Consumption range
Credit card: After the appearance of credit card, the biggest significance may be to update the payment method of consumers and give them one more payment option. There are no specific restrictions on the scope of credit card consumption, but many offline businesses do not fully cover the function of credit card payment, or are mainly concentrated in the middle class in first-and second-tier cities, and may spend more. If in some markets with underdeveloped offline facilities, the consumption of credit cards will be restricted.
Consumer loans:
Generally speaking, according to the regulations of CBRC, consumer loans can only be used for personal durable consumer goods and general-purpose personal consumption. At present, it is mainly used for housing mortgage loan, decoration, purchase of large durable goods, education, tourism, automobiles and so on. Considering the increasingly diversified consumption patterns, the application scope of consumer loans is relatively single.
Micro-loan: Micro-loan has no restrictions on users' consumption. As long as users meet the loan application conditions, users can withdraw their own cash and spend freely.
Approval process
Credit card: Generally speaking, because the credit card approval conditions are strict, the approval time is relatively long. The application cycle of most credit cards takes about one month, which is slow for customers.
Consumer loans: In the approval process, consumer loans do not require users to provide collateral and pledge, as long as loans can be issued, they can be completed in a few hours at the earliest. However, the credit requirements for users are high, so the scope of application is relatively small, and only some customers can enjoy the consumer loan services of companies such as Ali, Tencent and JD.COM.
Microfinance: Microfinance cannot be generalized here because the market is mixed. The approval of small loans is relatively simple, but the requirements are not low. But after years of development and experience, the approval process is very fast.
Ratio comparison
Credit card: Credit card is a comprehensive credit granted by the bank to individuals, and the amount is designed according to the maximum amount of ordinary credit card, platinum card and diamond card stipulated by CBRC. In terms of rates, the longest interest-free repayment period of credit cards is 56 days. After the interest-free period, overdraft interest is calculated at five ten thousandths of a day, with an annualized rate of nearly 20%.
Consumer loans: From the long-term cost of comprehensive loans, the expected annualized interest rate of consumer finance loans provided by banks is lower than that of credit cards, but the disadvantage lies in the credit line. The CBRC stipulates that the amount of each consumer loan shall not exceed 5 times of the borrower's monthly income. The expected annualized interest rate of professional consumer finance companies other than banks is greatly influenced by the loan term, amount and personal credit status, which is generally higher than the consumer finance business of banks.
Microfinance: Due to the low application threshold, it is normal for the microfinance industry to expect an annualized interest rate higher than that of financial institutions such as banks.
abstract
Generally speaking, these three loan methods have their own advantages. Even if the consumption scene of credit card is relatively limited, its regular preferential activities are still very attractive. Secondly, credit card installment has the advantage of interest-free period. Switching to consumer loans is also very convenient for users who want to buy products. The advantage of microfinance is that the application threshold is relatively low and the lending speed is very fast. Its disadvantage is that the expected annualized interest rate is slightly higher, and users can consider applying when they are short of money in the short term.