Why did the "margin" credit card reappear?

Pay the security deposit first and then apply for the credit card for some customers with weak credit ratings

  A few days ago, China Guangfa Bank issued an announcement that it plans to launch the "E-card" business of freezing the deposit for handling personal credit cards, that is, the customer first deposits the deposit into the electronic account opened with the bank, and the bank then reviews the credit card for the customer. will be higher than the deposit amount.

The business will be officially launched on the 24th of this month.

After the news came out, netizens talked a lot.

  Industry insiders pointed out that the use of guarantees to apply for credit cards was very common in the early stage of my country's credit card development, but with the gradual improvement of the national credit system, it has gradually withdrawn from the historical stage.

Now the "margin" credit card is back in the arena, because the credit card business has entered the stage of stock game after years of development.

How to not only meet the increasingly stringent regulatory requirements, but also expand the coverage of credit card customers has become a new topic for banks.

It is becoming a new direction for banks to develop differentiated pricing and services for medium and high-risk customers.

The credit limit does not exceed the deposit amount

  According to the "Guangfa Bank Margin Freeze Handling Personal Credit Card Service Agreement" published by China Guangfa Bank, before applying for a credit card, customers need to open a GF electronic account through online channels and deposit the deposit into the account.

After the deposit is successfully frozen, the bank will then approve the credit card and card limit.

  If a deposit of 10,000 yuan is deposited, will the bank approve a credit card with a limit of 100,000 yuan?

the answer is negative.

The agreement clearly stipulates that the total amount of credit cards shall not be higher than the amount of deposits submitted by the customer for freezing, and the actual approval situation is determined by the bank's approval policy.

If the final approved credit card limit is lower than the deposit amount, the part of the deposit higher than the credit card limit can be unfrozen.

  Can the security deposit be unfrozen after the credit card is approved?

According to the agreement, the security deposit is valid from the time the credit card is issued until the credit card is cancelled.

During this period, as long as the bank does not agree, the customer cannot transfer the deposit.

  The agreement also stipulates that the performance scope of the security deposit is all the debts incurred by the customer during the use of the credit card, in addition to the principal of overdraft consumption and overdraft cash withdrawal, it also includes interest, penalty interest, compound interest, handling fee, annual fee, liquidated damages, Damages and all costs of realizing the claim, etc.

  A reporter from Beijing Youth Daily found that many netizens expressed "difficulty understanding" about the business launched by China Guangfa Bank.

Yunnan netizen Xiao Zhang said: "My own money is frozen by the bank, and then I lend the same amount of money to the bank every month. If the interest-free period expires, I may have to pay interest to the bank. The bank is suitable, a little bit. I'm not afraid that I will be late. But why should I do this?"

Approval threshold is relatively low

  Several industry insiders told the Beiqing Daily reporter that customers who can normally apply for a credit card do not need a deposit to apply for a card.

However, in real life, there are also quite a few people who have difficulty applying for credit cards or are unable to apply for credit cards with a satisfactory limit. The "guarantee" credit card just meets their needs.

  The staff of a branch of China Guangfa Bank in Beijing said that the approval threshold for this business is relatively low, and it is suitable for some customers with weak credit ratings.

For example, customers who do not have a regular job or have poor bank performance can try to apply for this type of credit card.

Normal credit card approval, customer work status and capital flow are necessary review conditions, but after freezing the deposit, these reviews will be relatively relaxed.

However, whether it can be approved or not in the end depends on the actual situation of the applicant. It is not the amount of money saved, and the credit card with the limit can be obtained.

  A reporter from Beiqing Daily found that a considerable number of people have difficulties in applying for credit cards normally, and they are more interested in "guaranteed" credit cards.

Ms. Yang, who works part-time in Beijing, said that she has never had a fixed job, sometimes doing housekeeping, sometimes doing odd jobs, and her income fluctuates from high to low.

She had previously applied for a credit card from a bank, but was unsuccessful.

Knowing that credit cards often offer discounts on credit cards, she wanted to apply for "try it out" for the "guarantee" credit card launched this time.

  Some industry insiders told the Beiqing Daily reporter that foreigners living in China want to apply for a credit card, and the procedures are also cumbersome.

If you can apply for a credit card with a security deposit, it should be easier.

'Margin' credit cards aren't new

  Dong Zheng, a senior credit card research expert, said in an interview with a reporter from Beiqing Daily that in the early stage of the development of my country's credit card business, the personal credit system has not yet been perfected, so the mode of credit card credit through guarantee is more common.

There are usually three guarantee modes: one is the natural person guarantee, once the cardholder defaults, the natural person who guarantees it needs to pay the overdue debt; the second is that the enterprise provides the credit guarantee for the cardholder; the third is that the cardholder uses his own funds Assets such as contingent securities are collateralized.

  "At that time, there was no credit information system to check, and banks could not understand the credit status of customers. They could only manage risks through guarantees. With the gradual establishment of the national credit system, the credit card business in this form of guarantee has gradually withdrawn from the historical stage." Dong Zheng said.

  China's personal credit system has been perfected day by day, and everyone can easily apply for a credit card by filling in the application information online. Why is the "guarantee" credit card reappearing?

  Dong Zheng said that in reality, some banks have always been able to apply for credit cards by freezing deposits, but not many customers use this method.

This time, China Guangfa Bank officially announced the launch of this business. In his view, it is actively adding a new service for customers to meet the needs of those customers who cannot apply for credit cards normally and provide customers with more choices.

  Dong Zheng pointed out that, at present, banks' operation of credit card business is still generally extensive.

With the intensification of market competition and the successive implementation of credit card regulatory policies, the bank's credit card business will accelerate the transformation to refined operation.

Precise segmentation of customer groups and differentiated pricing of risk and interest rates will be the next direction for the bank's credit card business to break down.

Card-issuing banks should conduct in-depth research on new policies and regulations in the industry, and develop more products and services to meet the needs of target customers with different risk levels.

  A person in the credit card business of a joint-stock bank said that sinking to medium and high-risk customers is becoming a new direction for the development of the bank's credit card business.

In the long run, banks need to sink to the long-tail customer groups that were not included in the bank's credit whitelist, such as a large number of county-level and rural credit blank customers.

This kind of margin credit card can increase credit for medium and high-risk customers through its own capital guarantee. It is a way for banks to explore long-tail customer acquisition and business development. However, whether this model meets market demand remains to be further observed. .

  Text / reporter Cheng Jie