Written in advance: The construction of a knowledge system is crucial
In the hands of different people, credit cards serve different purposes. Some use them to cash out for business, some redeem points for various loyalty benefits, and others enjoy VIP travel services and insurance...
When we try to take the perspective of an observer to filter and judge certain cards, we need a more comprehensive knowledge system, which helps us identify the true quality characteristics of cards.
For example, one card can be used to redeem Air China miles, while another can redeem China Southern miles. On the surface, they seem equally matched, but in reality, 20,000 Air China miles are not enough for a round trip between Beijing and Shanghai, while 20,000 China Southern miles can cover a round trip from Beijing to Chongqing.
Another example is that Hilton almost has a points promotion every quarter, allowing stays at high-end hotels at very reasonable prices. If a card can redeem Hilton points, it should theoretically be a plus. However, if you do not have enough understanding of Hilton's loyalty program, you may not be able to take advantage of the card's benefits.
In fact, becoming an expert in any field requires a strong and complete knowledge system to support it. However, the process of building a knowledge system is not easy. There is too much related to credit cards, including but not limited to airline loyalty programs, hotel loyalty programs, online payments, overseas shopping, currency exchange... I myself cannot claim to fully understand all the connections. Everyone is welcome to contribute from more perspectives.
Recommendations for Entry-Level Cards
For entry-level cards, there is no need to worry about annual fees. So just apply with your eyes closed.
Bank of Communications Walmart Card
The points redemption ratio is equivalent to a 1% cashback;
Bank of Communications' "Most Popular Friday" event offers 5% cashback at supermarkets and gas stations;
You can apply directly on the Bank of Communications website.
Detailed introduction (follow the WeChat account SeniorPlayer and reply with 3 to obtain):
CITIC IHG Co-branded (Gold) Card
Recently, there has been a big promotion, where spending a certain amount gives 90,000 points, which can be redeemed for excellent hotels.
Normal spending automatically converts to IHG accounts at a ratio of 18:1, and it is recommended for those who can take advantage of it. You can also apply directly on the CITIC website.
Detailed introduction (follow the WeChat account SeniorPlayer and reply with 172 to obtain):
China Merchants Bank GQ Card
For cards below the platinum level at China Merchants Bank, there is nothing particularly worth having. The benefit of the GQ card is that it offers a free subscription to the iPad version of GQ magazine. This card is limited to male applicants.
Detailed introduction (follow the WeChat account SeniorPlayer and reply with 93 to obtain):
In addition, the all-currency card from China Merchants Bank, CITIC's Huitianfu card, Bank of China’s Air China Co-branded Gold Card (an old card), various cards from Huaxia (basically indistinguishable), Minsheng's Women's Flower Card, and the in card can also be considered.
The all-currency card from China Merchants Bank is also worth applying for.
Recommendations for Mid-Range Cards
Mid-range cards are generally those with easily waived (or very cheap) annual fees, and the application threshold is not high, making them worth having.
CITIC i Platinum Card
Offers travel benefits, CITIC 9 share redemption, and 9 yuan movie events. Additionally, this card allows you to get a VIP number directly from CITIC, so you can skip the line when handling overseas business.
Combining high-end and practicality, its advertising slogan is also interesting: "The first platinum card in life."
Official website introduction: Web link
Bank of China EMV Card
No annual fee, no currency conversion fee, and has a chip. Currently, many duty-free shops abroad and several DFS in the U.S. have generous cashback promotions.
After binding to China Southern, it converts miles at a ratio of 14:1, and double points abroad, which is equivalent to a 7:1 conversion.
A similar option is the Bank of China Air China Co-branded Platinum Card.
Detailed introduction (follow the WeChat account SeniorPlayer and reply with 36, 143 to obtain):
Xingye Hang You Bai
Airport pick-up and drop-off in many cities worldwide (including domestic), with top-notch cars under the ABB brand for international trips, twice a year; domestically, it's generally at the Passat level, four times a year. The annual fee of 900 yuan is easy to earn back.
Detailed introduction (follow the WeChat account SeniorPlayer and reply with 22 to obtain):
Recommendations for High-End Cards
High-end cards have high application thresholds. Annual fees may be waived, but they also require considerable spending.
ICBC Mastercard Platinum Card
Commonly referred to as the "Black Cabbage." Unlimited access to airport lounges worldwide, using the provided PP card abroad, and generally using the bank's platinum card domestically. ICBC has the most partnerships with airports in China, and the quality is also the highest.
Once at Dalian Airport, the staff told me that only ICBC offers a service to send a car to the plane; other banks, including the Longteng card, do not have this service.
This card is not easy to apply for—if you do not have a double six-star rating at ICBC, they won't even accept your application form.
How to achieve a double six-star rating? Buy more wealth management products, trade paper gold (don't blame me if you lose money), and then wait a long time (usually after passing through one June or December)... Congratulations, you have achieved ICBC's double six-star rating.
Detailed introduction (follow the WeChat account SeniorPlayer and reply with 12 to obtain):
China Merchants Bank American Express Platinum Card
The annual fee of 3600 yuan is not waived. However, the rewards that can be redeemed with American Express points are numerous and excellent—miles for several foreign airlines, with the best being BA; points for foreign hotel groups like SPG and Hilton. Additionally, the card's FHR benefits are also very high-end.
