Credit cards are considered as a potential market when Vietnam is entering a period of "golden population" with a high proportion of people of working age. 70% of Vietnam's population is of working age, and the growth rate of income and expenditure is among the top in the region.
Credit cards are being evaluated as a potential market when Vietnam is entering a period of "golden population" with a high proportion of people of working age. 70% of Vietnam's population is of working age and the growth rate of income and expenditure is among the top in the region.
In addition to enjoying many benefits and attractive incentives when eating, shopping, traveling ... a credit card also creates a dynamic and smart lifestyle for users.
Now, accessing e-commerce sites to buy or pay for electricity, water and telecommunications online has become familiar and brings many benefits to users.
A credit card (Credit Card) is a type of bank card that the holder can use to pay without the available money in the card.
This means that you "borrow" some of the bank's money for purchases, spending and at the end of the period you will have to repay it in full to the bank.
Credit cards are made of polymer plastic with the shape and size according to ISO 7810 standard. Depending on the issuing bank, the card will have its own color and design.
Based on your application profile and credibility (based on CIC information), the bank will issue a credit card limit (the amount in the credit card) at different values.
● Slow payment feature
When you own a credit card, you can spend up front on any transaction like bill payment, online shopping, booking, and flight booking.
You will have 45 days to pay the bank with no interest rates. After this period, the bank will calculate the interest rate as the loan interest rate (the interest rate depends on the bank).
For example in VPBank, the interest rate is 3.19% for Classic card, 2.79% for Titanium card and 2.59% for Platinum card and co-brand card. The interest date for withdrawals will depend on the card payment date according to the statement period.
● Cash withdrawal
With a credit card, customers can also withdraw cash to pay for their payments. However, the cash withdrawal fee is quite high, you should consider.
● Installment payment
Currently, stores or e-commerce sites have accepted customers to use credit cards for installment payments. You have the opportunity to pay in installments at 0% interest, reducing financial burden when paying.
Credit cards are classified in many different ways, in which there are three main types of classifications: by scope of use, brand of card and purpose of using card of customers.
According to the scope of use
● Domestic credit card: is a card issued by a bank to a customer for the purpose of consumption, payment and preferential treatment from partners within that country.
● International credit card: is a card issued by a bank to customers for consumption, payment and preferential treatment from domestic and foreign partners. When using an international credit card, you will incur additional foreign currency conversion charges for foreign purchases.
According to the brand
Classification of credit cards by brand:
● JCB credit card: is a credit card branded JCB from Japan. JCB is a global payment solutions provider headquartered in Japan.
● Visa credit card: is a card issued by Visa Inc affiliated with a bank. Visa Inc is a multinational financial services company that provides intermediary payment services between banks.
● MasterCard credit card: is a card issued by a multinational financial company MasterCard Worldwide affiliated with banks. This is a prestigious corporation in the world. MasterCard's system links with thousands of banks in 200 countries around the world.
According to the purpose of use
● Cashback: is a preferential form of the bank for customers using credit cards. When shopping, your payment will be refunded partially to your credit card based on the amount paid. Cashback can be considered as a form of% discount or bank discount for consumers by credit card.
● Credit card: is a form of accumulating points after paying customers' credit. Each point corresponds to an amount you pay with your credit card. When you accumulate enough points, you will be redeemed for a certain gift.
● Mileage Card: is a preferential credit card that can be converted to miles upon payment. For each amount spent with the card you will be rewarded with a certain number of miles. From that mileage you can redeem a free flight ticket, upgrade your seat class or use a business lounge (depending on the policy of each bank).
● Withdrawal Card: A credit card also has a function that allows you to withdraw an amount of cash to immediately meet your needs based on the credit limit granted. You just need to go to the same ATM or other credit card issuing bank to withdraw money. Withdrawal fee depends on the regulations of each bank.
The convenience of using credit card proves to be the most useful tool in payment and transactions. In advanced countries around the world, consumers often prefer to carry credit cards over cash, because:
- Is a financial aid tool
When users need to raise a large amount of money in a short time, credit cards will be a great source of financial support. This saves you a lot of time and effort in finding money.
- Convenient payment
Credit cards will help you to be proactive in spending and solving problems quickly. Currently, credit cards are accepted in most department stores, shops, and restaurants.
That brings convenience when paying without having to carry cash. Besides, you can also use the card to pay bills such as electricity and water bills or purchase / order on the website.
