Written in advance: The construction of a knowledge system is crucial
In the hands of different people, credit cards serve different purposes. Some cash out to do business, some redeem points to gain various loyalty benefits, and some use them to enjoy VIP travel services and insurance...
When we try to filter and judge some cards from an observer's perspective, we need a more complete 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 be used to redeem China Southern Airlines miles. On the surface, they seem evenly matched, but in reality, 20,000 Air China miles is 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 favorable 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 intricacies. 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 promotion 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, then 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 exchanged for great hotels.
Regular spending automatically converts to IHG accounts at a ratio of 18:1, 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, then 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, then reply with 93 to obtain):
In addition, China Merchants Bank's multi-currency card, CITIC's Huatai Fund 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.
China Merchants Bank's multi-currency card 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 low application thresholds for small platinum cards. They are 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 at CITIC, so you can cut in 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. There are generous cashback promotions at many duty-free shops abroad and several DFS in the U.S.
After binding to China Southern Airlines, it converts miles at a 14:1 ratio, with double points abroad, 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, then reply with 36, 143 to obtain):
Xingye Hang You Bai
Airport pick-up and drop-off in many cities worldwide (including domestic), with top-level 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, then 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 known as the "black cabbage." Unlimited access to airport lounges worldwide, using the provided PP card abroad and the bank's platinum card domestically. ICBC has the most airport partnerships in the country, 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 Longteng cards, do not have this service.
This card is not easy to apply for—if you do not have dual six-star status at ICBC, they won't even accept your application form.
How to achieve dual six-star status? Buy more financial products, trade paper gold (don't blame me if you lose money), and wait long enough (usually after going through a June or December)... Congratulations, you have achieved ICBC dual six-star status.
Detailed introduction (follow the WeChat account SeniorPlayer, then reply with 12 to obtain):
China Merchants Bank American Express Platinum Card
The annual fee of 3600 yuan is not waived. However, the points that can be redeemed are many and great—can redeem miles from several foreign airlines, the best being BA; can redeem points from foreign hotel groups, such as 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 and have a great time, dedicated to those who love life.
Detailed introduction (follow the WeChat account SeniorPlayer, then reply with 13 to obtain):
FHR introduction and practical operation (follow the WeChat account SeniorPlayer, then 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 exchange ratio of 12:1. It's 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, then 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 advantage of the Bank of Communications is 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 easily surpasses ICBC's black cabbage and China Merchants Bank's American Express Platinum (which does not have PP for supplementary cards). So, if you need a more enjoyable travel experience, paying the 1000 yuan annual fee is not a big deal. Coupled with the previously mentioned Xingye Hang You Bai's pick-up service, travel becomes perfect.
Detailed introduction (follow the WeChat account SeniorPlayer, then reply with 32 to obtain):
China Merchants Bank Classic Platinum Card
The benefits of the China Merchants Bank Classic Platinum Card are considered a subset of the American Express Platinum. Dental cleaning and health check-ups are quite practical, and the airport lounge access is limited to 6 times, but that’s enough if you don’t travel much.
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 you can earn 10 times the points on your birthday, 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, then 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 the China Merchants Bank platinum installment card (a big pit).
Everyone is welcome to add more.
2. Five Tips for Credit Card Beginners#
I am currently also following a route of having fewer but better cards. Currently holding:
- ICBC Air China White
- Bank of China Infinite EMV, Bank of China Infinite UnionPay Dual-Standard, Bank of China EMV White, Bank of China Elite White
- CCB Air China White
- Citibank Blue Card
- China Merchants Bank Master Gold, American Express Gold, Classic White in transit
- The useless Bank of Communications 8k limit grocery card
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 provident fund mortgage at Shanghai Rural Commercial Bank and plan to try the legendary Agricultural Bank of China World Xin White.
Two bottom lines: Don't take cards with limits below 50k, and don't take cards below platinum (the postal card is an exception; non-system personnel can only get a gold card at most).
Banks with many cashback market activities: Guangfa, China Merchants, CITIC, Bank of Communications.
