How do credit card loans differ from credit loans?

There are many people using credit cards, so everyone is happy with the emergence of credit card loans. So how do credit card loans work? Credit card loans refer to the overdraft function granted by the bank to the cardholder within a certain amount. The credit card's consumer loan function is converted into an unsecured microloan, which is actually a credit card transfer loan business. Now let's see how credit card loans are used.

How to use credit card loans

Credit card loan to buy a car. Credit card loans to buy a car is a credit card installment business launched by the bank. The credit limit that cardholders can apply for is generally 20,000-200,000; the installment has 12 months, 24 months, and 36 months; the credit installment does not have a loan interest rate, the bank only charges the handling fee, and the procedures for different phases are Rates vary. Model car prices are limited, but most commonly used models are available.

Credit card shopping in installments. Shopping mall staging is one of the credit card consumer credit services. When the credit Card Holder makes a purchase, the cardholder can choose to divide the total price of the purchased goods or services into three periods, six periods, 12 periods, or 24 periods. The number (month) is paid in installments. When the cardholder chooses to go to the bank's special instalment storefront, the instalment payment is completed by specifying the POS machine.

Credit card online shopping installment payment. When it comes to how credit card loans are used, online shopping installment payments are also one of the bank credit card consumer credit services. The bank provides an online payment installment settlement platform for credit card holders. Currently, only some banks have opened this service. Before the cardholder can apply for online payment in installments, please log in to the credit card online bank, open the online payment function and adjust the online payment limit to ensure that the online payment limit is greater than the purchased product.

Credit card home improvement installment payment. The credit limit that the cardholder can apply for is generally not more than 200,000. The credit card home improvement loan installment payment does not need to pay the bank loan interest, but it is subject to a one-time handling fee. Handling fee = installment amount * cardholder fee rate (the fee is charged to the first month's bill after the purchase of the installment). The bank's handling fee rate is different.

This is an introduction to how credit card loans are used. In addition to these, there are other credit card loans, such as phone shopping installments. The cardholder can choose one-time full payment and installment payment of the credit card. For the latter, the average price of the goods or services purchased can be divided into several periods (months), and each period (month) is paid in time. Repay credit card payments.

Credit card loans are different from credit loans?

The carrier is different. It is not difficult to see from a literal point of view that a credit card loan relies on a credit card platform to carry out credit card staging or cash pre-borrowing business; while a credit loan is attached to the borrower’s qualifications and the loan funds are issued.

The loan amount is different. Regardless of how credit card loans are used, many people's credit card quotas are difficult to break through the 20,000-yuan mark. Some even can't get rid of the 4-character "magic". If you want to borrow travel, buy a car, and decorate, it seems to be somewhat stretched. It is. In contrast, credit loans appear to be generous, and the amount is more than 10 times the personal monthly income. If you have a monthly income of more than 2,000 yuan, the credit line can easily exceed the credit card.

The loan term is different. In general, credit card installments are mainly short-term, and the longest number is only 24, which is 2 years. The credit loan has a long-distance running route with a maximum duration of 5 years.

The cost of funds is different. Regarding the use of credit card loans, in terms of cost of capital, the credit card is selected for 12 months, the handling fee is roughly 7.2%, and the credit loan is in the range of 7%-22%. Obviously, the capital cost of credit loans has almost no advantage. But this is not the case. In fact, credit card staging is a big deal in terms of calculation methods, which confuses consumers.

The prepayment rules are different. In addition to the practice of doing things in the calculation method, credit card staging also likes to make a fuss on early repayment. Specifically, in the face of customers who pay in advance, the cardholders will always be as close as possible, but the extra fees will not be refunded. In contrast, the rules and regulations of credit loans appear to be the same, and there are many. Under the premise of allowing early repayment, the remaining interest can be waived, and only a part of the liquidated damages can be paid.

The above is the difference between credit card loans and credit loans. Although the two are only one word, the difference is big. The above five different points are enough to explain. Even if the credit card loan is used clearly and the credit card application is approved, the bank will transfer some or all of the credit card to the debit card and repay it according to the bank's previously agreed repayment period. But it is necessary to distinguish between credit card loans and credit loans.