If you love to travel and want to stay well, consider using the American Express Platinum Card; you will definitely not be disappointed.
The American Express Platinum Card is for those who spend money to buy services that allow them to enjoy life to the fullest.
Detailed introduction (follow the WeChat account SeniorPlayer and reply with 13 to obtain):
FHR introduction and practical operation (follow the WeChat account SeniorPlayer and reply with 168 to obtain):
Citibank Black Card (Privilege Card)
The annual fee for Citibank's black card is 2000 yuan. It is also connected to some foreign airlines and hotel group loyalty programs.
Currently, overseas spending earns double points, with a mileage redemption ratio of 12:1. It is worth trying.
It is worth mentioning that the threshold for the Citibank black card is not as high as imagined. According to Citibank's official statement, a monthly salary of 6800 yuan is enough to apply for the black card. Everyone can feel it.
Detailed introduction (follow the WeChat account SeniorPlayer and reply with 146 to obtain):
Bank of Communications Platinum Card
The Bank of Communications Platinum Card is also known as the "White Qilin." The annual fee is 1000 yuan, and 250,000 points can be redeemed.
The Bank of Communications is generous in that each card can have 3 free supplementary cards, each of which comes with a PP card for access to global airport lounges, limited to 6 uses per year.
This can easily outshine ICBC's black cabbage and China Merchants Bank's American Express Platinum (supplementary cards do not have PP). So, if you need a more enjoyable travel experience, paying the 1000 yuan annual fee is not a big deal. Coupled with the aforementioned Xingye Hang You Bai's pick-up service, travel becomes perfect.
Detailed introduction (follow the WeChat account SeniorPlayer and reply with 32 to obtain):
China Merchants Bank Classic Platinum Card
The benefits of the China Merchants Bank Classic Platinum Card are a subset of the American Express Platinum. Dental cleaning and health check-ups are quite practical, and airport lounge access is limited to 6 times, but that is sufficient for infrequent travelers.
The annual fee is 3600 yuan, and you can use 10,000 points to offset it. Accumulating points with China Merchants Bank is relatively difficult, but spending on your birthday can earn 10 times the points, capped at 10,000. I basically use this day every year to cover the annual fee for the Classic Platinum Card.
Detailed introduction (follow the WeChat account SeniorPlayer and reply with 13 to obtain):
Which Cards Are Not Worth Using
Various government cards, all cards below the platinum level issued by ICBC, all cards from CCB, China Merchants Bank's Ctrip card, all co-branded cards from China Merchants Bank, and China Merchants Bank's platinum installment card (a big pit).
Everyone is welcome to add more.
2. Five Tips for Credit Card Newbies#
I am currently also following a route of fewer but more refined cards. Currently holding:
- ICBC Air China White
- BOC Infinite EMV, BOC Infinite UnionPay Dual-Standard, BOC EMV White, BOC Elite White
- CCB Air China White
- Citibank Blue Card
- China Merchants Bank Master Gold, American Express Gold, Classic White on the way
- The useless Bank of Communications card with an 8k limit for groceries
The next route is: Postal Gold Card, Agricultural Bank of China You Ran White, Huaxia Prestige White, Minsheng Southern Airlines Standard White, and then those shameless banks: CITIC Big White + i White, Guangfa White, Xingye Hang You Bai. Additionally, I have a housing loan with the Shanghai Rural Commercial Bank and plan to try the legendary Agricultural Bank of China World Xin White.
Two bottom lines: Don't accept limits below 50,000, and don't accept anything below platinum (the postal card is an exception, as non-system personnel can only get a gold card at most).
Banks with many card rewards and market activities: Guangfa, China Merchants, CITIC, Bank of Communications.
After reading most of the replies, it seems that there are indeed many wealthy people on Xueqiu, who don't really use credit cards and prefer to pay directly with cash.
For those who enjoy playing cards, I suggest:
- Apply for CCB, Postal, Huaxia, and Citibank cards as soon as possible. Once you have too many cards and accounts, these banks may be reluctant to approve you.
- If your workplace is average and you don't have much bank savings or investments, don't easily challenge ICBC or ABC, as they might give you a 500 limit card.
- BOC is the least principled among the big four banks; if you give them money, they will cater to you. Buy a wealth management product worth hundreds of thousands, and they will give you a platinum card.
- Cards from Bank of Communications have many benefits, but be careful when redeeming, as they can easily bite back.
- Don't bow down for a cup or an umbrella just to open a card; cherish your personal credit report and keep the number of accounts on the central bank's credit report as low as possible (if a single currency UnionPay card meets your needs, don't get a dual-currency card, as dual-currency cards will report two accounts for one card), especially for ICBC multi-currency cards, such as the ICBC World Travel Card, which can report dozens of accounts for one card, making it a credit report killer. Keep CITIC and Bank of Communications limits low; 30,000 is enough, as these two sometimes directly drop a zero from your limit.
3. Q&A to Help You Navigate Credit Cards#
Q: Besides the bank's official website and Feike Tea House, where do big players usually go to get credit card-related information?
A: Subscribe to various airlines' promotional emails.
Q: Which credit card is best for traveling abroad? How to prevent fraud? If fraud occurs, how to minimize losses?
