As a convenient and fast micro-finance payment tool, credit card is favored by the majority of financial consumers, but at the same time, some cardholders also have some improper or misunderstanding in the process of managing and using credit card.

Recently, the China Banking and Insurance Regulatory Commission found in the special inspection of credit cards that some cardholders rent and lend their credit cards, in violation of the "Bank card business management Measures" on "bank cards are only used by the cardholder himself, shall not be rented and lent", and it is very easy to cause damage to cardholders' funds and credit investigation.

To this end, the Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission issued the sixth risk warning in 2022, reminding the majority of credit card holders not to rent, lend or hand over their credit cards to others, so as not to cause losses to themselves and their families.

What are the risks of credit card rental?

One risk: falling into overdraft and credit damage. Cardholders renting and lending credit cards may lead to excessive consumption of credit cards and excessive overdraft of funds. Overdue credit cards caused by inability to repay will not only generate huge interest, compound interest and liquidated damages, but also damage cardholders' personal credit investigation, affect cardholders' application for loans, and even lead to judicial proceedings. In addition, there is also a risk of leakage of cardholders' personal information.

Risk two: cause illegal use of credit cards. If a cardholder lends his or her personal credit card improperly, if the borrower uses the credit card amount for real estate, securities, funds, financial management, or non-consumption areas such as pawn, mortgage, production and operation, it will bring the risk of violation of credit card use to the cardholder, which will easily cause the credit card issuer to reduce the amount of the credit card, restrict the use, stop the use, and even bear the default liability such as fines and interest penalties.

Risk three: hidden dangers of illegal crimes. Cardholders renting or lending credit cards may be used by actual users or criminal gangs for illegal cash, money laundering, transfer of fraudulent funds, telecommunications network fraud and other illegal acts, lessors, lenders may also need to bear the corresponding legal responsibilities. For example, according to the Opinions of the Supreme People's Court, the Supreme People's Procuratorate, and the Ministry of Public Security on Several Issues concerning the Application of Law in Criminal Cases such as Telecommunications and Network Fraud (II), "Those who knowingly or subjectively decide that others use information networks to commit crimes, still illegally hold or rent credit cards to them, and provide them with payment and settlement assistance" constitute crimes of assisting information and network crimes. Article 11 of the Supreme People's Court and the Supreme People's Procuratorate's Interpretation on Several Issues concerning the Application of Law to Criminal Cases such as Handling Illegal Use of Information Networks and Helping information Network Criminal Activities clearly stipulates that "the purchase, sale and rental of units to pay accounts, Those who illegally open and sell or rent other people's mobile phone cards, credit cards, bank accounts or non-bank payment accounts "are identified as subjective crimes of knowing the circumstances." The relevant provisions of the Criminal Law have clear provisions on the possession, use and management of credit cards, and improper use or illegal possession is likely to constitute the crime of credit card fraud and the crime of preventing credit card management.

So, how to use the credit card correctly?

First, apply for a card on demand. Consumers should apply for credit cards in combination with their own consumption habits, repayment ability and other daily actual needs, to avoid blindly applying for cards and overapplying for cards. Credit card related business should be handled through the bank's business branch or official APP, online banking and other formal channels.

Two to comply with the card. It is necessary to cancel the long-term sleep card or useless card in time, so as to avoid loss or annual fee, interest, liquidated damages caused by negligent management. At the same time, pay attention to credit card security, do not easily disclose credit card personal financial information such as card number, password, verification elements to others, beware of being cheated or illegally used by others. When it is found that personal information is leaked or illegally infringed, it should contact the card issuing bank or report to the public security organ at the first time.

Three, use the card correctly. Cardholders should use credit cards in a scientific and rational manner according to their personal and family financial situation. We must adhere to "living within our means", prevent "living beyond our means" and excessive consumption, but also prevent falling into the situation of "paying for loans with loans" and "maintaining cards with cards" due to large debts. At the same time, in daily use, we should fully understand the relevant provisions of credit card bill generation date, interest, interest free repayment period, installment payment, etc., to avoid the adverse consequences caused by overdue repayment.