first of all, according to the relevant laws and regulations of China, there are clear restrictions on the setting of credit card interest. According to the Savings Regulations of the People's Republic of China, savings financial institutions in China must follow the relevant national interest rate policies when setting interest rates, and cannot raise interest rates at will. However, as a consumer credit tool, credit card has relatively flexible interest rate setting, and there is no clear upper limit of interest rate, which is related to factors such as repayment period and credit line.
Secondly, the main reason why the interest of credit card is higher than the principal is the compound interest calculation method of credit card. Credit card interest is calculated according to the annual interest rate and compound interest, that is, interest is calculated according to the remaining amount after each repayment. If the cardholder only pays the minimum repayment amount, the remaining unpaid principal will continue to calculate interest, and the interest generated will be included in the next billing cycle. Due to the compound interest effect, the unpaid principal will accumulate more interest, resulting in higher interest than the principal.
to sum up, it is legal that the interest of a credit card is higher than the principal. Although it may be unreasonable or unfair that credit card interest is higher than the principal, it does not violate the provisions of national laws and regulations. When using a credit card, the cardholder should plan and arrange the repayment reasonably according to his own economic situation to avoid the burden caused by the high accumulation of interest.
Extended information:
In addition to the compound interest calculation method, another reason why the interest of credit card is higher than the principal is that there are extra expenses such as late payment fees and withdrawal fees. If the cardholder fails to repay the loan on time, he will be charged a late fee, which will further increase the interest expense of the credit card. In addition, some credit cards will charge a handling fee at present, which further increases the cardholder's repayment cost. Therefore, when using credit cards, cardholders need to understand and use credit cards reasonably to avoid unnecessary expenses and interest expenses.
Summary:
It is legal that the interest of a credit card is higher than the principal, but this does not mean that it is not controversial. The main reason why the interest is higher than the principal is the compound interest calculation method of credit card and the existence of extra expenses. Cardholders need to make reasonable planning and repayment when using credit cards to avoid high accumulation of interest.
more than p>3 words, the above is the answer.