A: Fundamentally, use cards from major banks, as they are easier to dispute. For example, China Merchants, ICBC, and BOC. Specifically, currently, BOC's EMV Platinum Card has many benefits abroad.
Q: Currently, among national commercial banks, except for Minsheng, Xingye, ABC, and Everbright, I already have 9 banks and 14 cards. Should I also apply for one from these 4 banks?
A: If you have a collecting habit, go for it; if not, wait until you find a card you really want before applying, as you won't lose anything.
Q: I already have BOC's UnionPay Platinum Card (with no annual fee during the validity period). I expect zero opportunities to go abroad soon. Is it still necessary to apply for a BOC EMV Platinum Card? If so, should I choose VISA or Master EMV?
A: I think, since it's free during the validity period, why not?
Q: What good tips do big players have for increasing limits? My limit is 30,000-40,000, and I usually spend it all in one or two transactions, paying fixed suppliers. When I ask the bank to increase my limit, they say I need to diversify my spending, which is frustrating.
A: Yes, diversifying spending is good, but mainly you need some high-quality high-end spending. If you swipe your card every day at a shopping mall versus at a supermarket, the bank will definitely treat you differently.
Q: Many merchants' POS machines are coded incorrectly, resulting in no points for card swipes. How should this be handled?
A: Besides calling the bank to complain, there’s not much you can do. The domestic acquiring fee rate is too low, and clever compatriots always find ways around it.
Q: How to cash out credit cards into Yu'ebao?
A: There are ways, but you need to pay attention to details in execution, such as posting fake products on Taobao...
Q: Since I've never applied for a credit card, I want to ask if I can apply for a China Merchants Bank credit card. My ID birth date is 94, I just got a social security card, I earn 10K a month, and I'm an ordinary IT employee with a bachelor's degree. Can I get a credit card? If so, which type is better?
A: I think it's fine. For China Merchants, you can go for a GQ card, and you can also get an all-currency card. Those standard gold cards are not very meaningful.
Q: Excuse me, big player, I have the China Merchants American Express Platinum Card, but I want to know how to get the real American Express Platinum Card?
A: Hmm, "the real American Express Platinum Card," do you mean the one issued directly in the U.S.? Go work in the U.S. and start from the gold card! Or find a wife working in the U.S. to get you a supplementary card...
Q: Big player, which bank's card is more cost-effective for outbound travel?
A: BOC is currently promoting their EMV card, which is quite cost-effective. The EMV Platinum Card has various cashback offers abroad and no currency conversion fees, making it worth considering.
Q: Which card is most suitable for mindless swiping?
A: I think the Bank of Communications Walmart card is quite suitable; it has high point returns and doesn't have the long list of non-point merchants like China Merchants.
Q: Which credit cards can be used to redeem Hilton hotel stays? How to act like a frequent redeemer when redeeming?
A: The China Merchants American Express Platinum and Citibank Black Card can both redeem Hilton points. Recently, Hilton points are also being sold at a discount of 20%, and you can buy points directly on their website. As for redeeming... once you redeem, you'll know; it's very easy.
Q: Hello, I want to ask as a college student without fixed income proof, I want to apply for a credit card for convenience in overseas shopping. What steps can I take to make this easier? I can provide asset proof of nearly 500,000 in a stock account and a property certificate (in my name), with the property valued at around 400,000.
A: It's quite difficult for students to apply for cards now; hurry up and graduate.
Q: Hello big player, there are many cards from various banks now. Which bank offers the best point discounts?
A: Bank of Communications is generous, and CITIC is flexible.
Q: Now that I have too many cards, I hope to get some guidance. Thank you! — CITIC i Platinum Card (no annual fee), CITIC IHG Platinum Card (membership), BOC Great Wall Global Platinum Card (discounts at Hong Kong and Macau merchants, installments, no annual fee), Ping An Car Owner Gold Card (cashback on gas, car wash), China Merchants One Foundation Gold Card (fixed charity) — my main needs: business trips, banquets, online shopping, daily consumption.
A: This number is not too much. It seems your spending is quite strong; you could consider getting a Citibank Black Card, which is cost-effective for redeeming miles and has travel benefits. Additionally, you probably won't use that China Merchants card much...
Q: Which card is practical for swiping in Taiwan?
A: If the timing is uncertain, consider the BOC EMV Platinum Card, which offers double points abroad and 5% cashback at duty-free shops. There are two articles on this topic on the big player’s site; follow SeniorPlayer and reply with 36 and 143 to get them. Additionally, CITIC's Visa brand has a mindless 5% cashback promotion, limited to $100 per month, until next July, and registration is required...
Q: Do you think credit cards will really disappear in the next few years?
A: Why think so much...
Q: Which credit cards are suitable for redeeming airline miles? What should be noted when redeeming miles?
A: It mainly depends on your needs. Among domestic airlines, China Southern is better than Air China for the same number of miles; Cathay Pacific's Asia Miles is also good. So when applying for cards, pay attention to which airline miles the card can redeem. For entry-level cards, consider the Bank of Communications VISA Standard Gold Card (which can redeem Asia Miles), CITIC's American Express Card (3x points), and Guangfa's China Southern co-branded card (the gold card ratio is good, and the platinum card is even better).
4. Personal Experience: Comparison of Credit Card Usage Among ICBC, BOC, CCB, ABC, and China Merchants#
Currently, I have five credit cards: ICBC, BOC, CCB, ABC, and China Merchants, but I feel that two cards are enough, and I applied for them actively.
