How is the interest of China Merchants Bank credit card calculated?

If the loan is not repaid in full, the bank will charge an interest of five ten thousandths (0.05%) per day.

For a consumption of 3,038 yuan, the minimum repayment is 303.8 yuan (10% of the total amount due). Regardless of whether you repay 400 yuan or 500 yuan, it exceeds the minimum repayment amount and will not incur late payment fees or bad debts. Credit record, but the unpaid portion will still be charged interest at the standard of five ten thousandths (0.05%) per day.

Start calculating interest. If the repayment due date is May 20, the amount will be 2,988 yuan on April 29 and 50 yuan on May 3.

The interest generated in the first month is: 2988×0.05%×22 days=32.87 yuan, 50×0.05%×18 days=0.45 yuan. The number of days calculated here is the date from the date of consumption to the date of repayment. It is calculated based on your own repayment date, and the fluctuation should not be large. After paying 1,000 yuan, there is still 3038+32.87+0.45-1000=2071.32 yuan left to repay;

The interest generated in the second month is: 2071.32×0.05%×30 days (calculated in natural months) ) = 31.07 yuan. If you repay another 1,000 yuan, there will be 2,071.32+31.07-1,000 = 1,102.39 yuan left to repay. By analogy, since the amount is not very large, the interest is not particularly high.

Extended information

The amount of interest depends on three factors: principal, deposit period and interest rate level.

The calculation formula for interest is: Interest = Principal X Interest Rate From now on, personal income tax on savings deposit interest will be temporarily exempted. Therefore, interest on savings deposits is currently exempt from interest tax.

Factors that generate interest:

1. Delayed consumption

When a lender lends money, it is equivalent to delaying the consumption of consumer goods. According to the principle of time preference, consumers will prefer current goods to future goods, so positive interest rates will appear in the free market.

2. Expected inflation

Most economies will experience inflation, which means that an amount of money will buy fewer goods in the future than now. Therefore, the borrower needs to compensate the lender for losses during this period.

3. Substitute investments

Lenders have the option to put their money in other investments. Due to opportunity costs, lenders who lend money are giving up possible returns on other investments. Borrowers compete with other investments for this funding.

4. Investment risks

The borrower is at risk of bankruptcy, absconding, or non-payment of debt at any time. Lenders need to charge additional money to ensure that in these circumstances, they are still Compensation is available.

5. Liquidity preference

People would prefer that their funds or resources can be traded immediately at any time, rather than requiring time or money to retrieve them. Interest rates also compensate for this.

Baidu Encyclopedia--Interest

Baidu Encyclopedia--China Merchants Bank Credit Card

How is the interest of China Merchants Bank Credit Card calculated?

Credit Card Interest is generally calculated by Determined by the usage method, there are currently three main types of interest charges for China Merchants Credit Cards:

1. Cash withdrawal interest: The interest for cash withdrawal is 0.05% daily interest. For example, if you withdraw 3,000 yuan in cash, the interest will be calculated starting from the date of withdrawal. Then the daily interest is 3000×0.05%=1.5 yuan.

2. Minimum repayment interest: According to national regulations, the minimum daily repayment interest is 0.05%. For example, if you spend 3,000 yuan, the minimum repayment is generally 10%, and your minimum repayment is 3,000×10% = 300 yuan, the minimum repayment is 300 yuan, and the daily interest is (3000-300) × 0.05% = 0.85 yuan.

3. Interest on credit card consumption: No interest will be charged for normal repayment, but if you repay overdue, interest will be calculated from the time when the consumption is recorded, and late payment fees will also be incurred, so you must pay off your credit card in time. Avoid personal financial stress.

A credit card, also called a credit card, is a credit certificate issued by a commercial bank or credit card company to consumers with qualified credit.

It takes the form of a card with the issuing bank's name, validity period, number, cardholder's name and other contents printed on the front, and a magnetic stripe and signature strip on the back. Consumers holding credit cards can shop or consume at specially designated commercial service departments, and then the bank will settle the accounts with merchants and cardholders. Cardholders can overdraft within the prescribed limit.

Main features

1. Credit card is one of the fastest growing financial services today. It is an electronic currency that can replace traditional cash circulation within a certain range;< /p>

2. Credit cards have both payment and credit functions. Cardholders can use it to purchase goods or enjoy services, and can also obtain certain loans from card issuers by using credit cards;

3. Credit cards are high-tech products that integrate financial services and computer technology.

4. Credit cards can reduce the use of cash;

5. Credit cards can provide settlement services, facilitate shopping and consumption, and enhance a sense of security;

6. Credit cards It can simplify the collection procedures and save social labor;

7. Credit cards can promote product sales and meet social needs.

Financial Management Strategy

1. Control the number of credit cards and only have enough.

Once there are too many credit cards, it is easy to make mistakes or forget the repayment date of the card. Issues such as the credit limit of that card are difficult to manage and can easily lead to late repayments and leave a bad record. Moreover, if you swipe multiple cards to earn points, the points will be too scattered, which is not conducive to redeeming gifts. Therefore, it is recommended that only 1 to 2 credit cards are enough.

2. Keep the credit card receipts

Most credit card holders do not care about the receipts and will not keep them. Most of them throw them away. This is a very bad habit. In fact, retaining credit card vouchers not only facilitates the monthly summary of consumption records to analyze and optimize consumption habits, but also helps improve the rationality and transparency of credit card consumption, so that the card can be swiped clearly. Moreover, many people do not set passwords on their credit cards, and carelessly discarding the credit card credentials may lead to credit card theft.