After reading most of the replies, it turns out that there are indeed many wealthy people on Xueqiu, and most of them do not use credit cards much, preferring to pay directly with cash.
For those who enjoy playing cards, I suggest:
- Apply for CCB, Postal, Huaxia, and Citibank as soon as possible; once you have many cards and multiple account banks, 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 and ABC, as they may give you a card with a limit of 500.
- Bank of China is the least principled among the four major banks; if you give them money, they will cater to you. Buy a financial product worth hundreds of thousands, and they will give you a platinum card.
- Bank of Communications cards have many benefits, but be careful when redeeming, as they can easily bite back.
- Don't bend over 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 has dozens of accounts on one card, making it a credit report killer. Keep CITIC and Bank of Communications limits low, 30k is enough, as these two sometimes directly reduce your limit by a zero.
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 bank's 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 Bank of China. Specifically, currently, the Bank of China's EMV Platinum Card has many activities abroad.
Q: Currently, among national commercial banks, besides Minsheng, Xingye, ABC, and Everbright, I already have cards from 9 banks totaling 14 cards. Should I also apply for one from these 4 banks?
A: If you have a collecting hobby, go for it; if not, wait for a card you really want to come along, as you won't lose anything.
Q: I already have the Bank of China's UnionPay Platinum Card (which has no annual fee within the validity period). I expect zero opportunities to go abroad soon. Is it still necessary to apply for a Bank of China EMV Platinum Card? If so, should I choose VISA or Master EMV?
A: I think, since it has no annual fee within the validity period, why not?
Q: What good tricks do big players have for increasing limits? My limit is 30-40k, 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 worries me.
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 swiping it every day at a supermarket, the bank will definitely treat you differently.
Q: Many merchants' POS machines are coded, resulting in no points for card swipes. How should this situation be handled?
A: Besides calling the bank to complain, there isn't much you can do. The domestic acquiring fee rate is too low, and clever compatriots always find ways around it.
Q: How can I cash out from a credit card to Yu'ebao?
A: There are ways to do this, but you need to pay attention to details in execution, such as listing 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, and my monthly salary is 10K, as 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 also get a multi-currency card. Those standard gold cards are not very meaningful.
Q: 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," does that refer to 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: The Bank of China 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 best for mindless swiping?
A: I think the Bank of Communications Walmart card is quite suitable, with high point returns and no long list of merchants that don't earn points like China Merchants...
Q: Which credit cards can be exchanged for Hilton hotel stays? How to act like you frequently redeem points during the exchange?
A: The China Merchants American Express Platinum and Citibank Black Card can both be exchanged for Hilton points. In fact, Hilton points are currently being sold at a discount of 20%, and you can buy points directly on the website. As for redeeming... you'll know after redeeming once; it's very easy.
Q: Hello, I want to ask as a college student without a fixed income proof, because of overseas shopping and purchases, how can I conveniently complete this step to apply for a credit card? The asset proof I can provide includes a stock account worth nearly 500,000 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: 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: There are too many cards now, and I hope to get some guidance. Thank you! — CITIC i Platinum Card (no annual fee for swiping), CITIC IHG Platinum Card (membership in the Joy Club), Bank of China's Great Wall Global Platinum Card (discounts at Hong Kong and Macau merchants, installment plans, no annual fee), Ping An Car Owner Gold Card (cashback on gas, car washes), China Merchants Bank 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 active; you can consider getting a Citibank Black Card, which is cost-effective for mileage and offers travel benefits. Additionally, the China Merchants card probably won't be used much...
Q: Which card is practical for swiping in Taiwan?
A: If the timing is uncertain, consider the Bank of China's 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 the end of July next year, and registration is required...
Q: Will credit cards 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: Comparing Credit Card Use Among ICBC, BOC, CCB, ABC, and CMB#
Currently, I have five credit cards: ICBC, BOC, CCB, ABC, and CMB, but I feel that two cards are enough, and I actively applied for them.
