What is a credit card loan? Convenient Outstanding benefits when borrowing credit cards at SeABank

1. What is a credit card loan?

A credit card is a financial tool that helps users make purchases, payments or withdraw cash in advance within the bank's loan limit and commit to repayment after a certain period of time. Currently, when using a credit card, users can also borrow money based on the credit limit granted from the bank.

A credit card loan is a form of loan that does not require collateral (also known as an unsecured loan). Instead of mortgaging assets, the bank will base on the customer's credit profile, transaction history and repayment ability to decide the loan amount. The loan limit via credit card is usually determined based on the available credit limit on the card and the loan amount can be directly withdrawn or transferred depending on the policy of each bank.

Compared to other forms of loans, credit card loans offer more conveniences such as quick disbursement, no appraisal time, and interest-free period.

2. Advantages - disadvantages when borrowing credit cards? Should I borrow or not?

Credit card loans are increasingly becoming a popular choice for those who need quick and convenient financing. However, this form of loan also has certain advantages and disadvantages.

⇒ So should you borrow a credit card or not?

If you need a quick loan but do not have collateral and do not want to go through complicated procedures, users can take out a credit card loan. When the purpose of the loan is for large or long-term expenses, other forms of loans such as unsecured loans or mortgage loans with more preferential interest rates will be the most suitable choice.

3. What are the costs and interest rates for unsecured loans via credit cards?

When taking out an unsecured loan via credit card, in addition to paying attention to the loan limit, users need to clearly understand the costs and interest rates involved to choose a loan that suits their financial ability.

3.1. Interest rates for unsecured loans via credit cards

Interest rates for unsecured loans via credit cards usually range from 1,5% - 2,5% per month, depending on bank regulations and customer credit history. This is a quite high interest rate compared to other forms of loans. Therefore, users need to consider their ability to pay before borrowing.

For example: When borrowing 10,000,000 VND and applying an interest rate of 2% per month, in the first month the user will have to pay 200,000 VND in interest. In the second month, the amount to be paid is (10,000,000 + 200,000) * 2% = 204,000 VND. If you borrow for 6 months, the total interest payable will be 1,261,624 VND, not including other fees.

3.2. Types of fees when borrowing a credit card

In addition to high interest rates, the process of borrowing via credit card may include many accompanying fees as follows:

• Procedure fee: Dranges from 1% - 3% of the total loan amount or a fixed amount (from 200,000 - 500,000 VND) depending on the bank. Some banks may waive procedure fees to attract customers.
• Late payment fee: The penalty fee is usually 3% - 5% of the late payment amount, minimum from 100,000 - 200,000 VND.
• Early loan repayment fee: Some banks may charge a fee when closing the loan before the agreed term to compensate for the cost of lost interest, with a fee of about 1% - 4% of the remaining amount. Some banks may waive the fee if the loan period has passed a certain period (for example, after 12 months).

Depending on each bank's regulations and loan agreement, users may have to pay various additional costs. Therefore, before deciding to borrow a credit card, carefully review the terms related to costs to avoid incurring unexpected costs later.

4. Conditions and necessary documents to borrow a credit card

To borrow via credit card, users need to meet some basic conditions and fully prepare the following documents as required by the bank:

4.1. Basic conditions for borrowing via credit card

To qualify for a credit card loan, users need to ensure the following conditions:

• Be a Vietnamese citizen
• From 21 years old or older.
• Own a credit card from the lending bank
• Have permanent residence or workplace in the lending bank area
• Stable monthly income
• Good credit history, no bad debt.

Some banks may require users to have a minimum credit card limit of 15 million or more to get a loan.

4.2. Documents needed to prepare when borrowing a credit card

To borrow via credit card, users need to fully prepare the following documents:

• Personal documents such as ID card/CCCD or valid passport.
• Additional documents required by the bank (may include driver's license, diploma, professional certificate...).
• Permanent residence or temporary residence card.
• Documents proving income (labor contract, salary statements for the most recent 3 - 6 months or documents related to other sources of income).

5. Experience when borrowing via credit card

Borrowing via credit card can help you quickly solve your financial needs, but to use it effectively and avoid risks, please refer to the following experiences:

• Choose a reputable financial institution: Choose a reputable bank or financial institution that is transparent about interest rates, costs and loan terms to avoid risks.
• Only borrow when absolutely necessary: Clearly define the purpose of the loan and consider your financial ability, avoid borrowing money for unnecessary spending.
• Payment on time: Make sure to repay the loan on time to avoid penalty fees and affect your ability to borrow money in the future.
• Take advantage of promotional programs: Keep an eye on incentive programs, interest rate reductions or loan conversion fees from the card-issuing bank to save costs and benefit more from these services.

