, in the issuance of credit cards designated by the bank savings outlets (or business halls, office) for deposit procedures. The use of credit cards for deposits and withdrawals than the use of savings passbook is more convenient, not subject to the deposit location and the deposit of savings, can be in the card-issuing bank's all outlets and joint banking institutions through the deposit and withdrawal, which greatly facilitates the credit card holder's savings activities, and improve the residents of the savings initiative. At the same time, with the credit card to withdraw cash, the bank to review the cardholder ID card, check the signature of the cardholder, which will help the bank issuing the credit card to maintain the safety of the cardholder's funds.

Microcredit function

Microcredit, first of all, is a credit loan without collateral, mainly to solve the problem of financial services for low-end customers who cannot be served by traditional banks. Its service object is low-end customers (including poor people with production capacity and microenterprises); because of the special nature of the service object, credit loans without collateral are required; because it is a credit loan, the amount must be small enough to control the risk; the amount of microcredit is generally measured internationally by a multiple of the local per capita GDP, and based on the experience of microcredit managed by the Exchange Center, the amount of microcredit in the rural areas is generally not higher than 5,000 yuan, and in urban areas is generally not higher than 20,000 yuan; because it is a small amount of credit loans, it is necessary to have a set of loan management mode different from that of ordinary banking institutions; at the same time, because of the high operating costs and risks of microcredit loans, it is necessary to charge a higher interest rate on the loans that can make up for the costs and risks; lastly, because of its special characteristics, it is also required to adopt a relatively flexible policy and practice in terms of financial regulation. and practices.

Bank loans are still the main channel of financing for SMEs, and for these SMEs with high business risks, uncertain development prospects, and difficulties in securing loans, it is very difficult to get a bank loan, and even if you can get the loan, you may have already missed the business opportunities.

Credit card cash function

In the past few years, with the gradual popularization of credit cards, banks have "credit card cash" service, but this service is by no means intended to allow consumers to withdraw money to buy a house, but to do emergency needs. Many people have the experience of borrowing money from others, the cost is often not very large, may be one or two thousand, up to tens of thousands. But borrowing money is not a good feeling, and it is not worthwhile to seek a bank loan for this amount of money. Therefore, from the point of view of providing customers with humane service considerations, the banks opened the "credit card cash" function, as long as it is not a large amount of money, directly at the counter or ATM can be withdrawn, very convenient.

Exchange settlement function

When credit card holders go out on trips or business trips, and need to recover the money in the field, you can hold the card in the off-site inter-bank network institutions for the deposit procedures, the bank will remit the money back to the local account of the cardholder, the use of money can be held in the card in the local member of the bank for the withdrawal of the money procedures. You can also transfer the money to an off-site location with the card and then pay with the card for transfer settlement.

Installment payment function

Credit card installment payment means that when the cardholder uses the credit card to make a large amount of consumption, the card-issuing bank pays the merchant a one-time payment for the consumption funds of the goods (or services) purchased by the cardholder, and according to the application of the cardholder, the consumption funds will be debited through the cardholder's credit card account by installments, and the cardholder will make repayment in accordance with the amount of money credited to the account on a monthly basis.

The vast majority of domestic banks have credit card installment business, installment payment is generally divided into different occasions according to the shopping mall (POS) installments, through the network, mail and other means of "mail-order installments" and "billing installments".

Third, the categories of credit cards

Credit cards are divided into credit cards and quasi-credit cards, credit cards are issued by the bank and give the cardholder a certain amount of credit, the cardholder can be spent within the credit limit and then pay back the credit card; quasi-credit card refers to the bank's issuance of a certain amount of cardholders required to deposit a certain amount of imprest, when the balance of imprest account is insufficient to pay the quasi-overdraft within the stipulated credit limit. A quasi-credit card is a card issued by a bank that allows the cardholder to overdraw within a specified credit limit when the balance in the imprest account is insufficient for payment. The term credit card generally refers to credit cards alone. In addition, there are the following classifications of credit cards:

(1) According to the different card-issuing organizations, they can be divided into bank cards and non-bank cards

(1) Bank cards. This is a credit card issued by the bank, the cardholder can shop and spend money at the authorized merchants of the issuing bank, and can also withdraw cash at any time at all branches of the issuing bank or at places with automatic teller machines (ATMs).

