As indicated by the data of the central bank, by the end of the second quarter of 2013, the credit cards issued across China totaled 364 million pieces, a YoY increase of 20.33%; the total credit line reached RMB 3.98 trillion, up by 32.93% YoY. With the popularization of credit card, its importance as a payment tool becomes increasingly prominent, and overdraft consumption becomes a part of many people's lives. However, how to avoid excessive consumption with credit cards, enlarge the benefits to use credit cards and save troubles in making repayment become issues that customers should learn urgently. Recently, the reporter interviewed an officer in the Credit Card Center of Industrial Bank (IB), hoping that the expert may give you some advice.
Entrench yourself step by step to define consumption clearly
Just starting his career in a trade company, Li has applied credit cards from several banks. It is very convenient to use them either to go shopping or make payment for internet shopping. Nonetheless, he has to face the high spending each month. Upon the coming of repayment deadline, he always finds that he can hardly repay all the money that he has spent, and even has to rob Peter to pay Paul. It's really hard to cope with the situation. Now, there are many young people leading a life like Li. They know little of their accounts, have no plan for their consumption, and are easy to have impulsive and blind consumptions. As a result, they often fall into dilemma of “being unable to make ends meet”. Then, how should we avoid excessive consumption with credit cards, and fully manage our financial situation?
IB's expert points out: As a non-cash payment tool, for customers, credit card attenuates the sense of restriction arising from “decrease in cash”. Therefore, it is easy for cardholders to give loose to their own “shopping desire”, thus resulting in excessive consumption. The phenomenon is prevailing among the young people. In this regard, cardholders are recommended first to cultivate a good habit to keep accounts on consumption, or log on the internet banking system to check expenditure on frequently so that they may learn the overdraft situation all the time, be clear about their financial situation and make a reasonable plan for various expenditure within the limits of their income. Second, cardholders may activate the function of electronic account statement. Replacing the paper statement with electronic statement, cardholders can not only avoid energy consumption and pollution during the process of printing and mailing the paper statement, but also have a clear knowledge about their consumptions within a period of time and track the consumption behavior at a specific time by making use of the features of electronic statement that is easy to keep and inquire. In this way, they can control their total consumption and make reasonable consumption. Third, to activate the function of real-time SMS notification on credit card transaction, a cardholder can not only learn information on your own consumption and changes in your account, but also discover a fraudulent use at the earliest possible time once encountering any risk of fraudulence, so as to prevent further losses. Upon the mention of “SMS notification”, the reporter learns that IB has offer the SMS notification upon transaction, free of charge, for holders of gold credit cards and above to help them to learn their consumptions in a dynamic way. Fourth, cardholders should not pursue a high credit line blindly. They are expected to have a full understanding to their consumption and repayment capacities so as to avoid excessive consumption, which may lead to difficulties in repayment.
Watch every penny to make ends meet and enjoy all preferential activities available
Different credit card products have varied design concepts, so they have different stresses on preferential rights and benefits. To fully make use of the characteristic rights and benefits of different credit cards, card holders may “make a little money go a long way” while enjoying the card-swiping fun. In this way, credit cards can really serve their proper purposes. Then, how can we fully learn and timely enjoy the preferential rights and benefits of various credit cards that we hold?
Advice of IB's expert: On the one hand, cardholders should choose suitable credit cards according to their actual needs and day-to-day consumption preference. For instance, the “XING” credit card of IB is developed specifically for “business travelers”. Besides enjoying convenient and secure financial payment, cardholders may also experience a range of exclusive benefits, including free limo pickup at/to the airport both at home and abroad, free VIP service at both domestic and oversea airports, value-added points rewarded for air miles, and fixed-amount compensation protection for flight delay, etc. Therefore, consumers who are often on business travel may choose credit cards of this type specially. On the other hand, with the coming of the age of “We the Media”, cardholders may give more attention to the Weibo (microblog) and WeChat (micro-message) of every bank as various promotion and preference information are often published at the earliest possible time in similar channels. To learn such information in a timely manner, no doubt you can manage your shopping and consumption in a more cost-effective manner. In addition, to log on and browse through official websites of banks is also a good way to learn the rights and benefits of credit cards and fully learn the information on promotion and preferential treatment. If a customer needs to check more detailed credit card rules or rates for interest rates and fees, it is the most desired way to choose the official websites of banks.
Without the need to snatch a little leisure from a busy life, a “lazy person” can also make repayment easily
What often troubles the backbone force of credit card consumption – the white-collar group is that they are very busy and can not find time to arrange repayment, or cannot find appropriate approach of repayment. In this regard, Miss Li working for a jewelry design company, a credit card consumption expert, recommends the “lazy” secret enthusiastically: “It's very simple. I bundle my IB credit card with my IB wealth management card, activate the automatic repayment function, and set “full repayment”. In this way, upon each date of repayment, IB will automatically deduct the corresponding amount from my wealth management card for repayment of my credit card. Thus, as long as I have enough money in my wealth management card for ‘automatic deduction', I do not worry about the repayment of my credit card any more!”
Reminder of IB's expert: It is very important to choose a method of repayment suitable to oneself. Cardholders are recommended to get familiar with two to three methods of repayment at the same time. In case of any accident, they can deal with the problem flexibly so as to ensure timely repayment. If one holds credit cards issued by more than one issuers, it is a good choice to activate the “automatic deduction”.