6. Borrow a credit card at SeABank

Southeast Asia Commercial Joint Stock Bank (SeABank) is one of the banks with top reputation and service quality in Vietnam. SeABank is always among the top most popular banks in Vietnam thanks to its professional and modern services with flexible credit products and attractive incentives, meeting customers' financial needs quickly and conveniently.

6.1. Why should you borrow a credit card at SeABank?

As a healthy credit institution with a modern technology platform and professional management system, SeABank is a reliable choice for those in need of credit card loans. Advantages of borrowing credit cards at SeABank:

• Reputable bank, wide network: HThanks to 180 transaction points nationwide, convenient for transactions and dedicated customer support anytime, anywhere.
• Flexible and attractive loan limits: At SeABank, customers can borrow an amount that suits their personal needs and flexibly based on their credit card limit.
• Competitive interest rates: SeABank commits to preferential interest rates, helping customers save on loan costs and control personal finances effectively.
• Long-term loan period: Loans are allowed for up to 5 years, helping to reduce the financial burden for customers.
• Simple procedures, quick application review: Automated banking services meet international standards to help customers complete procedures quickly and receive disbursement as soon as possible.

6.2. Instructions on how to borrow via credit card at SeABank

When borrowing credit at SeABank, customers can borrow online on the SeAMobile application or register for a loan directly at the bank's transaction point.

Method 1: Register for a loan online via the SeAMobile application

• Step 1: Log in to the SeAMobile application.
• Step 2: Select "Credit card loan"/"Loan", fill in all information and Submit documents as requested.
• Step 3: Confirm the request and wait for a response from the bank. Customer records will be received, verified and appraised by bank staff.
• Step 4: Sign the loan contract online and wait for disbursement.

Method 2: Register directly at the bank

• Step 1: Go to the nearest SeABank branch, bring all necessary documents such as ID card/CCCD, credit card statement, and proof of income.
• Step 2: Get advice from bank staff, fill in the credit card application and complete the application.
• Step 3: The customer's profile will be received, verified and appraised by bank staff.
• Step 4: If the application meets the requirements, the customer signs a credit card loan contract and waits for disbursement.

Note when borrowing credit cards at SeABank

• Make sure your credit card limit is sufficient to meet the bank's loan regulations.
• Prepare all necessary documents for transactions to be able to complete procedures quickly.
• Contact SeABank immediately if there is a delay in disbursement or other problems while using the service.

For more details, please contact the hotline or go to the nearest SeABank transaction counter.

7. Frequently asked questions when borrowing credit cards?

Here are answers to some common questions when applying for a credit card loan:

7.1. How much money can you borrow from a credit card?

Credit card loan limits usually depend on the card's credit limit and the bank's policy. Typically, users can borrow a maximum of 50% to 90% of the available credit limit, depending on credit history and repayment ability.

7.2. Are there any hidden or additional fees when borrowing?

Credit card loans may come with fees such as application processing fees and cash withdrawal fees,... However, these fees are disclosed in the bank's terms and conditions. To avoid unwanted fees, users should read the contract carefully and ask clearly about fees before borrowing.

7.3. How long does disbursement usually take?

Disbursement time when borrowing a credit card is usually very fast, from just a few minutes (when borrowing online via the bank's mobile banking application) to 1 working day (when registering for a loan at a transaction point), depending on the process of each bank.

7.4. How long does it take for credit card debt to become bad debt?

If the credit card balance is not paid after 90 days from the due date, the bank will report this situation to the CIC system. At this time, the user will be classified as bad debt. Bad debt seriously affects your credit reputation and ability to borrow money in the future.

7.5. How is a credit card loan different from an overdraft loan?

A credit card loan is a form of borrowing based on the credit limit available on the card and does not require collateral. Meanwhile, an overdraft loan is an amount of money the bank grants in advance to your payment account, allowing users to spend more than the current balance and repay it as soon as there is cash flow into the account. Overdraft loans can be unsecured or mortgaged depending on the specific type of loan. In addition, interest rates on credit cards are often higher than on overdraft loans.

In short, credit card loans are a quick and convenient financial solution, helping users make payments and cover consumer expenses very well. However, credit card loans often have high interest rates and many associated costs. Before deciding to borrow, make sure you have the ability to repay on time to optimize the benefits from this form of loan.