One,

Card design of credit card

Second,

Basic functions of credit cards

Third,

Types of credit cards

Fourth,

The advantages and disadvantages of credit card

First, the card design of credit card

If the credit card is discussed from the red machine, it can be divided into two different design types: main card and special card. There is a big difference in the size of the two credit cards.

Master card: Credit card is generally a special carrier plastic card with consumer credit, which is mm long, mm wide and 1mm thick. It is issued by banks to individuals and units, so that they can shop, spend and deposit and withdraw cash from banks. The form is a card with the name, expiration date, number and cardholder's name printed on the front, and a magnetic stripe and signature on the back.

Special-shaped cards: Due to the demand of personality, printing is not limited by size, resulting in many "weird" cards in various countries around the world, which we call special-shaped cards. Among them, geometric cards such as rectangle, square, triangle and ellipse are called "non-standard cards"; Some special cards in the shape of animals and dolls are called "quasi-cards". Relatively speaking, the manufacturing process of "quasi-shape card" is more difficult than geometry.

Second, the basic functions of credit cards

Credit cards are issued to cardholders by banks or credit card companies according to the credit and financial resources of users. Cardholders don't need to pay cash when using credit cards, they will make repayment on the bill date.

The purpose and function of credit card are endowed by the issuing bank according to the social needs and internal operating ability. Although the functions of credit cards issued by banks are not completely consistent, all bank credit cards have basic functions such as shopping, transfer settlement, savings, micro-credit, remittance settlement and installment payment.

Shopping consumption function

When the expenses of goods and services paid by the cardholder in the process of shopping and consumption exceed the balance of his credit card account, the issuing bank allows the cardholder to make short-term overdraft within the prescribed limit. In essence, this is consumer credit provided by banks that issue credit cards to customers. So we say that credit card has the function of consumer credit. Credit card holders are different from customers who use other settlement methods. Customers who apply for credit cards must go through the bank's credit information and have certain repayment ability. Because the credit card overdraft accounts for a small proportion of the credit card transaction amount, at the same time, the bank has a set of measures to prevent and recover the overdraft risk loss. Therefore, although credit card overdraft can expand the level of social consumption with the help of the function of consumer credit to a certain extent, it does not necessarily lead to the expansion of social consumer credit. The interest charged by the credit card issuing bank for credit card overdraft is higher than the expected annualized interest rate of bank loans in the same period, which shows that although the card issuing bank provides overdraft convenience for credit card holders, it also uses the expected annualized interest rate lever to limit it.

Transfer settlement function

Credit card holders do not need to pay in cash after shopping in designated shopping malls and restaurants, but only need to pay by credit card transfer. Transfer settlement is the most important function of credit card. Credit card has the function of transfer settlement, which can provide the widest settlement service for the society, facilitate the purchase and sale activities of credit card holders and shopping malls, restaurants and other service industries, reduce the use of social funds and currency, and save social labor, so it has received great attention in China.

Save function

Credit card holders can go through the deposit formalities at the savings outlets (or business halls or offices) designated by banks with a wide range of credit cards. It is more convenient to use a credit card to handle the deposit and withdrawal procedures than a savings passbook. It is not limited by the deposit location and savings office, and it can be deposited and withdrawn at all branches and inter-bank institutions of the issuing bank, which greatly facilitates the savings activities of credit card holders and improves the enthusiasm of residents for saving. At the same time, to withdraw cash by credit card, the bank should check the cardholder's ID card and check the cardholder's signature, which is helpful for the issuing bank to maintain the cardholder's capital security.

Microfinance function

Small loans, first of all, credit loans, do not need mortgages. It mainly solves the financial service problem of low-end customers that traditional banks cannot serve. Its customers are low-end customers (including productive poor people and micro-enterprises); Because of the particularity of the service object, it is required to provide unsecured credit loans; Because it is a credit loan, the amount must be small and the risks should be controlled; The amount of microfinance in the world is generally measured by the multiple of local per capita GDP. According to the experience of the trading center in managing small loans, it is generally not higher than 5,000 yuan in rural areas and 20,000 yuan in cities. Because it is a small credit loan, it is necessary to have a loan management model different from that of ordinary banking institutions; At the same time, due to the high operating costs and risks of micro-credit loans, it is necessary to charge higher loan interest that can make up for the costs and risks; Finally, due to its particularity, it also requires relatively flexible policies and practices in financial supervision.

Bank loans are still the main financing channel for SMEs. It is very difficult for these small and medium-sized enterprises with high operating risks, uncertain development prospects and difficult mortgage guarantee to obtain bank loans. Even if they can get the loan, they may have missed the business opportunity.