(2) Non-bank cards. This type of card can be subdivided specifically into retail credit cards and travel and entertainment cards. Retail credit cards are credit cards issued by commercial organizations, such as department stores, oil companies, etc. They are used exclusively for shopping at designated stores or refueling at gasoline stations, etc., and are settled on a regular basis. Travel and entertainment cards are credit cards issued by the service industry, such as airlines and travel companies, and are used for purchasing tickets, meals, accommodations, and entertainment.

(2) According to the different objects of card issuance, it can be divided into company card and personal card

(1) company card. Company card issuance object for all kinds of industrial and commercial enterprises, scientific research and education and other institutions, state party and government organs, troops, groups and other legal organizations.

(2) Personal card. Individual cards are issued to urban and rural residents, including workers, cadres, teachers, science and technology workers, self-employed, and other adult urban and rural residents with a stable source of income. The personal card is applied for in the name of the individual and the individual bears all the responsibilities of using the card.

(3) According to the creditworthiness of the cardholder, status and other creditworthiness, can be divided into ordinary card and gold card

(1) ordinary card. Ordinary cards are issued to cardholders with average economic strength and creditworthiness and status, for whom various requirements are not high.

(2) Gold Card. The gold card is a premium credit card that pays high dues and enjoys special treatment. The card is issued to people with high creditworthiness, strong repayment ability and credit or a certain social status. The authorization limit of a gold card starts at a higher level, and the additional services and scope are much wider, thus requiring higher service fees and security deposits.

(4) According to the different ways of repayment, credit cards can be divided into credit cards and debit cards

(1) Credit card. It is the card-issuing bank to provide bank credit payment, the first overdraft use, and then repayment or installment, the international circulation of the use of most of these cards. That is to say, allows the cardholder in the credit card account without the deposit of its liquidation for the "first consumption, after the deposit". Most of the cards in circulation internationally are of this type.

(2) debit card. It is a kind of credit card issued by the bank to deposit money first and then consume. Cardholders in the application for credit cards, the need to pre-issuing bank to deposit a certain amount of money to spare, cardholders need to use the card to the deposit balance as the basis, generally do not allow overdrafts. Credit cards issued by banks in China are basically debit cards, but cardholders are allowed to make bona fide, short-term, small overdrafts for consumption purposes, with different limits according to different types of cards, and repayment within the specified period, and payment of interest at the same time. Therefore, it is essentially a debit card with certain overdraft functions.

(5) According to the different scope of circulation of credit cards, it can be divided into international cards and regional cards

(1) International card. The international card is a credit card that can be used outside the issuing country and is used globally. Outside the five major groups (MasterCard, Visa International, American Express, JCB credit card companies and Diners ClubCard) were issued by MasterCard (MasterCard), Visa card (VISACard), Express card (American ExpressCard), JCB card (JCBCard) and Diners ClubCard (DinersClubCard), which can be used outside the country of issue. DinersClubCard) are mostly international cards.

(2) Regional card. Regional card is a kind of credit card can only be used in the issuing country or a certain region. Most of the various types of credit cards issued by China's commercial banks are regional cards.

Four, the advantages and disadvantages of credit cards

Advantages

Credit cards compared to ordinary bank savings cards, the most convenient way to use is that you can in the case of the card does not have the cash for ordinary consumption, in many cases, as long as the amount of money returned to the consumption on schedule can be.

1. No deposit can be overdrawn to consume, and can enjoy 20-56 days of interest-free period on time to repay the interest is not charged (most of the banks will be charged on the day of the withdrawal of cash interest of five ten thousandths of a cent, there is also 2% of the handling fee, the Industrial and Commercial Bank of China withdrawal of cash free of charge handling fees, only interest);

2. Shopping card is not only safe, convenient, and there are points gifts;

3. Enjoy discounts when you spend money with your card at the bank's authorized merchants;

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

5. Access the whole country without obstacles, and you can withdraw or spend money by swiping your card at ATMs and POS machines with UnionPay logos; (Remarks: Credit cards are suitable for consumer spending only, and it is better to avoid withdrawing cash, which is very expensive. Handling fees are very high, very uneconomical)

