After getting a credit card, the cardholder will always buy a lot of things inadvertently. Over time, the amount of one-time repayment is getting higher and higher. Last month, after the credit card bill could not be paid off in one lump sum on the repayment date of a certain month, you can only choose credit card installment repayment. Like banks applying for bill installment, this is the most common installment. So, what are the benefits of credit card installment?

1, which is beneficial to cash withdrawal by credit card: there is an installment fee for bills, and banks will certainly expect cardholders to handle installment affairs frequently. The underlying rule is that after the cardholder handles the bill by stages and asks the bank for cash withdrawal by credit card, the bank will be more willing to approve it and the success rate of cash withdrawal will be improved.

2. Relieve the repayment pressure: When a single bill is too high, the cardholder will have greater pressure to repay in full. Credit card installment can decompose large consumption into several months, which is equivalent to delaying consumption expenditure and helping to reduce the repayment pressure of borrowers.

3. Arrangements conducive to funds: credit card installment repayment can use the remaining funds to purchase goods in advance, reducing the pressure of purchase and payment; The phased and planned use can arrange reasonable procurement and gradually complete the procurement plan.

Handling credit card installment will also affect the later use of cards and loans. If the installment is always handled and the transaction amount is not high, banks will doubt their spending power and repayment ability. At this time, handling credit cards or loans will have a certain impact.

What are the advantages and disadvantages of credit card bill installment?

Benefits of credit card bill installment:

1. Relieve the repayment pressure: The biggest benefit of handling credit card installment business is definitely to reduce the burden. When the single-phase bill is too high, the pressure on cardholders to repay in full will be even greater. The bill can be divided into several months by stages, and the cardholder's repayment pressure will be less. Imagine that if you ask your parents to borrow it, your family will be worried; If you borrow it from a friend, you owe a favor. In the future, it is better to change the meal with the interest of the bank.

2. It helps to increase the credit card limit: banks operate through fees, interest and annual fees. There is an installment fee for handling credit card bills, so that banks can make money. Of course, banks will hope that cardholders can handle installment business frequently. The underlying rule is that after the cardholder applies to the bank for credit card withdrawal, the bank is more willing to approve it, and the success rate of cash withdrawal will increase.

3. Credit card bills are discounted by installment: banks will hold some credit card discount activities from time to time, among which credit card bills are discounted by installment. At this time, you can reduce certain interest or handling fees, which is quite cost-effective.

4. Credit card value-added discount: Bank credit cards generally have special discount merchants, and shopping malls can give gifts at a discount or in full, while the accumulated points can be exchanged for gifts, airline miles or cash in the future.

Disadvantages of credit card bill installment:

1, bear the installment fee: every bank has to charge a certain fee for credit card installment business, and different banks charge different fees. Take the recruitment behavior as an example, the handling fee of 12 is 0.66%, and the longer the staging time, the higher the handling fee will be. Then, if the installment bill is 5000 yuan, you need to bear the installment fee of 33 yuan every month, and the fee for 12 is 396 yuan. And the handling fee will not be reduced, and the advance payment will also be deducted.

2. Reduce the available amount: As the credit card amount is fixed and the bill is phased, the amount of flexible use will be reduced, which will affect the next consumption.

3, easy to lead to excessive consumption: Because it takes a long time to pay back the money, and only a little each month, the repayment method of "spending 240 yuan every month and only paying back 20 yuan" is easy to give cardholders an illusion that spending money casually is easy to repay, so it is easy to lead to excessive consumption, high bills, and people forget their own consumption.

What are the advantages and disadvantages of credit card installment repayment?

The advantages of credit card installment: First, reduce the pressure of repayment or consumption; When we usually spend money, the transaction amount may be relatively high, which will make it difficult for us to pay in full for a while. If we pay by installment, our consumption pressure will be much reduced. For example, when buying an Apple mobile phone, many people will buy it in installments. Second, it is conducive to credit card withdrawal; Credit card limit can be used for our consumption, so credit card limit is very important. If credit cards are often phased, banks will make a profit, which is why banks always encourage customers to phase. And this is also conducive to the increase of our credit cards.

Disadvantages of credit card installment payment; First, you need to pay a certain handling fee; Credit card installment repayment needs to pay a certain handling fee, which is inevitable whether it is installment repayment or installment payment. And the longer the number of installments, the more fees need to be paid. Second, it has a certain impact on handling cards and loans; Although staging can relieve our pressure, if you keep staging, for example, when the transaction or bill amount is not high, it is easy for banks to question your spending power and repayment ability, which will also have a certain impact on your card or loan. So a proper performance is enough.