- Manage spending
When using your credit card, you will be sent a statement by the bank of the transactions incurred each month. As a result, you can track the details of your expenses and have more reasonable plans in the future.
In addition, banks that support mobile applications help cardholders to manage their accounts conveniently and quickly, anytime, anywhere.
- Receive many incentives
Banks often offer many attractive incentives for customers opening credit cards. Discounts when buying goods or services, discounts when booking airline tickets, hotel rooms, ... are the most popular deals. In addition, there are also many incentives to buy interest free installments, cash back.
While there are many benefits to shopping, credit cards still have some weaknesses that consumers need to be aware of.
- Interest rate overdue
Most banks apply a 45-day interest-free policy for customers to repay the advance. However, after 45 days the amount will be charged with interest. This will make it difficult for customers to pay if they are in difficult situation.
- Do not withdraw cash many times
When withdrawing cash by credit card, the user will be charged 4% . Multiple withdrawals will add up to a large fee, costing the cardholder a certain amount of money.
- It is possible to lose money on the card when the card is lost
One disadvantage when using that credit card when you lose it, you will be exploited by an fraudster to make illegal transactions and lose large amounts of money. Illegal transactions can easily be done when shopping online with a CVV number because foreign e-commerce websites usually do not require an OTP.
- May be in debt
In the case of overspending and unable to pay, you could owe the bank a large amount of money. Plus, accruing overdue interest rates will make it even more difficult for you to repay.
Credit card interest rate, a very important factor, is less noticeable. Understanding credit card interest rates, how banks charge interest and penalties will help you avoid "falling from heaven" charges.
Credit card interest rate is the interest payable by credit card holders when making a late payment on their outstanding credit card balance of the previous month.
During the interest-free period, if you pay the bank in full by credit card on or before the due date, interest and late fees will not be charged.
Normally, the interest free period will last for 45 days. It can be understood that the bank's 45 days of interest free credit cards include 30 days of interest free between two payment cycles and a grace period of 15 days (the time the bank renews to facilitate customers to pay. pay off the bank's advance amount to spend). You will not be charged interest if you pay off your bank loan in full during these 45 days.
Currently, some banks are implementing interest free period for credit cards up to 55 days .
To avoid charging interest on credit cards, you need to know a few concepts below:
● Credit card statement date:
A date when a bank closes credit card transactions in a month. The statement date will be fixed for one month.
● Billing cycle:
This is the period of time between the two most recent bank statements. Transactions made during the month will be reported to you by your bank. This is also the interest free period.
● Grace period:
This is the bank's extra time for you to pay the used amount. The grace period is usually 15-25 days, so the total interest free period can be up to 60 days.
- General interest rate
In essence, a credit card is a form of consumer loans . So the credit card interest rate will be the same as the regular loan interest rate.
However, if you pay the full amount paid by credit card within the allotted time, you will not be charged interest.
- Cash withdrawal interest rate
Instead of using a direct payment, if you use a credit card to withdraw cash, you will incur quite high interest rates, about 3-5% of the transaction amount. So, if not absolutely necessary, do not withdraw money from your credit card.
- Foreign currency exchange rate
With an international credit card, you can shop and spend as you please all over the world. And of course, the amount in the card will now be converted to match the country you need to spend.
For each currency conversion on your credit card, you will be charged an interest rate called the currency conversion fee. Ranging from 2 - 4% depending on the regulations of the issuing bank.
Credit card interest rates are calculated based on the following criteria:
Interest-bearing transactions (interest rate): Shopping and online transactions.
Daily average balance: Calculated by adding up each day-end balance in the month and dividing the average by the number of days in the month.
Daily interest rate: Bank will provide information on credit card interest rate per year (APR = Annual Percentage Rate). You will have to convert to daily interest rate (APR / 365).
Example: You use a SCB credit card that is free of interest for 55 days. The billing cycle is from 1 to 30 of each month. Assume that the amount payable is 5% of the outstanding balance.
November 5: You buy goods worth 4 million VND.
November 31: You receive a statement from the bank. Including the amounts you spent during the month. Payment deadline is December 15.
If until December 15: You pay 4 million VND in full, interest will not be charged.
After December 15: If you still haven't paid the above amount, interest will be charged. The amount will now be 4,000,000 * 5% = 200,000. Therefore, the total amount you have to pay is 4,200,000 VND.
1. Suitable audience
Suitable subjects to open a credit card are:
● Vietnamese citizen or foreigner living in Vietnam, aged 18 years or over at the time of application.