Credit card cash withdrawal function

In recent years, with the gradual popularization of credit cards, banks have launched the "cash withdrawal from credit cards" service, but this service is not for consumers to withdraw money to buy a house, but for emergency needs. Many citizens have the experience of borrowing money from others, and the cost is often not very large, maybe one or two thousand, at most tens of thousands. But the taste of borrowing money is unpleasant, and it is not worth looking for a bank loan for this money. Therefore, from the perspective of providing humanized services to customers, banks have opened the function of "cash withdrawal by credit card". As long as it is not a large amount of money, it can be taken directly at the counter or ATM, which is very convenient.

Foreign exchange settlement function

When a credit card holder goes out for a trip or business trip and needs to collect money in a different place, he can go through the deposit formalities with the card in a different inter-bank network institution, and the bank will remit the money back to the local cardholder account. When you use money, you can use your card to go through the withdrawal procedures at member banks around the country. You can also use the card to transfer the money to another place, and then use the card to pay for the transfer settlement.

Installment payment function

Credit card installment payment refers to the business that when a cardholder uses a credit card to make a large amount of consumption, the card-issuing bank pays the consumption funds of the goods (or services) purchased by the cardholder to the merchant in one lump sum, and deducts the consumption funds through the cardholder's credit card account in stages according to the cardholder's application, and the cardholder repays according to the monthly recorded amount.

Most domestic banks have credit card installment business, and installment payment is generally divided into POS installment, "mail order installment" and "bill installment" through the Internet and mail according to different occasions.

Third, the types of credit cards.

Credit cards are divided into credit cards and quasi-credit cards. Credit card refers to the credit card issued by the bank, which gives the cardholder a certain credit limit, within which the cardholder can spend first and then repay. A quasi-credit card refers to a quasi-credit card issued by a bank. The cardholder deposits a certain amount of reserve fund according to the regulations. When the balance of the reserve fund account is insufficient to pay, it can be overdrawn within the prescribed credit limit. Credit cards generally refer to credit cards. In addition, credit cards are classified as follows:

(a) according to the different card issuers, it can be divided into bank cards and non-bank cards.

(1) bank card. This is a credit card issued by the bank. Cardholders can shop and spend money at the special merchants of the issuing bank, or they can withdraw cash at any time at the outlets of the issuing bank or at places with ATMs.

(2) Non-bank card. This kind of card can be divided into retail credit card and travel entertainment card. Retail credit cards are credit cards issued by commercial organizations, such as department stores and oil companies, which are specially used for shopping in designated stores or filling gas stations. , and settle accounts regularly. Travel and entertainment card is a credit card issued by airlines, travel companies and other service industries, which is used for ticket purchase, dining, accommodation, entertainment and so on.

(2) According to different card issuers, it can be divided into corporate cards and personal cards.

(1) company card. Company cards are issued to various industrial and commercial enterprises, scientific research and education institutions, state party and government organs, armed forces, organizations and other legal person organizations.

(2) Personal card. Personal cards are issued to individual urban and rural residents, including workers, cadres, teachers, scientific and technological workers, self-employed households and other adult urban and rural residents with stable income sources. The personal card is applied in the name of an individual and bears all the responsibilities for its use.

(3) According to the credit status of cardholders, it can be divided into ordinary cards and gold cards.

(1) ordinary card. Ordinary cards are issued to cardholders with average economic strength, credibility and status, and the requirements are not high.

(2) gold card. Gold card is an advanced credit card that pays a high membership fee and enjoys special treatment. Card issuers are institutions with high credit, strong repayment ability, credit or certain social status. The starting point of gold card authorization limit is higher, and the additional service items and scope are wider, so the requirements for related service fees and deposits are higher.

(4) According to different payment methods, credit cards can be divided into debit cards and credit cards.

(1) credit card. That is, when the issuing bank provides bank credit, it overdraws first, and then repays or pays in installments. Most of these cards are used for international circulation. In other words, the way to allow cardholders to pay off their credit card accounts is "consume first, then deposit". Most of these cards are used for international circulation.

(2) Debit card. It's a credit card issued by the bank. Deposit first and then spend. When applying for a credit card, the cardholder needs to deposit a certain amount of money in the issuing bank in advance as a backup. The cardholder needs to use the card on the basis of the deposit balance, and generally no overdraft is allowed. Credit cards issued by banks in China are basically debit cards, but cardholders are allowed to make goodwill, short-term and small overdrafts for consumption purposes. Set different limits according to different card types, repay within the prescribed time limit, and pay interest at the same time. So it is essentially a debit card with certain overdraft function.