Through comparison, I feel that ICBC is the most powerful and my favorite to use.
Let’s talk about the advantages of ICBC: ICBC has the lowest installment fees, and for some overdue payments, if you accidentally forget to repay in full, they only charge interest on the overdue amount. For small amounts below 1000 yuan, you can avoid entering a password, which I think is the safest way to minimize password usage, as small purchases are the main consumption method. Every transaction receives an SMS notification, while China Merchants seems to have no notifications for amounts under 300 yuan.
If you need small parts at home, you usually check if you can exchange them for points. However, many channels no longer offer points for consumption, so points have become almost negligible across the board. Therefore, I prefer the ICBC card that helps me save money.
You Should Know About China Merchants Bank's Deceptive Policies#
The first credit card of the big player was from China Merchants, and I have previously recommended China Merchants cards.
I have used China Merchants cards for 9 years, and I see them becoming increasingly cunning. Today, I’m opening a thread to publicly complain.
If you resonate with this, feel free to share it with more of your friends. Perhaps it will catch China Merchants' attention and change some of their bizarre policies.
Swipe 20 yuan = 1 point, and the excess does not accumulate.
The policy of 20 yuan = 1 point is understandable, as the redemption ratio will also adjust accordingly. However, the excess not accumulating means that if you swipe 39 yuan, you only get 1 point. Is this not a blatant exploitation?
For those who just realized this, you might choose not to swipe your China Merchants card the next time you buy a 36 yuan Starbucks coffee.
Points redeemable for miles? No talk without a platinum card.
When you hear the big player say that points can be exchanged for miles, and miles can be exchanged for free tickets, and free tickets can take you around the world, doesn't it sound amazing?
However, if your points are with China Merchants, unless you have a platinum card, you cannot redeem them.
You ask, if I can't redeem miles, what can I do with the points?
You can swipe for DQ or exchange for gifts, but the big player thinks that not being able to redeem miles essentially makes the card useless.
Of course, China Merchants' airline co-branded cards can automatically redeem miles. However, from the redemption ratio perspective, none of China Merchants' airline co-branded cards are worth having.
Positive example:
Minsheng Bank is quite good. The gold card can redeem miles at a ratio of 18:1, and the platinum card is 15:1, with even better ratios for luxury platinum and diamond platinum cards.
Damn it, with a platinum card, why can't I redeem miles?
Well, it was said long ago that there are many products under China Merchants' platinum card, and they are mixed.
If you apply for the exquisite platinum card, you cannot redeem miles;
If you apply for the most pitiful installment platinum card, you cannot redeem miles in the first year;
Only the classic platinum card and the American Express platinum card can redeem miles. To add, the classic platinum card can only redeem 50,000 miles per year... which is simply not enough for the big player.
No points for gas purchases!
Yes, starting from a certain point in 2013, swiping the China Merchants card for gas no longer earns points. If you have a car and pay for gas, it’s better to switch to another bank.
Industry model:
The Transportation Bank cards are good; they not only give points but also have the "Most Popular Friday" event, with 5% cashback on Fridays, and 10% cashback for platinum cards. Swiping for plane tickets? Still no points...
Such a high-end expense as plane tickets should earn some points. The fact is, China Merchants has blocked the MCC 4511. Unless you go to Travel Easy to buy tickets, you definitely won't earn points.
Next time you buy a plane ticket, either go to Travel Easy or use another card.
2.45 million "non-point-earning merchants" — what's going on? Do you think only gas and plane tickets don't earn points?
On the China Merchants website, there has always been a list of "non-point-earning merchants." The big player downloaded it while writing this article and found that there are a total of 2,457,372 "non-point" merchants...
If someone can memorize this list, they would definitely win the title of the strongest brain!
High-end benefits are issued per household.
If you hold the China Merchants Classic Platinum Card, you can enjoy hotel benefits of 300 + 100, but only 4 times a year.
If you also get an American Express Platinum card, even if you are willing to pay the annual fee for both cards, sorry, you still only get 4 benefits a year.
If you also obtain an Infinite card, an American Express Black card, and are willing to pay the annual fees for all four cards, unfortunately, you still can only use the benefits 4 times a year...
Similarly, the 10x points on your birthday benefit is also allocated per household. Even if you have 4 cards, you can only earn a maximum of 10,000 points on your birthday. The actuaries hired by China Merchants are quite good.
Recommending new users? Only three opportunities per month... Many friends have commented that when the big player recommends China Merchants cards, they can let everyone fill in your name as the referrer.
At such times, the big player can't help but curl their lips in front of the screen: Do you know that China Merchants only gives three referral rewards a month, and they are points... there is really no motivation to get them...
Industry model:
Here we go again with the Bank of Communications. The Bank of Communications is very generous with referral rewards. If you refer 3 people in Q2, you get an air purifier, and for each additional person, you get 50 yuan...
I’ll stop the complaints here for today. If anyone has other complaints, feel free to leave a message for the big player; maybe we can produce a second issue.
Most of the points in this article are also pitfalls to avoid when using China Merchants cards. So, everyone is welcome to share widely so that more people know about these.