● Having a stable job with an income of 4,500,000 VND / month or more.
Specifically, depending on the type of card, the card opening conditions will be slightly changed.
For example, at VPBank, the minimum income to open a VPBank Number 1 withdrawal credit card is 4,500,000 VND / month, but for VPLady cards, VPBank StepUp card is 7,000,000 VND / month, VPBank Platinum card. is 12,000,000 VND / month.
2. File to open credit card
You need to prepare the following documents (Only 1 document is required in each item):
Proof of personal information:
● Identity card
● Demonstrate military
Proof of residence information:
● Household registration book
● Driver's license
● Salary account statements
● Payroll / payroll / salary confirmation (for customers working at state agencies)
● Insurance policy and invoice / receipt.
● Photos of cards and credit card statements of other banks (applicable to customers with less than 3 credit cards of other banks)
● Car ownership papers
Proof of residence:
● Register of long-term temporary residence
● Notice / bill of service / credit card statement / salary statement
● Labor contract
● Decision on salary increase / appointment
● Business registration certificate
* In the traditional way
Traditionally, when you go directly to the bank to open a credit card, you need to do the following 4 steps:
● Prepare complete records
● Fill out the credit card registration form at any bank transaction counters
● Bank officers check the file
● After 10-15 working days, the cardholder goes to the bank to receive the card
* Online registration
In order to save you time and effort, you do not need to directly use a bank branch to make a card, some banks have applied the method of making online credit cards right on their website. It only takes a few minutes to register your card successfully.
● Go to the website of the bank you want to open a credit card
● Choose “Open a card now” and fill in the details
● Upload profile
● Complete and after 10-15 days, the bank officer will contact you for free home delivery
If you regularly use credit cards, then surely everyone already knows the form of purchase with 0% interest rate installment via credit card.
When purchasing goods on installment payment, customers will be entitled to 0% interest rate if they meet the following 2 conditions: The merchant is affiliated with the credit card issuing bank of the customer is using, and the two parties have The agreement does not charge an installment conversion fee.
When the two above conditions are met, customers can choose the 0% installment payment method, depending on the affiliated bank, the installment term will be from 6 months, 9 months or 12 months.
For example, a customer has a credit card with a limit of 20 million dong, buys 1 item worth 12 million dong, and chooses the form of 12-month installment payment. At this time, the customer's card limit will remain 8 million dong. Each month, the bank will charge 1 million VND to the customer's card statement. When the customer pays the balance statement, the customer's card limit will be restored by 1 million dong. That means the first month of payment, the credit card limit increases to 9 million dong, the next month increases to 10 million dong, the next month to 11 million dong, for every 12 payment periods, the card limit will increase. enough 20 million.
In sales units with 0% installment link, but no conversion fee, customers must pay this extra fee, depending on the affiliate bank, the conversion fee will be different.
For example, if a customer buys a refrigerator worth VND8,290,000 from an electronics company, there will be 0% installment support via HSBC card. The calculation of installment payment is as follows:
- If the contribution for 6 months, 0% interest + no conversion fee, each month installments is 1,381,667 dong x 6 = 8,289,000 dong -> no difference in original cost.
- For 9 months' contribution, 0% interest + installment conversion fee is VND 306,730 (equivalent to 3.7% of the order value), each month installment 955,193 x 9 = VND 8,596,730 (difference 306,730 compared to the order). original price).
- If the payment is made for 12 months, 0% interest + installment conversion fee is nearly 400,000 VND (equivalent to 4.8% of the order value), each month installments 723,994 VND x 12 = 8,687,920 VND (difference about 397,000 VND compared with original price).
Along with the 0% installment form, many banks also have the option to convert all spending transactions over VND 3 million into installment payments, with a term of up to 24 months, of course with interest.
For example, VPBank / Timo allows customers to convert all transactions with value over 3 months into installment, with the interest rate of 12% / year for 6-month term, 18% / year for 9-month term and 24%. for a term of 12 months. Shinhan bank also has this form but the interest rate is higher: 3-month term is 0% interest rate, 6-18 months, the interest rate is 21% / year.
The interest rate on installment payment will be calculated as follows: After purchasing an item of more than VND 3 million, customers visit the internetbanking website of the bank to register to convert the transaction into installment payment. If the transaction is VND 3 million, customers can choose the installment payment methods below:
- If paying in 6-month installments with interest of 12% / year, the total payable amount is VND 3,360,000. Thus, each month customers pay 3,360,000 VND / 6 months = 560,000 VND.