(5) Credit cards can be divided into international cards and regional cards according to their different circulation ranges.

(1) international card. International card is a kind of credit card that can be used outside the issuing country and is universal. MasterCard, VISACard, AmericanExpressCard, JCBCard and DinersClubCard issued by five overseas groups (MasterCard, Visa International, American Express Card and DinersClubCard) are mostly international cards.

(2) regional cards. Regional card is a kind of credit card that can only be used in the country or region where the issuing bank is located. Most credit cards issued by commercial banks in China belong to regional cards.

Fourth, the advantages and disadvantages of credit cards

superiority

Compared with ordinary bank savings cards, the most convenient way to use credit cards is for ordinary consumption, and there is no cash in the cards. In many cases, it is enough to return the consumption amount on time.

1. You can spend money without overdraft, enjoy an interest-free period of 20-56 days, and repay on time without any charge (most banks will charge 0.5% interest and 2% handling fee on the day of cash withdrawal, and ICBC will only charge interest);

2. It is not only safe and convenient to swipe your card when shopping, but also a bonus gift;

3. Special merchants who hold cards in banks can enjoy preferential treatment;

4. Accumulate personal credit, add a credit record to your credit file, and benefit for life;

5. Access to the whole country is barrier-free, and you can withdraw money or spend money by credit card on ATMs and POS machines with UnionPay logo; (Note: Credit cards are only suitable for credit card spending. It is best not to withdraw cash, which is expensive and uneconomical. )

6. Credit card spending, extracting existing points from some credit cards, various discounts and lottery activities throughout the year, so that you can always have surprises as long as you use the card. (Most credit card online payment has no points, but online payment is very convenient and fast);

7. Mail the statement free of charge every month, so that you can grasp every consumer expenditure transparently; (Now advocating environmental protection, you can cancel the paper statement and change it into an electronic statement. )

8. Unique supplementary card function, suitable for husband and wife to jointly manage their finances or master their children's financial expenses;

9. The free choice of one card and two currencies is popular all over the world, and consumption abroad can repay in RMB;

Telephone or 5-digit short number with prefix "9" provides 24-hour service, and loss reporting takes effect immediately, with zero card loss risk;

1 1. Validity period: It is known that the validity period of domestic credit cards is generally three to five years.

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

disadvantaged

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

1, blind consumption

Unlike paying cash, swiping a card is not a sum of money. I don't feel anything when I swipe my card. A few figures lead to blind consumption and spending money like water.

2. Excessive consumption

Notebook staging, digital camera staging, smart phone staging, while enjoying your favorite items in advance, you should also consider whether you can repay them.

3. High interest rates

If you can't take care of your credit card and can't repay it on time when the final repayment date comes, the bank will charge you high interest. (The minimum repayment amount of a credit card in the first month shall not be less than10% of the overdraft amount in the current month) [5]

4. An annual fee is required.

Credit cards basically have an annual fee, but they basically have an annual fee-free policy. For example, CCB can be exempted as long as it is brushed three times a year; But if you don't swipe your card to the bank the specified number of times within a year, you need to charge an annual fee.

Step 5 steal brushes

Credit cards are basically password-free by default, so when they are lost or stolen, they are easily stolen by others, causing unnecessary troubles or losses; But in fact, credit cards can also be charged by passwords-it depends on how you manage your credit cards. Of course, many people have not cancelled their credit cards because of their lack of experience in this field, and some lawless elements have reapplied for credit card overdraft, which is not worth it.

6, affect personal credit records

Long-term malicious default will naturally affect personal credit records and even be blacklisted by banks. If you want to borrow money from the bank to buy a house and a car in the future, you may be rejected by the bank.

7, repayment trouble

Going to the bank every month is often overcrowded, and online repayment is not suitable for everyone.

8, cancellation trouble

There are fewer channels for users to cancel their credit cards than to apply. It is more troublesome to cancel.

What credit card knowledge do you have?

