Credit cards and credit loans are easily confused. Their types are all based on the applicant's credit limit. They look like brother products, but they are very different. Let's look at the difference between credit cards and credit loans and microfinance.

1, different distribution operators

Credit card: mainly relying on the credit card platform, credit cards and a series of related services are launched: consumption staging; For businesses such as cash advance, the distribution channel can only rely on banks.

Credit loan: It refers to an unsecured and unsecured loan form. Financial institutions issue quotas according to the applicant's personal credit. The issuing carrier can be banks, private financial institutions, small loan companies or P2P platforms.

2. The application conditions and places are different.

Credit card: The application conditions require me to have a full-time stable job and pay social security for 3-6 months. The application materials only need to provide personal identity card and social security card or work certificate.

Credit card quotas are also relatively conservative. When applying for a credit card for the first time, the general amount will be between 5,000 yuan and 20,000 yuan. If the applicant uses it many times and the repayment record is good, the bank will automatically increase the quota.

If a user with an existing credit card applies for a credit card from another bank, the new card issuer will increase the amount of the new card according to the repayment record of the applicant's existing credit card, which is also a means for the new institution to stimulate users to use the new card.

Credit card is a revolving credit line. When the credit line is returned on schedule, the credit card can be recycled for lending.

Credit loan: the applicant can be a company employee, a self-employed person or a business owner. The general credit loan review benchmark will set the quota with reference to the use of credit cards. The application materials include, but are not limited to, ID card, marriage certificate, salary certificate or company income certificate, real estate license, vehicle driving license, business license (three certificates in one) and so on. The application amount is generally 18-30 times of the monthly income.

Credit loans are generally a one-time amount and will be terminated after full repayment. If there is demand, the application will be submitted again.