China Naming Network - Almanac query - How to treat this kind of overdraft credit card consumption?

How to treat this kind of overdraft credit card consumption?

Credit cards, flower buds, JD.COM IOUs and other products are all given a certain amount every month according to the cardholder's economic ability and credit situation. The monthly quota is consumed in advance, and the repayment is unified at the beginning or end of the month.

What are the advantages and disadvantages of this behavior?

Let's talk about benefits first.

First, it can help you relieve some cash flow pressure.

For example, you spent 500 yuan more this month because of some worldly wisdom. Since I have a fixed income, I don't have to worry about the repayment pressure brought by overdraft in 500 yuan. At this time, you can enjoy the convenience brought by credit card.

Second, it can help you accumulate a good credit record.

If you can repay in time every month like Alipay, you will improve the corresponding sesame credit value according to your good performance ability. Sesame can enjoy more privileges after its credit value is improved.

Let's talk about the shortcomings.

First, develop the habit of spending in advance.

If you are used to using credit cards, you will only see the increase in debt figures, and the feeling of being short of money is not strong enough, then the sense of restraint in consumption will be weakened, which will increase your consumption expenditure invisibly. At this point, it is not as convenient for people with weak self-discipline to use credit cards as savings cards.

Second, failure to perform the contract will affect the credit status.

The benefits brought by credit cards are all based on timely repayment. If you overspend, you can't pay your debts, or you forget to pay them, which is linked to your own credit history in the bank. It may be affected when applying for loans such as mortgage and car loan in the future.