6. Smart Use of Credit Cards: 340 Yuan First-Class Ticket, Compensation of 500 Yuan for Delay#
During the Asiana Airlines San Francisco incident and the disappearance of Malaysia Airlines, the big player had previously shared knowledge about travel insurance twice. It mentioned a key point:
You don't have to buy insurance; just use the right credit card to pay.
On May 11, at Shenzhen Airport, the flight I took was delayed by 8 hours, and I happened to use the delay insurance. So I organized my compensation experience to share with everyone. This article is worth saving for future reference.
{Claims Process}
Step 1: Confirm the delay and initiate a claim.
Different credit cards have different standards for delay insurance. For example, CITIC i Platinum offers 1000 yuan compensation for a 2-hour delay when purchasing tickets through designated channels.
I used the China Merchants Platinum Card, which has the advantage of not restricting the ticket purchase channel, and offers at least 500 yuan for a 4-hour delay. Once the flight delay reaches the specified standard, just call the bank's customer service.
The bank will transfer the call to the corresponding insurance company. The insurance company's customer service will tell you what materials to collect for the claim.
Step 2: Gather claim materials.
Generally, the materials required for delay insurance claims include at least the following:
- Delay proof
- Boarding pass
- Itinerary (not mandatory)
When a flight is delayed, you can obtain a delay proof from the airline's counter. This document is the core of the claim, so make sure to get it. The itinerary can be obtained at the airline's ticketing counter. The boarding pass is self-explanatory.
Step 3: Submit claim materials.
Within a few working days, the insurance company will send you an email listing the materials you need to submit. Just scan all the materials and send them over, and then wait to receive your money. Some insurance companies may require you to mail the original documents, so just follow their instructions.
I purchased the ticket with the China Merchants Platinum Card, and from the flight delay to receiving the insurance compensation, it took 12 days. During this time, I was too busy and delayed submitting materials for 3-4 days.
Interestingly, this round-trip first-class ticket from Beijing to Shenzhen only cost 340 yuan, yet I received 500 yuan in compensation for the delay, yielding a return on investment of 47%.
How did I get the 340 yuan ticket? Follow the big player on WeChat (SeniorPlayer) and reply with 156 to see a step-by-step guide on how to redeem (cheat) for a free ticket with Southern Airlines.
{Advanced Play}
In fact, when a flight is delayed, you can receive even more compensation.
Taking the China Merchants American Express Platinum Card as an example, the travel inconvenience insurance it provides can go up to 4000 yuan, while the 500 yuan is just a fixed allowance.
Imagine if the flight is canceled and you have to stay in Shenzhen. You would need to take a taxi to the hotel, right? You would have to pay for the hotel, right? If you run out of underwear, you need to buy some, right? You would need to eat at the hotel, right? ... All of these expenses can be reimbursed, just keep all the receipts, and the total should not exceed 4000 yuan. Staying one more night at the Four Seasons Hotel would be effortless.
If you use the China Merchants Classic Platinum Card, the cap is 2000 yuan. You can still enjoy it.
{Optional Cards}
This article may look like an advertisement for the China Merchants Platinum Card, but in fact, many cards come with related insurance. You don't even need a platinum card. For example, the aforementioned CITIC i Platinum, all banks' airline co-branded cards, and the China Merchants all-currency card.
Different cards come with different insurance clauses, which also means different coverage amounts, so everyone can choose the one that best suits them for buying tickets.
{A Question}
Some friends may ask: That Beijing-Shenzhen ticket was redeemed with miles; can I still enjoy delay insurance? I can't give a definitive answer. However, I read through the insurance terms for the travel inconvenience insurance on the China Merchants card, and there is no exclusion for reward tickets.
So, just keep it in mind.
If one day the big player uses airline accident insurance, they probably won't be able to share their experience with everyone...
8. My Regretful Experience with "Quick Payment"#
Recently, I wanted to transfer money (exactly 1000 yuan) from a Postal Savings Bank debit card to a China Merchants debit card, but I hadn't activated online banking and didn't want to withdraw cash since the cross-bank withdrawal incurs fees and I couldn't withdraw the exact amount. I wondered if I could use Alipay or Tenpay to transfer the money in and then withdraw it to another bank card.
Entering Tenpay, I selected "Recharge," chose Postal Savings, and it automatically led me to activate "Quick Payment," indicating that I could pay without activating online banking. I simply filled in my bank card number and my phone number (my ID number was automatically filled in), and immediately succeeded in activating it and transferring the money into Tenpay. Then I withdrew it, selecting China Merchants, and the withdrawal was successful.
I was just withdrawing money; if I used Tenpay and Alipay's quick payment to recharge and then used the transfer function to send money to others, it would be very simple.
I was surprised that I could transfer money without activating online banking, without inserting a key, and without entering a withdrawal password. It's so convenient! But now I feel very regretful.
Because all third-party payment companies like Alipay and Tenpay allow setting and modifying passwords without going to the bank, just through the internet, theoretically, as long as someone has my SIM card and my identity and account information, they can obtain my Alipay login and payment password and easily transfer my money out through quick payment (without needing bank passwords and U-shield).
If you have never registered with Alipay, Tenpay, or other third-party payment companies that support quick payment, don't think you are safe; you are actually in great danger! Anyone who gets your phone, ID, and account information can easily register for you and transfer your money without needing your bank card password, including savings books. They don't even need to go through the process of changing passwords! This makes it so easy for ungrateful children at home to steal their parents' money, especially those who don't know how to use the internet.
