China Banking Regulatory Commission warned: Don't "support cards with cards and repay loans with loans"

At present, almost every bank has introduced credit cards to encourage young people to apply for them. Holding a credit card will give them different benefits, which has become the mainstream payment method for young people. After spending by credit card this month, you can return all the spending quota before the repayment date of the next month. With the prevalence of credit cards, the situation of "keeping cards with cards and repaying loans with loans" has gradually emerged. The China Banking Regulatory Commission reminded cardholders not to raise cards with cards and repay loans with loans. Let's look at the specific situation.

On June 30, 2020, in response to some hot credit card complaints and misunderstandings, China Banking and Insurance Regulatory Commission issued a risk warning to remind consumers to use credit card functions reasonably and correctly, establish a correct and scientific concept of consumption, not blindly follow rational consumption, and limit credit card overdraft.

The China Banking Regulatory Commission also said that the main business of credit cards is to meet people's daily consumption, high frequency and small consumption needs. Some cardholders will overdraw their credit cards due to excessive consumption and bear a lot of credit card debts. In the end, the choice of "raising cards with cards and raising loans with loans" directly led to the doubling of repayment pressure. In addition, it also points out that cardholders borrow money from credit cards for non-consumption areas such as securities, funds and wealth management. When using a credit card, don't "keep the card with the card and repay the loan with the loan".

To raise a card with a card and repay the loan with a loan is actually to use one credit card or withdraw cash and then use other credit cards to return the first one. At present, the interest charged by credit card cash withdrawal is calculated on a daily basis, and the daily interest rate is five ten thousandths of the cash withdrawal amount, which is very high. For a long time, raising a card with a card and repaying the loan with a loan eventually led to the inability to repay the credit card, which also caused the following serious consequences.

1, interest, penalty interest, reasonable use of the credit card itself will not generate any fees, if the credit card is used in installments, it will generate interest, and the credit card will be charged with penalty interest and late fees after it is overdue, and the cardholder's repayment pressure will double, and his life pressure will become more and more serious.

2. Affecting credit, we all know how important credit is to individuals. In the later period of bad credit, it is almost impossible to borrow money from the bank. After the mortgage and car loan were rejected by the bank, the credit stain was retained for five years, which could not be changed or deleted; Inclusion in the blacklist of credit information will also restrict the use of high-speed trains and planes.

3. Being sued and sentenced, and the bank has owed a large amount of money for more than three months. After repeated collection, users who are unwilling to repay will file a lawsuit, and if the circumstances are serious, they will not only be fined, but even go to jail.

Therefore, it is not a long-term solution to raise the card with the card and repay the loan with the loan, although it can meet the temporary needs.