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 interest, if you accidentally forget to repay in full, they will only charge interest on the overdue amount. For transactions under 1000 yuan, you can avoid entering a password, which I believe is the safest way to minimize password use, as small purchases are the main consumption method. Every transaction has an SMS notification, while CMB seems to have no notifications for transactions under 300 yuan. If you want to borrow cash, you can just withdraw cash without fees as long as you repay it on the same day, so I often don't carry a debit card, while other banks charge a fee of 0.05%. Deposits are free nationwide, and excess payments can be directly transferred from online banking to ICBC debit cards. For example, I often use this feature to transfer money from other banks to ICBC for free, and the transfer speed is fast. When shopping online, you can use a U-shield and there are no spending limits. The downside of ICBC credit cards is that the points are not very rewarding.
I use the Bank of China VISA EMV mainly for overseas shopping and travel. The Bank of China credit card has a virtual card feature that can limit the amount, making it feel very safe for overseas shopping and online purchases; even if it gets fraudulently used, the loss won't be too great. ICBC's online banking can also limit overseas channels.
CMB's online banking is quite good, but it’s 20 yuan per point, and less than 20 yuan earns no points, which is quite stingy. CCB's card is very mediocre, with no special features, and small purchases don't even get SMS notifications, and the interest-free period is short. The Agricultural Bank of China’s card is worth mentioning because it allows for early repayment of installments without fees. There are no full repayment penalties either.
When I need small parts at home, I usually check if I can exchange points for them. However, many channels no longer offer points for consumption, so points are basically negligible across the board. Therefore, I prefer the ICBC card that helps me save money.
You Should Know About CMB's Credit Card Pitfalls#
The first credit card of a big player was from CMB, and I have previously recommended CMB cards.
I have used CMB cards for 9 years, and I see CMB becoming increasingly stingy. Today, I’m opening a thread to publicly complain.
If you resonate with this, feel free to share it with more of your friends. It might catch CMB's attention and change some of their bizarre policies.
Swiping 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 be adjusted accordingly. However, the excess not accumulating means that if you swipe 39 yuan, you can only get 1 point. Is this not a case of being greedy?
For those who just realized this, you might choose not to swipe CMB 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 that sound amazing?
However, if your points are with CMB, unless you have a platinum card, you cannot redeem them.
You ask, if I can't redeem miles, what can I do with points?
You can swipe for DQ, or exchange for gifts, but the big player thinks that not being able to redeem miles basically makes the card useless.
Of course, CMB's airline co-branded cards can automatically convert points to miles. However, based on the exchange ratios, none of CMB's airline co-branded cards are worth having.
Positive case:
Minsheng Bank is quite good. The gold card can exchange miles at a ratio of 18:1, and the platinum card at 15:1, with even better ratios for luxury platinum and diamond platinum cards.
Damn it, with a platinum card, why can't I still redeem miles?
Well, it was said long ago that CMB has many platinum card products, and they are mixed.
If you applied for the exquisite platinum card, you cannot redeem miles;
If you applied for the most pitiful installment platinum card in history, 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 CMB card for gas does not earn points. If you have a car and pay for gas yourself, it's better to switch to another bank.
Industry model:
The Bank of Communications card is good; not only does it give points, but it also has the most popular Friday promotion, offering 5% cashback on Fridays, and 10% cashback for platinum cards. Swiping for flight tickets? Still no points...
For such high-end spending as flight tickets, shouldn't there be some points? The fact is, CMB 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 flight ticket, either go to Travel Easy or use another card.
2.45 million "small merchants that do not earn points"? What’s going on? Do you think only gas and flight tickets don’t earn points?
On CMB's website, there has always been a list of "small merchants that do not earn points." The big player downloaded it while writing this article and found that there are a total of 2,457,372 "small" merchants that do not earn points...
If someone can memorize this list, they would definitely be the champion of the strongest brain!
High-end benefits are issued per household.
If you hold the CMB 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 fees for both cards, sorry, you still only get 4 benefits a year.
If you also get an infinite card and 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...
To mention the 10x points on your birthday benefit, similarly, it is allocated per household. Even if you have 4 cards, you can only earn a maximum of 10,000 points on your birthday. CMB's actuaries are quite good.
Recommending new users? Only three opportunities a month... Many friends have commented that when the big player recommends CMB cards, they can let everyone fill in their name as the referrer.