If a stranger picks up my phone and wallet (usually my ID and bank card are in the wallet), regardless of whether I activated quick payment or whether my bank card has online banking, they can easily steal all the money from my debit card (using my phone number and ID to easily change the payment password).
If someone close to me knows my situation (recovering passwords is even easier, and card number information can be easily obtained), it becomes even easier.
If your partner has a conflict with you and intends to divorce with malicious intent, they can easily transfer all the money from your card through this method.
If your child is addicted to online games or gambling and asks you for money, and you refuse, they can also easily take your money through this method.
If you don't believe it, you can try using Tenpay (not WeChat; I haven't tried Alipay yet).
Please note that quick payment supports credit cards, debit cards, and savings books, regardless of whether you have activated online banking. With more and more third-party payment companies supporting quick payment, theoretically, as long as someone knows your identity and bank account information and gets your phone SIM card, even if they don't change your Alipay and Tenpay passwords, they can easily register with your name at other third-party payment companies (you won't be registered with all third-party payment companies), and you could very likely be robbed of everything.
Credit Card Minefield: Why Was I Penalized 500 Yuan in Interest Despite Having Enough Money for Automatic Repayment?#
Ahem
I have a credit card from a certain joint-stock bank, and for convenience, I bound it to an automatic repayment savings card, choosing full repayment. It seemed very safe, right? No installments, no late fees! One month I swiped 29,000 yuan, and just that month, the savings card I bound was short of 1000 yuan. On the evening of the repayment day, I hurriedly deposited the 1000 yuan into the savings card and went to sleep peacefully without worrying...
Who knew that the next month's statement would shockingly show 502.95 yuan in "revolving interest"! No way?!
When I called to inquire, I learned:
- The automatic deduction date ≠ the final repayment date.
Different banks have different timings for automatic repayments on credit cards; some even "secretly" deduct a few days early, and some may deduct a few hours early, often causing unaware users to incur penalties. Check if your bank deducts early; if you deposit insufficient amounts after the required time, you will be charged interest as if you hadn't repaid in full!
2. Since failing to repay in full has become a fact, how is interest calculated?
It's not based on 1000 yuan, but rather calculated daily based on the time and amount of each transaction of the 29,000 yuan! Oh my god~~~ I feel so exhausted.
Interest: (Date of transaction - Repayment date (days)) * Transaction amount * 0.05%
Later, I called the bank, and they said that since I was unaware and had a good credit record, they would reduce it by half and refund me 250 yuan.
This incident was truly a bit silly. I share this tearfully with everyone!
If the balance in the linked account is insufficient on the final repayment date, do not attempt to deposit money into that account; instead, go directly to the counter or ATM to make the repayment.
10. Emergency Strategy for Credit Card Fraud#
- Credit card payments are divided into several layers: issuing bank, issuing organization, acquiring bank, and acquiring institution. Therefore, the acquiring merchant usually receives notifications; if the fraud is due to the acquiring merchant's failure to check signatures, etc. (which Chinese merchants generally do not check), then it is the merchant's responsibility. I know this because I am responsible for a similar company, so I understand the responsibility relationships involved. Ultimately, the victim of fraud will be the merchant, but the merchant chooses to evade responsibility by requiring a password.
- The password is an important piece of evidence in fraud cases; if you enter a password, you cannot prove that you were not defrauded, and the bank will adamantly deny it, so the ultimate victim is you. Therefore, many people, including myself, do not set a password for credit card transactions.
- Credit cards are safer than debit cards because when credit cards were created, the card organizations set up many loss protection plans to promote their cards.
- If your credit card is fraudulently used, you must call the issuing bank before midnight on the same day; the sooner, the better, because credit cards settle at midnight, and before that, the money has not reached the merchant, so the merchant can only accept their misfortune.
- You must report to the police immediately; all institutions' prior agreements will mention that a police report is a prerequisite for compensation.
- If you have any other questions, feel free to ask. I have personally experienced fraud, and after sending the card and police report materials to the China Merchants Credit Card Center, the account was cleared within two days.
- After fraud, don't worry about the bill because you can refuse the transaction; this transaction will not enter the bill until it is confirmed, of course.
1. The Clever Use of Changing the Billing Date#
I guess many friends' first question is, "Is that possible?"
Yes, you may not know that the billing date of a credit card can be changed. For example, China Merchants allows changes every six months, while Minsheng allows changes once a year... Some can be changed directly through online banking, while others require a call to customer service. But in any case, it can be changed.
So, what is the benefit of changing the billing date? Well, it extends the interest-free period.
First, let's look at the situation without changing the billing date. Suppose your billing date is the 12th, and the final repayment date is the 1st of each month. In this case, the longest interest-free period you can utilize is:
Spend xx yuan on June 12;
The statement is issued on July 12;
Repayment is due on August 1;
Total: 50 days.
Now consider the situation with a changed billing date:
Spend xx yuan on June 12;
On July 11, change the billing date to the 10th of each month, with repayment on the 28th;
The statement is issued on August 10, and repayment is due on August 28;
Total: 77 days.
That's nearly an extra month.
What’s the use?
This is money you should have repaid but can continue to use without paying interest.
