Many friends may have had this situation: when they were still credit card, they were tight, and they could not get so much liquidity repayment at the moment. They only had the minimum repayment or installment, and it was very painful to pay interest to the bank.
So a new choice comes out, there is a platform to do such a business, to help you on behalf of the credit card, it is said that the interest rate is lower and more flexible. Today, let's talk about it, credit card repayment should not rely on such a platform, it is not worthwhile to do so.
Is credit card compensation cost-effective?
1. What is the operation of "credit card replacement"?
Some credit card so-called "repayment" platforms in the market mainly use the "balance compensation" method. In short, it is borrowing and repaying card debt.
When we swipe a credit card, it is equivalent to borrowing money from the bank first, and then returning the money to the bank when repaying:
And if you choose to compensate, the platform will help you return the money to the bank and restore the credit limit, but at the same time you will owe the platform a small loan.
You can choose to pay back the platform by means of installment repayment, and you become such a relationship:
In order to attract you, many platforms will claim that the interest rate is lower than the bank's minimum repayment interest or installment fee, and provide more flexible installment options.
2. Is the “balance compensation” interest rate really advantageous?
We try to compare a product with a credit card:
This platform claims to have an interest rate advantage. If it is used for surrogate, it will be repaid in six installments. The annualized interest rate is 11.03%. Compared with the annual interest rate of 18.25% of the credit card minimum repayment, it has certain advantages. .
However, taking 20,000 arrears as an example, the platform will be repaid in 6 months, and the repayment amount of each phase of the 6 issues is 3,450.59 yuan;
The credit card of China Merchants Bank, also in the case of 6 months instalment repayment, the amount of repayment in each period is 3,843.33 yuan, in fact, the difference is not big.
3. Different platforms, the interest rate difference is very large
But be aware that if you have this need, don't blindly believe that the advertising says low rates, you can try to calculate the actual situation.
Because the interest rate difference between platforms is sometimes very large, even we will find that the actual interest rate of some platforms is higher than the interest rate of credit cards. If we really need it, we can check it out by ourselves.
In the same amount and period of time, you can try to compare the platform and credit card installment interface separately; if the credit card App or website does not provide the installment trial service, you can also search the “credit card installment calculator” online, enter The relevant information can be calculated.
Other platforms do not disclose specific interest rates, but it is said to discount the rates of quality users, but the evaluation process and standards are not open, so it is difficult to say how many people can have this treatment, if you want to get very low interest rates, It is likely to be disappointed.
Pay more attention to personal information security than interest rates
When screening such platforms, it is important to pay attention to which channel the platform will use to check your credit status.
Credit card “balance compensation” is actually a small loan business. Therefore, we will find that when providing services to everyone, these platforms will also need some information to ensure that you have the corresponding repayment ability.
For example, some platforms will need your CPF or social security information, or you can check your credit history multiple times through other channels.
If you have a large loan demand such as mortgages recently, you should pay attention to whether you will be notified by the platform. If there are too many inquiries in the short-term report of the credit report, the bank may think that you are short of money and affect the approval.
In addition, if you encounter these two situations in the process, it is strongly recommended not to use this platform, which is too risky for our information and property security:
1. Request credit card CVV code + SMS verification code
Some illegal platforms may ask you for more information, and then send you a text message asking for a verification code to try to master your card directly.
Don't give your credit card CVV code, usually three/four digits at the end of your credit card signature column; there is a card number + CVV code + SMS verification code, you can steal your card in some channels.
2. "Cash out" repayment
If you don't use the "balance compensation" method, but introduce the "cash-out" approach to help you solve the problem, this should be paid special attention.
Some companies use cash to pay for your debts. After the amount is restored, you can “snap” the cash on the card by brushing the POS machine and other false purchases. You will be charged some fees during the process.
This kind of behavior is not to withdraw cash through normal legal procedures, but to take the credit limit of the card in cash by other means, while not paying the bank withdrawal fee, called "cash out."
Some people will use this method, and continue to delay, even with the A card to raise the B card, I feel that the money can be procrastinated backwards is really good, in fact, this is an illegal act.
This method is often implemented by a POS machine, which is easily recognized by banks, derated, disabled cards, and even legally held. So don't use the cashout method to solve the problem.
Can we use the return platform?
If you have money to pay back and you are a little tight, do you want to choose the way to return?
1. Pay attention to your debt ratio
First of all, Xiao Qiduo said that no matter which form of staging is a double-edged sword, it brings convenience, and too many people fall into the trap of heavy debt.
Therefore, it is best for the small partners to ensure that their monthly loan repayments should not exceed 50% of the income, so as not to have a big impact on their lives.
2. Solve problems through safer channels
Judging from the current interest rate on the market, there is no particularly big advantage. It is not recommended that you increase the difficulty of identifying your platform in unnecessary situations, and you must always worry if there will be problems.
Now many banks will also provide some micro-credit services, and the interest rate will be lower. If you realize that there will be a large amount of expenses that are difficult to pay off in the short-term before the card is swiped, you can consider the bank's micro-loan.
3. Choose a compensation platform to be cautious
If it is really urgent, you can also consider using credit card balance compensation. In the process of selection, many factors should also be considered.
In addition to the speed of lending, interest rates, etc. that everyone is very concerned about, since the current supervision is not very strict on this piece, we must pay attention to the organization's reliability, and query the company's corporate information, such as business information, shareholder information, and executives. Is there a background in risk control?
Second, pay attention to protect your information security and check your credit information regularly.
Finally, be sure to remember to pay back in time. Although this kind of behavior is called "using the money of the day after tomorrow and the money of tomorrow", but this money is still our debt, we also need to repay. If the payment is not repaid, there will be a corresponding overdue fee, or even affect the credit history record, it will not be worth the loss.
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