At such times, the big player in front of the screen can't help but curl their lips: Do you know that CMB only gives three referral rewards a month, and they are in points... there’s really no motivation to take 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 every additional person, you get 50 yuan/person...
I’ll stop complaining here for today. If anyone has other complaints, feel free to leave a message to the big player; maybe we can come up with a second issue.
Most of the points in this article are also pitfalls to avoid when using CMB.
6. Smart Use of Credit Cards: 340 Yuan First-Class Ticket, Compensation of 500 Yuan for Delay#
During the Asiana Airlines San Francisco accident and the disappearance of Malaysia Airlines, the big player has twice pushed knowledge about travel insurance. 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 the claim experience to share with everyone. This article is worth saving for future reference.
{Claim Process}
Step 1: Confirm the delay and initiate the claim application.
Different credit cards have different standards for delay insurance. For example, CITIC i Platinum, when purchasing tickets through designated channels, can claim 1000 yuan for a delay of 2 hours.
I used the CMB Platinum Card, which has the advantage of not restricting the ticket purchase channel, and you can claim at least 500 yuan for a delay of 4 hours. After confirming that the flight delay meets 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 gather for the claim.
Step 2: Gather claim materials.
Generally, the materials for delay insurance claims must include at least:
- Delay certificate
- Boarding pass
- Itinerary (not mandatory)
When a flight is delayed, you can obtain a delay certificate at the airline's counter. This material is the core of the claim, so make sure to get it. The itinerary can be obtained at the airline's ticket counter. Boarding passes are self-explanatory.
Step 3: Submit claim materials.
Within a few working days, the insurance company will send you an email listing the materials needed for submission. Just scan all materials and send them over, and you can wait to receive the money. Some insurance companies may require mailing the originals, so just follow their instructions.
I bought the ticket with the CMB Platinum Card, and from the flight delay to receiving the insurance payout, it took a total of 12 days. During this time, I was too busy and delayed submitting materials by 3 or 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, resulting in 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 how to exchange (cheat) for free tickets from Southern Airlines.
{Advanced Play}
In fact, when a flight is delayed, you can get even more compensation.
Taking the CMB American Express Platinum Card as an example, the travel inconvenience insurance provided is up to 4000 yuan, and 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 spend money on the hotel, right? You would need to buy new underwear, right? You would have to eat at the hotel, right? ... All these expenses can be reimbursed, just keep all the invoices, and the total should not exceed 4000 yuan. Staying one more night at the Four Seasons Hotel would be no pressure.
If you use the CMB Classic Platinum Card, the cap is 2000 yuan. You can still enjoy it a lot.
{Optional Cards}
This article may look like an advertisement for the CMB Platinum Card, but in fact, many cards come with related insurance. You don't even need a platinum card. For example, the previously mentioned CITIC i Platinum, all banks' airline co-branded cards, and the CMB multi-currency card.
Different cards carry different insurance clauses, which also means different coverage amounts. Everyone can choose the one that suits them best for purchasing 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 clauses for travel inconvenience on the CMB card and found no exclusions for reward tickets.
So, just keep it tacit.
If one day the big player uses aviation accident insurance, they probably won't be able to share their experience with everyone...
8. My Regret Over "Quick Payment"#
Recently, I wanted to transfer money (exactly 1000 yuan) from a Postal Savings Bank debit card to a China Merchants Bank debit card, but I hadn't activated its online banking, and the branch was too far away to withdraw cash (cross-bank withdrawals incur fees, and I can't withdraw an exact amount). I wondered if I could transfer the money through Alipay or Tenpay and then withdraw it from another bank.
Entering Tenpay, I selected "Recharge," chose Postal Savings, and it automatically entered the activation for "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 Bank, and the withdrawal was successful.
I was just withdrawing cash; if I used Tenpay and Alipay's quick payment to recharge and then used the transfer function to send money to others, it would also be very simple.
I was surprised that I could transfer without activating online banking, without inserting a key, and without entering a withdrawal password. It's so convenient! However, I now feel very anxious.