If you just made a large purchase, whether buying a car or helping a friend buy a house, this method allows you to delay repayment.
Combined with the rental collection method I introduced, the saved funds can earn you money. How to collect rent? Feel free to reply with 123 or 139 to learn about the channels I recommend.
Even if you buy a principal-protected wealth management product from the bank, you still have money; or, even if you put it in a bank for interest, it’s still money.
Key point: Remember and keep in mind to change the billing date the day before the billing date, and set the new billing date to yesterday. As for whether your card can change the billing date, don’t ask me; just call the bank to inquire.
12. Credit Card Debt Interest at 20%, Are You Still Reckless with Spending?#
The first question: Unless you intentionally want to increase your limit or genuinely have no money to repay, try to avoid installment repayments.
A few days ago, I received a text message that sounded very attractive: "Our bank is launching a platinum installment credit card, with the opportunity to obtain a credit limit of over 60,000 yuan." However, the word "installment" extinguished my interest.
Why? This leads to the way interest on credit card loans is calculated, using China Merchants as an example (having suffered from it myself), other banks are similar. Next, I will discuss some misunderstandings that people who have not suffered losses may have about credit cards:
"Interest-free" is only valid if you repay the debt on time; otherwise, it becomes a daily interest of 0.05% (annualized at 18%, compounded monthly), and you also have to pay 5% on the unpaid portion of the minimum repayment amount, with a minimum of 10 yuan in late fees.
Example: The China Merchants card statement is issued on the 11th of the previous month. If I spent 10,000 yuan on April 12 and forgot to repay by the repayment date on May 28, even if I remember to repay on the 29th, how much interest do I owe?
- Once overdue, there is no interest-free period.
0.05% * 10,000 * (May 29 - May 28) = 5 yuan? Wrong! You thought the bank's interest-free benefits were that easy to exploit?
The correct calculation is: 0.05% * 10,000 * (May 29 - April 12) = 235 yuan!!
If you still haven't repaid by the second billing date on June 11, how much interest do you think you owe? 0.05% * 10,000 * (June 28 - April 12) = 385 yuan? Wrong!
-
The interest on the debt is calculated using compound interest!
On the second interest calculation date, the principal of the debt has already become 10,000 + 10,000 * 0.05% * (June 11 - April 12) = 10,300 yuan!
So, the correct calculation is: 300 (interest before the second billing date) + 10,300 * 0.05% * (June 28 - June 11) = 300 + 87.55 + 387.55 yuan!
If you still haven't repaid by July 11, the compound interest calculation continues! -
There are late fees!
Some banks only calculate late fees after 60 days. China Merchants calculates late fees after the first missed payment, which is a one-time fee of 5% on the unpaid portion of the minimum repayment amount, with a minimum of 10 yuan.
Generally, the minimum repayment amount for China Merchants is 10% of the total debt, so if you owe 10,000 yuan, the minimum repayment amount is 1,000 yuan, making the 5% fee 50 yuan.
So, if you unfortunately remember this on June 28, the total extra fees you need to pay are:
50 + 300 + 87.5 = 437.5 yuan!! This amounts to an annualized interest rate of 20.7%! Almost four times the current returns of various money market funds!
Thus, we arrive at the initial conclusion: unless you intentionally want to increase your limit or genuinely have no money to repay, try to avoid installment repayments.
- If you keep dragging it out, it may even affect your mortgage application!
The central bank's personal credit system contains complete credit information for commercial credit cards. If you have serious overdue payments (like dragging it out for a year...), you may not even be able to apply for a mortgage; you need five years of good credit history to apply for a loan, which is a real experience shared by friends in the group.
The second question: If you really want to increase your limit, what should you do?
Repay 9,500 yuan, and then pay 500 yuan in installments, making sure to pay the minimum repayment amount to avoid unnecessary late fees, and you can exchange a small amount of interest for an opportunity to increase your limit.
What? How to increase it? After paying the installments as required, just call your credit card center to apply.
13. Which Channels Allow Credit Card Repayment Without Fees?#
Q: Which channels allow credit card repayment without fees? I don't want to pay fees! Help!
A:
-
China Merchants and CITIC can repay through their WeChat official accounts. (It seems that banks that do credit cards well can do this), and others include Alipay and Cash Treasure. Actually, the poster can also open a local commercial bank card, as online transfers are usually free.
-
I started using credit cards while in college, probably back in 2005. Over the years, I have transitioned from counter repayments to using modern technology for repayments.
(1) The simplest way that incurs no fees is to repay directly at the counter (this is the most original repayment method, and many people still use it, mainly because they don't trust modern technology; my colleagues, who are the same age as me, always go to the counter and never shop online).
(2) A more conservative method than counter repayment is to bind your credit card to the debit card of the issuing bank and activate the automatic repayment function, which can waive fees. However, the primary requirement is that your debit card must have sufficient funds.
(3) As many netizens now do, you can repay using any bank's online banking. Most banks have opened online banking and recommend using it to help repay other banks, and some do not charge fees.
(4) Using mobile banking for repayment is also a good choice; it is safe and reliable, and banks provide dynamic codes for mobile banking to ensure fund safety. Moreover, mobile banking generally has zero fees.