1. There are two main requirements for credit card application:. Age requirement: 18-60 years old; Have a stable job and income source. 2. Materials and certificates to be provided when handling: For domestic residents, only complete and signed application form, identity certificate, residence certificate and income certificate are required; Foreigners and Hong Kong, Macao and Taiwan people also need to provide: a foreigner's residence permit (the reason for residence must be employment) or a foreigner/Hong Kong, Macao and Taiwan people's employment permit; If it is a private owner, in addition to the above information, it is also necessary to provide: a copy of the business license showing the name of the applicant, the name of the enterprise and the date of opening. 3. If you want to apply for a credit card with a large amount, you need to provide proof of good economic strength, such as a copy of the real estate license and a copy of the car driving license; Bank loan account (good credit, overdue for no more than 60 days) or copy of deposit certificate, etc. Four. Cash withdrawal by credit card: Cash withdrawal by credit card overdraft: \A Handling fee: it depends on bank regulations. For example, CCB's credit card charges 0.5% of the cash withdrawal amount, with a minimum of 2 yuan per transaction and a maximum of 100 yuan per transaction; The credit card of China Merchants Bank is charged at 1% of the cash withdrawal amount, with a minimum of 10 yuan per transaction; \B Interest: calculated at the daily interest rate of five ten thousandths. Cash withdrawal of credit card overpayment: some banks need to charge fees, while others don't. For example, the handling fee of China Merchants Bank is 0.5% of the withdrawal amount, and the minimum fee is 5 yuan RMB or US$ 65,438 +0. \ 5.POS credit card consumption: timely and full repayment, interest-free; Pay the minimum repayment amount on time at the rate of 0.5 ‰ per day; Overdue repayment, in addition to the above interest, there are also late fees.

Credit card raiders: using small knowledge

Credit card application, quota, points, handling fee, annual fee, account cancellation, installment, cash withdrawal and cash withdrawal have been released, and there are still many tips worth collecting. It is recommended that users who apply for a card for the first time read it carefully to have an overall understanding of credit cards and avoid unnecessary expenses and bad credit records.

Saving money by credit card will be overcharged.

The bank will certainly be happy to deposit the money in the credit card, but the loss lies with the cardholder. First, the bank will not pay interest, which is equivalent to giving the bank an interest-free loan; Secondly, if the cardholder takes out the money again, he has to pay a certain handling fee, ranging from several yuan to several hundred yuan.

The card has been cancelled, and there may still be arrears.

The annual fee system of credit cards may make the cancelled credit cards still generate annual fees, and once they are in arrears, their credit records will be affected. It is best to destroy the card after cancellation, because it can still be used in some consumer places that only need to extract information without checking, and it may be stolen.

If there is a penny less, the interest will be paid in full.

At present, except for a few banks, most banks still adopt the full interest-bearing system, and the overdraft limit is 1 000 yuan. Even if 1 min is not repaid, the interest will still be calculated as 1 1,000 yuan, and the interest will still be "rolling interest". Including the overdue payment, only 1 cent has not been paid back, which may result in a considerable expense.

The installment fee is higher than the appearance fee.

Although credit card installment can solve the urgent need, it is actually a disguised loan, and its handling fee is even higher than the loan interest. If you don't repay on time and in quantity, there will be other expenses. Those goods under the banner of interest-free promotion may not be as good as buying them directly in the mall.

You can easily shop online without online banking.

Before shopping online, you must queue up at the bank counter to apply for online banking. When shopping, you also need various digital certificates, U shields, dynamic passwords, etc. This general online shopping method has fallen behind the trend of the times. In fact, it is no longer necessary to open online banking for online credit card swiping.

Currency conversion fee hidden by overseas credit card swiping

Accurately speaking, the foreign exchange handling fee should be "international settlement fee", which refers to an intermediate currency conversion fee charged by the international card organization to the issuing bank when the actual consumption currency is different from the credit card settlement currency. For example, suppose you travel to Europe and bring a visa RMB-one-yuan dual-currency card, then the euros you consume need to be converted into US dollars when you enter the account, and in the process, a foreign exchange handling fee is incurred. Usually, the issuing bank will charge the cardholder this fee, but many cardholders don't care because this exchange fee will not be listed separately in the bill. But if you convert it according to the exchange rate of the day, you will find that the cost of this part is actually quite large.

99% people don't know the little knowledge of credit cards.

Today's literacy article mainly introduces two concepts, one is credit card and the other is traditional consumer loan. Although both are a kind of consumer loans, they are essentially different.

Next, let's introduce it in detail from several angles.

First, let's look at the scope of use.

1. Credit card: Credit cards have no special scope of use. You can swipe your card anywhere you can, you can also conduct online transactions, and you can even withdraw cash. Anyway, as long as you pay back on time after brushing.

2. Consumer loan: When an applicant applies for a consumer loan from a bank, he usually chooses the purpose of the loan. In other words, this kind of loan can only be used for special purposes. If you choose to buy a car, you can only use it. If you choose to decorate, it can only be used for decoration and cannot be used for other purposes.

Then, let's look at the cost of both.

1. Credit card: This so-called fee actually refers to the interest-free period of the credit card. As many card users know, the interest-free period of credit cards ranges from 18 days to 56 days. If used well, the overdraft consumption within 56 days is free. As long as the repayment is made in full on the final repayment date, there is no need to pay other fees.