Because all third-party payment companies like Alipay and Tenpay allow setting and modifying passwords without going to the branch, just through the internet, theoretically, if 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-shields).
If you haven't registered for Alipay, Tenpay, or any third-party payment companies that support quick payment, don't think you're safe; you're actually in danger! Anyone who gets your phone, ID, and account information can easily register for you, and without needing your bank card password, they can easily take your money, including from your passbook. They don't even need to go through the process of modifying the password! This makes it so easy for ungrateful children at home to steal their parents' money!
If a stranger picks up my phone and wallet (usually my ID and bank card are in the wallet), it doesn't matter whether I have activated quick payment or not; they can easily steal all the money from my debit card (using my phone number and ID to easily modify the payment password).
If someone close to me knows my situation (recovering the password is even easier, and they can easily get my card number information), it becomes even easier.
If your partner has a conflict with you and plans to divorce, with malicious intent, they can easily transfer all your money 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 tested Alipay yet).
Please note that quick payment supports credit cards, debit cards, and passbooks, regardless of whether you have activated online banking. As more and more third-party payment companies support quick payment, theoretically, anyone who knows your identity and bank account information, and gets your phone SIM card, can easily register in your name with third-party payment companies (you won't register 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 Sufficient Funds 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 or late fees! One month, I swiped 29,000 yuan, and just that month, the savings card I bound was short 1000 yuan. On the evening of the repayment day, I hurriedly deposited that 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 ask, I learned:
- The automatic deduction date ≠ the final repayment date.
Different banks have different times for automatic repayments on credit cards; some even "secretly" deduct a few days early, and some may deduct a few hours early, often leading to unknowing partners being "penalized." Check if your bank deducts early; if you deposit insufficient funds after the required time, you will be charged interest as if you did not repay in full!
2. Since failing to repay in full has become a fact, how is the interest calculated?
It is not calculated based on 1000 yuan, but rather on each transaction amount and time for the 29,000 yuan! Oh my god~~~ I feel so overwhelmed.
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 reduced it by half and refunded me 250 yuan.
This incident was really quite foolish. 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 repay.
10. Emergency Strategy for Credit Card Fraud#
- Credit card payments are divided into several levels: issuing bank, issuing organization, acquiring bank, and acquiring institution. Therefore, the acquiring merchant usually receives notifications; if it 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 using passwords.
- Passwords are an important piece of evidence for fraud; if you enter a password, you cannot prove that you were not defrauded, and the bank will adamantly deny it, so in the end, the 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 many loss protection plans to make their cards popular.
- 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 blame themselves.
- You must report to the police immediately; all institutions' previous 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 been defrauded, and after sending the card and police report materials to the China Merchants Bank credit card center, the account was cleared within two days.
- After fraud, don't worry about the bill because you 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, can this be done?
Yes, you may not know that the billing date of a credit card can be modified. For example, CMB can change it once every six months, and Minsheng can change it once a year... Some can be modified directly through online banking, while others require calling customer service. But in any case, it can be changed.
So, what is the use 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 on August 1;
Total of 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 on August 28;
Total of 77 days.
That's nearly an extra month.
What’s the benefit?
This is money you were supposed to repay, but you can continue to use it without paying interest.
If you just made a large purchase, whether you bought a car or helped a friend swipe for a house, this trick can allow you to delay repayment.
Combined with the rent 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 several channels I recommend.
Even if you go to the bank to buy a principal-protected financial product, you still have money; or, at the very least, keeping it in a bank for interest is still money.
Key point: Remember and keep in mind to change it 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 Recklessly Spending?#
The first question: Unless you intentionally want to increase your limit or truly 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 a chance to obtain a credit limit of over 60,000 yuan." However, the word "installment" extinguished my interest.
Why? This leads to the way credit card loan interest is calculated, using CMB as an example (I have personally suffered from this), and 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 is a daily interest of 0.05% (annualized at 18%, compounded monthly), and you also have to pay 5% of the unpaid portion of the minimum repayment amount, with a minimum of 10 yuan in late fees.
Example: The CMB card statement is issued on the 11th of the previous month. If I spent 10,000 yuan on April 12 and forgot to repay on the repayment date of 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 take advantage of?