6. Credit card spending, some credit cards to withdraw existing points, a variety of preferential and lucky draw activities throughout the year, so that you just use the card can always feel surprised. (Most of the credit card online payment no points, but online shopping payment is very convenient, fast);

7. Monthly free mail statement, so you transparent grasp of each consumer spending; (now advocate the green environmental protection, can be canceled paper statements changed to electronic statements)

8. Unique subsidiary card function, suitable for husband and wife **** the same financial management, or grasp the children's financial expenditures;

9. Freedom to choose a card in the form of dual-currency, access to the world, overseas consumption can be within the territory of the RMB repayment;

Telephone or 9 characters beginning with a 5-digit short number 24-hour service, the loss of immediate effect, the loss of the card zero risk;

11. Have a validity period: known domestic credit card validity period of three years or five years in general.

12. Utilizing a third-party platform (the main domestic platform supporting credit card bill management is Jukin Bean) for business cooperation and providing preferential services to cardholders.

Disadvantages

The invention of credit card is like a double-edged sword, which can solve the temporary crisis of economy, but the bank's purpose of issuing credit card is to make money, and once it exceeds the time of repaying the loan without interest, it will charge a high interest rate, usually five ten thousandths of a percent per day.

1, blind consumption

Brush card is not like paying cash one by one to spend the bills out, a brush, nothing to feel, a few numbers, resulting in blind consumption, spending money like water.

2, excessive consumption

Laptop installments, digital camera installments, smartphone installments, in advance to enjoy their favorite items at the same time, they have to consider whether they have the ability to repay.

3, high interest

If you will not take care of the credit card, resulting in the final repayment date arrived also can not pay as scheduled, the bank will charge you a high amount of interest. (The first month's minimum repayment for a credit card must not be less than 10% of its overdraft amount for the month.)[5]

4, need to pay an annual fee

Credit cards basically have an annual fee, but basically there is a policy to waive the annual fee, for example, the CCB can be waived as long as it is swiped three times a year; however, you don't swipe your card for a year to achieve the number of times specified by the bank, and you need to be charged an annual fee.

5, theft

Credit card is basically the default password-free credit card spending, which is very easy to be lost or stolen by someone else, causing unnecessary trouble or loss; but in fact, the credit card at the same time is also available to apply for a password to swipe the card to spend - it depends on how you manage your credit card! The fact is that many people, because of the lack of experience in this area, canceled their credit cards without canceling their accounts, and were reapplied for credit card overdrafts by some unscrupulous people, which is a waste of money and is not worth it.

6, affecting personal credit record

Long-term malicious arrears, naturally, will affect personal credit record, and even be blacklisted by the bank, and later to the bank loan to buy a house or a car, there will be a possibility of being rejected by the bank.

7, repayment trouble

Monthly to run the bank, often overcrowded, online repayment is not everyone.

8, cancel the trouble

Users cancel credit cards compared to applying for credit cards less channels. It is more troublesome to cancel.

Basics of Credit Cards

#Credit Card Dash #Credit cards are a form of loan given based on a person's credit, and it is one of the easiest forms of loan to get.

Credit cards are a way to have the item in advance and enjoy the pleasure it gives you in advance when you come across the item you have been longing for and have not opened your paycheck.

Credit cards have a cash withdrawal function, the amount of cash withdrawal is fifty percent of the credit limit, can be withdrawn directly from the ATM machine, the fee of one percent. Interest rates vary by bank.

There are two dates that you must know when using a credit card,

a billing date and a repayment date.

The billing date is set by the bank. If your billing date for the 15th, that is to naturally have the 15th as a cycle, the 15th out of the bill for the 15th of the previous month to the 15th of this month transactions occurring.

The repayment date is about 20 days after the billing date. Repayment can be made between the billing date and the repayment date. And there is a grace period of 2-3 days beyond the repayment date, during which repayment will not have any negative impact on the cardholder. However, ICBC does not have a grace period, and interest, or default charges, will be charged for repayment after 24:00 on the night of the repayment date, which is usually waived for calling customers.

The face of the credit card consists of, the name of the cardholder, the expiration date, the chip, the magnetic stripe, the security code, and the customer service number.

It is worth noting that the security code, do not easily divulge, especially unknown callers asking for a security code is certain not to give.

The introduction of the knowledge of the credit card on the chat here it.