Therefore, it is very important to determine an adequate credit line that you can take risks. Another disadvantage of handling credit cards is the loss of cardholder's time and energy.
Cardholders need to invest time and energy to keep the amount sufficient, repay on time, avoid unexpected expenses and so on. Unexpected expenses mean that credit cards will bring you extra expenses, such as the cost of reporting the loss of credit, the interest generated by not repaying in time, and so on.
Credit risk is the greater risk brought by credit card. If you don't pay attention to timely repayment, it may cause a credit stain-maybe only a few dollars, but it will make your loan impossible to repay. Excessive overdraft will affect the application for credit cards and loans in the future. The China Payment and Clearing Association issued the Guidelines on Risk Control and Safety Management of Bank Card Business, requiring banks to strictly control situations such as multiple cards for one person and excessive credit granting, and cardholders' applications for credit card overdrafts far exceeding their personal income level will be blocked.
Therefore, there are too many credit cards and the total credit limit is too high, so it is difficult to apply for credit cards again, and even handling loans will be affected to some extent. There may be too many credit cards, and the total credit line will increase accordingly, or even the credit line is too high and the cardholder's repayment ability does not match.
Some cardholders have poor self-control, like to spend too much, and overdraw a large number of credit cards, resulting in extremely high bills and inability to repay. There are also a few cardholders who apply for multiple credit cards for the purpose of cashing out, and several credit cards are swiped backwards.
Credit card cashing is illegal at first, and the legal risk is great. Secondly, cashing out is not a business without money, and you need to bear the handling fee.
According to Article 19 of the Measures for the Administration of Credit Card Business, the overdraft interest of credit cards shall be charged at the rate of five ten thousandths of the daily interest rate within 15 days from the date of signing the contract or the date when the credit card is credited to the bank; after 15 days, the interest shall be charged at the rate of ten thousandths of the daily interest rate; after 30 days or when the overdraft amount exceeds the prescribed limit, the interest shall be charged at the rate of fifteen thousandths of the daily interest rate. The overdraft interest is not divided into sections, and the interest is calculated according to the highest interest rate grade or the highest overdraft amount of the term.