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!
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The interest on the debt is calculated using compound monthly 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 monthly compounding calculation continues! -
There are also late fees!
Some banks calculate late fees after 60 days. CMB calculates late fees after the first missed payment, which is a one-time fee of 5% of the unpaid minimum repayment amount, starting at 10 yuan.
Generally, CMB's minimum repayment amount is 10% of the total debt, so if you owe 10,000 yuan, the minimum repayment amount is 1,000 yuan, meaning 5% is 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 is equivalent to a 20.7% annualized interest rate! Almost four times the current returns from various money market funds!
Thus, the initial conclusion is drawn: unless you intentionally want to increase your limit or truly have no money to repay, try to avoid installment repayments.
- If you keep dragging it out, it could even affect your mortgage application!
The central bank's personal credit system has 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, which can give you a chance to increase your limit with relatively low interest.
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! Seeking help!
A:
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China Merchants and CITIC can repay through their WeChat public accounts. (It seems that banks that do well with credit cards can do this), and others include Alipay and Cash Treasure. In fact, the original poster can also open a local commercial bank card, as online banking transfers are usually free.
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I started using credit cards while in college, probably around 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 do not trust modern technology; my colleagues of the same age always go to the counter and never buy things online).
(2) A more conservative method than counter repayment is to bind the 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) Like many netizens now, you can use any bank's online banking for repayment. 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 security. Moreover, mobile banking generally has zero fees.
(5) Third-party repayment options are also quite numerous. Previously, there were reports that Alipay was unsafe, but it was later found to be malicious slander. Since the advent of third-party software, I feel that using mobile clients to repay credit cards is incredibly convenient. For third-party software, it is based on relatively large websites and financial institutions, so it is still trustworthy. Third-party software includes: Alipay, Tenpay, WeChat mobile payment...
Regardless of the repayment method, the important thing 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 situation of the two card types.
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 Freedom Card." From the setup, they correspond to "Platinum Card" and "Gold Card." Below, I will use the Platinum Card and Gold Card to refer to them.
Like Citibank, each card set has RMB and USD cards. The USD card is of the Visa brand.
Interestingly, the USD card corresponding to the Platinum Card is Visa Signature; the Gold Card corresponds to Visa Platinum.
This means that even if you apply for the lower-end Gold Card, you can still have a Visa Platinum. This card can enjoy the benefits of Visa Platinum.
If you apply for the Platinum Card, you can have a Visa Signature, which is higher than Platinum in the Visa system but lower than Infinite. This helps to elevate your status.
Old friends should remember that CMB also issued a single currency Signature card, which I will discuss 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 find more on the official website.
Common Features
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3x points for RMB spending. The 3x points policy for RMB spending is valid until 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.
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36:1 points exchange for airline miles.
You can redeem miles for Air China, China Eastern Airlines, 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 quite good. -
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.
Precondition: Spend at least 1000 yuan in the month before 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 times access to airport VIP lounges.
You can choose between Longteng Card or PP Card. Note that it is optional; you cannot receive both. - Sign-up gift: 300,000 points or a membership in the Hilton Honors Club.
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
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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 discounted redemptions. So not being able to redeem China Southern is quite a loss. -
The annual fee for the Platinum Card is 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. -
Points for online shopping? Just a gimmick.
CMB cards, Huaxia cards, and CITIC i Platinum cards have always earned points when using Alipay's quick payment. The claim that Standard Chartered's 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 are no annual fees 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 Freedom 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 exchanged for Asia Miles at a ratio of 12:1, successfully surpassing the CMB Gold Card and CMB 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 further, the big player believes that foreign banks can connect spending points with excellent foreign loyalty programs, which will encourage domestic banks to follow suit. In the long run, cardholders will benefit.
Citibank's Black Card (Privilege Card) has performed well in the past two years. Now it can not only redeem miles from 9 airlines but also redeem points from Hilton and IHG. It has become a cost-effective platinum card.
Currently, the products launched by Standard Chartered have limited appeal. I sincerely hope they can step up their game.