The so-called credit card loan refers to the overdraft function granted by the bank to the cardholder within a certain credit limit.

Cardholders of credit card loans who "borrow" for consumption can enjoy an interest-free period of dozens of days after borrowing, but if they fail to repay overdue, they will have to pay a higher penalty interest of 50,000 per day; Moreover, there is a handling fee for withdrawing cash with a credit card, which is different from pledges and mortgage loans in the general sense.

The bank increases the credit card installment amount based on the credit card holder's credit status to meet the cardholder's demand for purchasing a designated brand of car from a designated dealer. Cardholders only need to bear a certain fee to repay the purchase amount every month and fully reduce the repayment pressure of the new car loan model.

Extended information:

In the domestic credit card development model, large state-owned banks later took the lead in the stock market. In 2009, they took the lead in issuing cards and the amount of credit card loans was strong.

Characteristics of credit card loans

1. In credit card loans, since the debt is unsecured, if the customer defaults, the card issuer does not have any recourse to specific collateral;

2. In credit card loans, the card issuer's risk is equal to or exceeds the credit limit (for example, if the bank approves the cardholder's additional loan, or the cardholder spends more than his credit limit); while in installment payments In credit, the bank's risk decreases with the monthly repayment of the loan during the loan period;

3. In credit card loans, the repayment cycle, that is, the loan term, changes with the cardholder each time extended using its credit limit.

Baidu Encyclopedia-Credit Card Loans