China News Service, June 29, according to the website of the China Insurance Regulatory Commission, on the 29th, the Consumer Insurance Bureau of the China Banking Regulatory Commission issued consumer tips on the rational use of credit cards. The reminder points out that if the credit card is in arrears or arrears in annual fees, there will be interest costs, which may also affect personal credit reporting. Consumers should fully understand the credit card related information such as credit card settlement rules, billing date, annual fee/late fee/exceeding fee collection method when applying and using credit cards.
Data Map: People show bank cards. China News Service reporter Zhang Yunshe
In recent years, the credit card business has developed rapidly and has become an important part of the bank’s retail business. It has played an active role in promoting residents’ consumption and facilitating residents’ lives, but the problems in the process of using credit cards have also become increasingly prominent. According to some complaint hot spots and consumer misunderstandings in the credit card business, the Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission issued the 2020 No. 4 risk reminder to remind consumers that they should correctly understand the functions of credit cards, use credit cards reasonably, establish a scientific concept of consumption, rational consumption, and moderate consumption. Overdraft.
The tip said that consumers should scientifically understand the functions of credit cards. The main role of credit cards is to meet the daily, high-frequency, small-value consumption needs of financial consumers and to facilitate consumers' lives. However, some consumers are over-reliant on credit card overdrafts, burdened with large credit card loans that exceed their repayment ability, and even fall into the situation of "repaying loans with loans" and "supporting cards with cards", resulting in problems such as tight funds and double repayment pressure.
In addition, there are consumers who illegally use credit card borrowings in non-consumer fields such as real estate, securities, funds, and financial management. Enlarging capital leverage can easily lead to unsustainable personal or family finances, and will bear corresponding consequences, which will also cause financial institutions to accumulate risks. Consumers should correctly understand the functions of credit cards, rationally overdraft consumption, not "supporting cards with cards", "repaying loans with loans," and not "short-term borrowing, long-term use", and reasonably play the role of consumer support for credit loans and other consumer loan instruments.
The reminder emphasizes that consumers should use credit cards reasonably. Credit card installment repayment and the minimum repayment method can temporarily relieve the pressure, but it will also generate corresponding fees and interest. Consumers should reasonably choose the credit card installment repayment or the minimum repayment method to avoid overdue credit cards.
The prompt also pointed out that consumers should establish a rational consumption concept. When using a credit card for consumption, consumers should plan their funds reasonably and arrange and manage personal or family funds. Consider rational consumption based on your actual needs and income and expenditure status, adhere to the scientific consumption concept of "expenditure within the means", do a good job of personal or family financial planning, and prevent daily consumption from being affected by excessive consumption.