You need to apply for a credit card with a certain amount of money and first freeze the money in the bank. Can I apply for this new deposit credit card launched by Guangfa Bank ?
Recently, Guangfa Bank issued an announcement on its official website stating that it plans to officially launch its deposit credit card business from November 24. According to him, the total credit card limit does not exceed the deposit limit, and the deposit will be stopped until the card is refunded. During the freezing period, the deposit is paid to the cardholder at current interest.
Regarding the launch of this new business, some users expressed doubts: Why do you still need to apply for a credit card if you have frozen deposits? The deposits are frozen for a long time. Why only current interest is paid?
Is there a market for credit cards?
On October 10, the official website of Guangfa Bank publicly released the personal credit card service agreement for deposit freezing of Guangfa Bank, which is called GF Credit Card's more convenient and better financial services. It plans to launch the personal credit card business "e-card" through deposit freezing.
According to the explanation of the GF announcement agreement, the cardholder needs to deposit a certain amount of money in reserve according to the requirements of GF Bank. The total amount of a credit card is not higher than the frozen deposit amount submitted by the cardholder, and deposit credit card users shall not use it exceeds the limit.
If the user submits a frozen deposit of 50,000 yuan at Guangfa Bank, the credit limit of the Guangfa Bank credit card he finally obtained is less than 50,000 yuan.
In addition, Guangfa Bank also provided detailed discounts to cardholders for the use of reserve funds. The frozen deposit is valid continuously from the date of issuance of the credit card to the date of cancellation of the credit card. That is to say, during use, the frozen margin cannot be withdrawn or transferred unless approved by GF. If part of the deposit is required, the remaining deposit shall not be lower than the amount in the card or the accumulated debts are arrears.
GF Bank stipulates that cardholders have the right to deduct margin during the credit card use period, including but not limited to principal (such as overdraft consumption, overdraft withdrawal, etc.), interest, penalty interest, compound interest, handling fees, annual fees, liquidated damages, compensation for damages and all expenses to realize the creditor's rights. At the same time, when the cardholder uses deposits to repay the debt, the credit card limit will also be reduced simultaneously.
For the deposit interest that users care about, GF stated that it will pay to cardholders at the announced deposit interest rate.
reporter found that compared with credit cards, whether margin credit cards are attractive needs to be questioned because of the issue of fund efficiency.
"If I want to borrow money to save money first, what is the meaning of a credit card?" A credit card user who has been more than 4 years old said: "The funds have been locked for a long time, but only the current interest rate?"
"If I have money, why do I need to use deposits to apply for a credit card?" said another senior credit card user.
reporter contacted Guangfa Bank’s credit card public relations department to understand the situation. As of press time, no reply was received.
Who can apply for a GDB deposit credit card?
reporter learned that in recent years, due to various factors, margin credit card-related business has long been closed by many banks.
CGB credit card customer service told reporters: The deposit freezing of personal credit card business is a new business launched by CGB. Currently, only certain customers of CGB can receive SMS invitations to apply. After the data review is passed, customers can open a CGB Class II account online and apply for the business after the deposit is frozen.
What kind of customers can receive invitations?
Special invited customers need to be verified by the system. GF’s customer service staff told reporters that in general, as long as users meet the conditions, they can apply for a credit card on the official website. However, for some users who are not personal credit friendly, in this case, they will apply for a credit card and pay a deposit.
GF customer service staff emphasized that, however, these users still need to receive an exclusive SMS invitation link from GF Credit Card before they can apply.
risk control is beneficial to low-credit users to apply in advance.
In recent years, the number of credit card issuances in most small and medium-sized banks has soared, but the industry consensus is that the period of rapid progress in credit cards has passed and has entered the stock period. Credit card penetration rate continues to increase, but a series of industry problems such as malicious overdue and cash out have also surfaced.
A bank credit card industry insider told reporters that the growth of credit card users dividend has faded, forcing the market to further explore potential consumer groups and increase efforts to cultivate and work hard. Especially in July this year, the China Banking Regulatory Commission issued the "Notice on Further Promoting the Standardized and Healthy Development of Credit Card Business", requiring banking financial institutions not to use the number of cards issued and the number of customers as single or main assessment indicators, and banking financial institutions with a long-term sleep card rate exceeding 20% shall not issue new cards.
This also means that banks that issue more cards in the early stage will face greater pressure to activate sleeping credit cards and clean up zombie credit cards. Through the margin model, products like Guangfa Bank can not only control bad debt risks in advance, but also allow users to increase the frequency of credit card usage, increase the activity of new card openings, and increase the probability of users using installments.
insiders said that from the analysis of the deposit credit card threshold set by GF Bank, reopening GF credit card can effectively alleviate the financial pressure of users to a certain extent, and at the same time, through good subsequent use records, credit reporting can be revitalized.
The so-called credit reporting user means that the credit reporting looks messy. The most important thing is that many people apply for loans and cards, which leads to too many credit reporting checks and is mistaken for being extremely short of money by banks, which increases risk control and makes it difficult to apply.
Why did credit cards return to the world?
traces the source of credit cards, and the credit card credit model through margin guarantee has existed since the beginning of the business development. Because the personal credit reporting system was not perfect at that time, if users want to apply for credit card business, they must have guaranteed .
"In order to prevent users from taking risks after overdrafting their credit cards, the bank requires the applicant to provide guarantees to the bank. The guarantee at that time was divided into three forms: unit guarantee, natural person guarantee and self-owned fund guarantee. Guangfa Bank's savings card was one of the methods at that time." Zheng Dong, a senior credit card researcher, said that after the millennium, the personal credit system has been improved day by day, and gradually exited the stage of history by guaranteeing the application for credit cards.
Twenty years later, with various systems becoming increasingly perfect, why does the margin credit card method come back?
Zheng Dong said that the emergence of credit card margin business was driven by the decline in demand for the credit card market. In the past three years, due to the impact of the epidemic, the bank's credit card business has also suffered a serious market impact, and its business philosophy and model are facing adjustments. Especially after the implementation of the new credit card supervision regulations, card issuing banks have become deeply involved in it from "redirecting new products and lightly retaining" to strengthening existing customers. Only by in-depth research on new policies and regulations in the industry can we occupy an advantageous position in the future development of credit card business.
"This new credit card business launched by Guangfa Bank may also be based on this consideration." Zheng Dong speculated that in the era of "thousands of people and kilocards" and diversified consumption, the boundaries of credit card products are always extended infinitely. The launch of GF Margin Credit Card has further segmented its customer base and used it for people with small demands.