2. Consumer loans: As a loan product, banks charge interest on loans, so consumer loans have no interest-free period. As long as you successfully apply for a loan, interest will be calculated as agreed from the day you borrow it, and you must repay it on time. The cost of borrowing is inevitable.

Then, look at the convenience of application.

1. Credit card: It is very convenient to apply, and there are many channels for application. Customers can apply through offline banking outlets, Bank official website, WeChat and mobile app. In the application process, you only need to provide application materials such as work certificate and income certificate, and the approval time is relatively short, and the results can be produced in two weeks at most.

2. Consumer loan: the application is troublesome, the process is cumbersome, the approval is strict, and the approval time is usually long. In many cases, applicants need to provide more supporting documents to apply for consumer loans, and even provide mortgages and guarantees.

Finally, introduce the repayment method.

1. Credit card: There are various repayment methods. If you have more money, you can repay in full. If you feel that the repayment pressure is high, you can choose to repay by installments or by the minimum amount, which makes it more convenient for cardholders to repay.

2. Consumer loan: There is only one repayment method, that is, the repayment must be fixed on schedule. Once it is paid less or not, it will be blacklisted by the People's Bank of China.

Merchants youth card

(The first withdrawal every month is free; Withdrawal amount100%; Double points for birthday month; Only for customers under the age of 30)

How much do you know about these little things about credit cards?

Do you know all the credit cards (debit cards) and the lanes in credit cards (debit cards) that have been used for so many years? In fact, there is a lot of cold knowledge in credit cards (debit cards). Here are a few points. I hope everyone can use the card better.

Why does it stand out?

The bumps on credit cards (debit cards) were originally used for friction. This kind of information is called Embosserdata, because the early pos machines can only use the information of card protrusion as your credit card (debit card) voucher to confirm the transaction on carbon paper such as blue printed paper. So with these prominent information, we can confirm the identity of the user → complete the transaction → form a document.

What is the "dotted line" around the UnionPay logo on the credit card (debit card)?

In fact, it is not a dotted line, but a message composed of miniature words. The miniature characters include: the Chinese phonetic abbreviation of UnionPay, the code of the issuing bank (including the Postal Savings and Exchange Bureau), the card code and the manufacturer code. It is said that these words need a magnifying glass to see, which is difficult for ordinary users to see with the naked eye.

Do you want to sign on the back of the credit card (debit card)?

When spending by credit card (debit card), the cashier has the right to cancel the consumption and refuse to sell the goods if he finds that the signature does not match the signature on the credit card (credit card) during the process of checking the signature. The merchant shall bear the loss caused by the theft of the credit card because the signature is not checked, but the credit card (debit card) is stolen without signature, and the responsibility lies with the cardholder. There is no need to verify the password when swiping a credit card (debit card) abroad. If you swipe your credit card (debit card) abroad without the cardholder's signature, it will affect your consumption.

What does the 3-digit card verification code behind the credit card do?

The so-called card verification code is the last three digits of the signature column on the back of the credit card (debit card), but it has many "flower names"-UnionPay calls CVN2, MasterCard calls CVC2, VISA calls CVV2, and American Express calls CSC2. These three-digit security codes are equivalent to the ID cards of credit cards (debit cards). All kinds of mobile payment card binding and online card-free consumption usually need to use this code for cardholder identity verification, so be sure to keep it well.

What is the minimum repayment amount and installment repayment?

The minimum repayment amount refers to the minimum amount you need to repay each period. No special application can be found on the monthly statement. If you can't repay in full and on time, you can repay the minimum amount on time without affecting your personal credit, but at the same time you can't enjoy the interest-free period. The bank will charge interest on the arrears until you pay them off.

Repayment by installments requires independent application, that is, the repayment amount of a single installment is divided into multiple installments, and a certain handling fee is charged according to the installment amount and the number of installments. As long as you repay the arrears on time, you can still enjoy the interest-free period, and your personal credit will not be affected.

Generally speaking, installment repayment is suitable for large bills that cannot be paid off in a short period of time, while the minimum repayment amount is suitable for situations where there is not enough funds to repay at that time, but all debts can be made up in a short period of time.

What is a cash advance?

Similar to cash withdrawal, funds are transferred to debit cards in the name of individuals within the credit card (debit card) limit, and the regulations of major banks on the proportion of cash withdrawal and cash advance to credit limit are slightly different.

Don't underestimate this cold knowledge, it can help us use credit cards (debit cards) more and understand the source of credit cards (debit cards).

This concludes the introduction and popularization of credit card tips. I wonder if you have found the information you need?