(5) Third-party repayment options are also quite numerous. Previously, there were reports about Alipay being unsafe, but it was later found to be malicious slander. Since the advent of third-party software, I find using mobile clients to repay credit cards to be incredibly convenient. For third-party software, it is also based on relatively large websites and financial institutions, making it trustworthy. Third-party software includes: Alipay, Tenpay, WeChat mobile payment...
Regardless of the repayment method, the key is to ensure the security of your information so that you can enjoy repaying your credit card without incurring fees.
14. Is Standard Chartered's Credit Card Worth Applying For?#
Regarding Standard Chartered's card issuance, the big player has been paying attention for a long time, so today I will write about the two card options.
Please do not have too high expectations, or rather, do not have any expectations...
Card Levels
Standard Chartered's credit cards are divided into "Prestige Card" and "True Ease Card." From the setup, they correspond to "Platinum Card" and "Gold Card." Below, I will refer to the platinum and gold cards.
Like Citibank, each set of cards has RMB cards and USD cards. The USD card is of the Visa brand.
Interestingly, the platinum card corresponds to the Visa Signature level in USD; the gold card corresponds to the Visa Platinum level in USD.
This means that even if you apply for the lower-end gold card, you can still have a Visa Platinum card, which allows you to enjoy Visa platinum benefits.
If you apply for the platinum card, you can have a Visa Signature card, which is higher than Platinum in the Visa system and lower than Infinite, helping to elevate your status.
Old friends should remember that China Merchants also issued a single-currency Signature card, which I will mention later.
Card Features
Due to the numerous "benefits," I will only highlight the notable features. Most of these features are not particularly impressive. You can check the official website for more details.
Common Features
-
3x points for RMB spending. The 3x points policy for RMB spending ends at the end of 2015. At that time, it is possible to stop the 3x points policy for any reason. 1 USD spending = 10 points. This gives me no reason to use the USD card.
-
36:1 points redemption for airline miles.
You can redeem miles for Air China, China Eastern, Asia Miles (Add Points), and Singapore Airlines (not useful). This is equivalent to redeeming Asia Miles at a ratio of 12:1 for RMB spending. This is a good point. -
Limited card application cities.
Currently, only: Shanghai, Beijing, Shenzhen, Chengdu, Suzhou, and Hangzhou can apply.
No Guangzhou? Yes.
Platinum Card
- Three luxury car airport transfers per year.
Prerequisite: Spend at least 1000 yuan in the month prior to using this benefit. - In the Jiangsu, Zhejiang, and Shanghai regions, you can have breakfast at Starbucks on Mondays.
Limited to a total of 50,000 servings, valid until September 30, 2014. Friends not in Jiangsu, Zhejiang, and Shanghai can just take a look. - 6 airport lounge access rights.
You can choose either the Longteng card or the PP card. Note that it is optional; you cannot receive both. - Sign-up gift: 300,000 points or a Hilton Honors membership.
The big player thinks the latter has no value, so no explanation. 300,000 points are equivalent to over 8,000 miles.
Gold Card
- In the Jiangsu, Zhejiang, and Shanghai regions, you can have breakfast at Starbucks on Tuesdays.
Shares the total of 50,000 servings and the September 30, 2014 deadline with the platinum card. Overall, it's quite lackluster. - Sign-up gift is 150,000 points.
This can be exchanged for over 4,000 miles.
Card Disadvantages
-
Cannot redeem China Southern miles.
You can redeem Asia Miles, but Asia Miles is not as good as China Southern on some routes.
Not to mention that China Southern often holds various discount redemptions. So not being able to redeem China Southern is quite a loss. -
The platinum card has an annual fee of 2500 yuan, which is too expensive.
The first year does not waive the annual fee, and the second year can waive it with 250,000 yuan in spending, but the details have not yet been released.
Compared to Citibank's platinum (privilege card), Standard Chartered's platinum card has no advantages in terms of fees or benefits. -
Online shopping points? Just a gimmick.
China Merchants cards, Huaxia cards, and CITIC i Platinum cards have always earned points when using Alipay's quick payment. Standard Chartered's claim that online shopping earns points also requires using the quick payment channel, which is really uninteresting.
Overall Evaluation
Currently, the Standard Chartered Platinum Card has no practical value. However, the card design is nice. Considering that there is no annual fee for not applying, it might be worth a shot.
Want luxury car airport transfers? I recommend using Uber. The service is reliable, and the cost for three transfers is less than 1,000 yuan.
If you must apply, go for the Gold Card (True Ease Card). It has these features:
- The annual fee can be waived;
- The sign-up gift can be exchanged for 4,000 miles;
- RMB spending can be redeemed for Asia Miles at a ratio of 12:1, successfully surpassing the China Merchants Gold Card and Classic Platinum Card, matching the Citibank Black Card ratio;
- You can obtain a Visa Platinum card.
For friends with stable jobs, applying for the Gold Card should not be difficult.
To elaborate a bit more, the big player believes that foreign banks can connect spending points with excellent foreign loyalty programs, which will also encourage domestic banks to follow suit. In the long run, the beneficiaries will be the cardholders.
Citibank's black card (privilege card) has been doing quite well in the past two years. It can now redeem miles for 9 airlines and points for Hilton and IHG. It has become a cost-effective platinum card.
The products launched by Standard Chartered currently have limited appeal. I sincerely hope they can step up their efforts.