Credit card installment payment refers to the process that when the cardholder uses the credit card to make a large amount of consumption, the bank pays the consumer funds of the goods (or services) purchased by the cardholder to the merchant in one lump sum, and then the cardholder repays the money to the bank in installments and pays the handling fee. According to the cardholder's application, the bank deducts the consumption funds and handling fees by stages through the cardholder's credit card account, and the cardholder repays according to the monthly recorded amount. At present, the actual annual interest rate of most credit card installment products on the market is around 17%, and some are even higher, which is almost equal to the annual interest rate given by the bank multiplied by 2. The business staff of the credit card center of another credit card joint-stock bank said that sometimes the credit card installment payment is calculated separately from the interest rate, but the actual annualized interest rate is rarely clear in marketing. Citi official website can support credit card prepayment by installment: you can choose to settle the amount to be repaid in advance in one lump sum before the installment expires, and the remaining principal and other handling fees will be recorded in the latest installment bill. For example-can credit cards be repaid in advance by installments? If you applied for 12 credit card bill installment from Citibank before, but want to settle the remaining installments in one lump sum in the sixth installment, then when you choose to settle in the sixth installment, you need to pay the total amount of the remaining installment principal plus the installment fee required for the remaining six installments. In the process of repayment, it should be noted that prepayment cannot be exempted from handling fees.

Why are credit cards automatically phased?

Card friends often encounter such things. Their credit cards are not phased, but automatically phased by the bank. In fact, this kind of thing is more common, so why is the credit card automatically phased?

1, customer service guidance: for example, customer service calls and invites you to apply for installment through various slogans. It is common that the current installment rate is 30% or 20%, or the number of installments is longer, such as the longest 36 and the longest 24. If you are fooled into agreeing, I will apply for automatic staging.

2. Automatic installment of the full amount: When applying for a credit card, the terms are numerous and complicated, and few people will read it carefully. Maybe any bar has an automatic installment clause. If you don't check it carefully, as long as your consumption reaches the standard, it will be automatically phased.

3. We handle automatic installment credit cards: At present, many banks, such as China Merchants Bank, China Construction Bank, Xingye and China Everbright, have launched automatic installment credit cards with the function of automatic installment. Any consumption generated after processing, regardless of the amount, will be automatically phased.

In short, automatic credit card installment is nothing more than these three situations. But in addition to the first case, the installment-related terms are generally listed in the application terms of credit cards, so you need to know the terms before applying for credit cards.

Why are credit cards automatically phased? These three situations must be understood.

Card friends often encounter such things. Their credit cards are not phased, but automatically phased by the bank. In fact, this kind of thing is more common. If it is found that the credit card is inexplicably divided into stages, it may be caused by three situations. Let's take a look together.

Why are credit cards automatically phased?

There are two types of automatic credit card installment. One is that no matter how much money is spent, it will be automatically divided into fixed periods for repayment. The other is that when the consumption amount reaches a certain standard, it will be phased. There are usually three reasons for these two situations:

1, induced by customer service:

For example, the customer service calls you and invites you to apply for installment through various slogans, such as 30% or 20% discount on the installment rate, or the number of installments is long, such as the longest 36 installments, and the longest in other countries is only 24 installments. If you are fooled into agreeing, I will apply for automatic staging.

2. Full automatic installment:

When applying for a credit card, the terms are complicated and few people will read it carefully. Maybe any gala has an automatic staging clause. If you don't check it carefully, as long as your consumption reaches the standard, it will be automatically phased.

We have automatic installment credit card:

China Merchants Bank, China Construction Bank, Xingye, China Everbright and many other banks have launched automatic installment credit cards, which have the function of automatic installment. Any consumption generated after processing, regardless of the amount, will be automatically phased.

In short, automatic credit card installment is nothing more than these three situations. But in addition to the first case, the installment-related terms are generally listed in the application terms of credit cards, so you need to know the terms before applying for credit cards.

Why do banks encourage credit card installment repayment?

Banks can earn interest.

The bank asks you to pay in installments because you can earn interest from it. At the same time, it can also ensure that you can take the money out of the bank and return it on time. From this perspective, the bank is a choice to kill two birds with one stone.

Judge personal qualifications.

Of course, in addition to the above two, banks can also judge your qualifications.

Ok, according to your repayment situation, I will give you a credit card limit after analyzing the background data. For example, why do people often receive temporary credit card limits? It is because of your good record of repayment before consumption, and then further consumption.

Why do credit cards need to be launched in stages? Let's stop here.