- If the 9-month installment payment is paid at an interest rate of 18% / year, the total payable amount will be VND 3,540,000. Accordingly, each month, customers installment installments of 3,540,000 VND / 9 months = 394,000 VND.
- If a 12-month installment payment with an interest rate of 24% / year, the total payable amount will be VND 3,720,000. Thus, each month, installment installments customers are 3,720,000 VND / 12 months = 310,000 VND.
However, customers should note the following:
Firstly, this method is only applicable for orders worth over 3 million VND.
Second, there is no limit on the maximum number of transactions per month, as long as the credit card limit is enough.
Third, the first and second installment forms support up to 12-month installments, banks and vending units work together to convert customer transactions into installments.
Fourth, the third form of installment payment supports up to 24 months but with high interest rates, customers need to register to convert the transaction into installment payment in the internet banking page.
Fifth, with the first and second installment payments, to ensure that the transaction can be successfully converted into installment payments, customers should purchase goods 5-7 days before their credit card statement date. For example, if the card statement is on the 20th, but the customer chooses to purchase on 18-19 installment, there is a high chance that he / she will not be able to convert to installment payment. The third form of installment payment is direct registration, so the browsing time is faster, about 1 working day is done.
For better credit card safety and financial control, CashBerry recommends the following:
● Sign the back of the card
Signing the back of the card will help reduce the loss of money when the card falls into the wrong hands. The merchant can match the signature on the back of the card with the signature of the user to see if you really are the owner of the card.
● Note on payment term, interest rate on credit card deferred payment
When paying your bank 45 days in advance, you will not be charged interest and penalty charges. Therefore, you should pay attention to the payment term as well as the interest rate when paying credit card deferred to make the payment to the bank on time.
● Keep payment receipts and check monthly statements
You need to keep careful receipts for checking monthly statements. In case you have any questions, you can contact the bank or the place where the payment is made for prompt resolution.
● Note when losing your credit card
The first thing you need to do when you lose your credit card is to call the card issuer and report the lost card. The bank will confirm personal information, account number, time of stolen location on the same day of the last transaction and emergency account lockout. This will avoid illegal card usage and unexplained loss of money.
● Do not give out your credit card number to others
When you give your credit card number to someone else, you run the risk of information theft and nefarious transactions by bad people. Note that even for those you are familiar with, it is not advisable to provide information. Therefore, you must be completely vigilant and careful in all transactions, avoid being copied by other people.
In short, a credit card is a double-edged sword. If you swipe too much and can not control well the amount to spend, repayment time will pay very high overdue interest. If you have good control over your spending, the time to pay the debt, and there is no interest penalty for overdue, then the credit card is the savior when you don't have enough money to spend.
Credit cards are popular, but for young graduates, working or those who have little access to banking services regularly, owning a credit card for shopping is still met. many limitations.
Anh Giao, 24 years old (Ho Chi Minh City) recently graduated and is an intern at a foreign company, said: "For a new graduate and working like me, the opening of a credit card is quite a lot. trouble.
First, it is to prove income and have all documents to confirm by the working agency, and then have to wait about 5-7 days for the bank to verify and confirm the information. This is quite annoying and I still do not want to continue making cards ".
Unlike Anh Giao, Mr. Thanh Nam (38 years old) is a person who has a busy working schedule throughout the week and hardly has time to go directly to the bank to register for credit card opening service. Therefore, up to now, all procurement issues Mr. Thanh Nam has to be "entrusted" to his wife.
After all, a credit card is just a tool for you to use every day to shop and spend. Although prepayment is convenient, it can sometimes form bad habits. It was also difficult to open a credit card because of having to prove income and make a salary statement with the bank. Therefore, needing money urgently, if you want to borrow money quickly within 1 hour, you should try how to borrow money online.
?? You may be interested in: Guide to quickly borrow money during the day just need ID card
?? You may be interested in: Simple, easy, no-mortgage online loan service
At the online loan service, customers can register for loan support with "three no" offers:
- No need to go far, the loan process is 100% digitized
- No need to prove income and receive the limit up to 10 million dong immediately
- Do not wait too long to receive money, after reviewing your application, you will be disbursed within 2 minutes.
This is a completely new tool for customers to enjoy shopping more fully, more convenient with many outstanding features.
Instead of using cash, which has many inconveniences, the trend of paying by credit card is now more and more popular. However, to avoid risks and troubles, getting money online quickly is also a quite useful measure for those who need cash urgently.