For security reasons, it is best to keep the credit card receipt after swiping the card to make yourself aware of it and develop good credit card financial management habits.

3. Reduce cash withdrawals

Credit cards have two functions: overdraft and cash withdrawal, but cash withdrawals require a certain percentage of handling fees, and even if you deposit your own money into it, you will be charged. Therefore, it is not cost-effective to use or use it as a passbook.

4. Choose the right credit card

The choice of credit card is very important. Nowadays, many commercial institutions have bundled cooperation services with banks. For example, you can apply for a joint name between a department store and the corresponding bank. With a credit card, you can spend points here as a member and get discounts; or some cards can provide discounts at designated merchants, including dining, movies, towing services, etc. There are various categories, and you can choose freely according to your needs. Credit cards should be used wisely and chosen wisely.

How is the interest on China Merchants Bank’s credit card borrowing calculated?

China Merchants Bank’s credit card interest generally has the following three calculation methods:

1. Cash withdrawal interest: Withdraw money If so, a daily interest of 0.5% of the cash withdrawal amount will be generated every day until it is paid off, with compound interest calculated on a monthly basis.

2. Minimum repayment interest: The remaining balance after the minimum repayment will be charged a daily interest rate of 0.5% per day.

3. Interest on card consumption: As long as the payment is made normally after using a China Merchants Bank credit card, interest will not be charged. However, if the repayment is overdue, interest will be calculated from the time the consumption is recorded, and late payment fees will also be incurred. .

Minimum repayment amount = 10% cash advance principal + 10% non-cash advance transaction principal + 100% fees + 100% interest + 100% excess consumption + 100% minimum repayment in the previous period The unpaid portion + 100% of the single installment amount. As long as you repay the minimum amount of your bill before the payment due date, you will not incur late payment fees and will not affect your personal credit. Please rest assured. However, recurring interest will accrue. All consumption in the current period will accrue interest from the recording date (usually the second day after consumption), with a daily interest rate of 0.05% until you pay it off in full.

If you cannot repay all the money, you need to use the minimum repayment method.

1. Minimum repayment amount 10%

2. Revolving interest: Interest is calculated at 0.05% daily from the date the card is swiped until the bill date.

For example: If 1,000 yuan is swiped on the 1st of this month and the billing date is the 22nd, then the minimum repayment amount for this month is only 10% of the card amount, which is 100 yuan, and the bill for the next month is Repay before 10 days. Assuming that the card is not swiped, on the billing date of the 22nd of the next month, the bill will be added with recurring interest, the amount is (321)0.05%1000=25.5 yuan, the bill amount will become 925.5 yuan, and the minimum repayment amount is 925.5 =115.5 yuan.

The 90 yuan is 10% of 900, and the 25.5 yuan is the recurring interest. If the bill amount is not repaid in full on time with a China Merchants Bank credit card, interest will be charged based on the full consumption amount from the date the card is swiped. The interest rate is 0.05% per day, which is approximately 18% for the whole year.

How to calculate China Merchants Bank credit card interest?

As of December 23, 2019, according to new regulations, the minimum repayment ratio for China Merchants Bank credit card consumption transactions in bills from December 2019 and later will be adjusted from 10% to 5%, with recurring interest The calculation method is as follows (the following example is calculated based on the new standard of the minimum repayment amount, and the recurring interest is subject to what is listed in the actual bill):

The cardholder’s bill date is the 22nd of each month, in April On the 4th, the card was used to spend 1,700 yuan, and the consumption was recorded on April 5. The bill on April 22 will show that the "amount due for the current period" is 1,700 yuan, and the "minimum repayment amount" is 85 yuan.

If the cardholder only repays 1,000 yuan on May 5, the due payment date, the interest to be paid as of that day will be shown on the bill on May 22, which is the revolving credit principal of 1,700 yuan. 17 days of interest and 13 days of interest on the remaining 700 yuan principal after repayment:

1,700 yuan × 0.05% × 17 days (April 5-April 21) + 700 yuan × 0.05 % × 13 days (May 10-May 22) = 14.45 yuan + 4.55 yuan = 19 yuan.

Extended information:

1. Interest-free period

Refers to the period from the bank accounting date to the due date of consumption transaction repayment. The period of time during which all payables are repaid before (inclusive) the due payment date and enjoy interest-free treatment. If the cardholder fails to repay in full in the current period and the unpaid amount does not exceed 10 yuan or 1 US dollar, no additional interest and liquidated damages will be charged for consumer transactions that can enjoy interest-free treatment.

The maximum period of interest-free repayment is 50 days, unless otherwise agreed between the card issuer and the applicant, but the maximum period of interest-free repayment shall not exceed the maximum period of interest-free repayment required by relevant laws and regulations. .

2. Revolving credit

Revolving credit is a small unsecured loan with daily interest. Cardholders can determine the repayment amount based on their financial situation before the current credit card bill due date. When the cardholder's repayment amount is equal to or higher than the minimum repayment amount on the current note, but less than the current amount due, the remaining deferred payment amount is the revolving credit balance.

If you choose to use revolving credit, you will not enjoy the interest-free repayment period in the current period.

3. Revolving interest

For bills issued in December 2019 and later, the minimum repayment ratio for consumer transactions is adjusted from 10% to 5%.

Example: The cardholder's bill date is the 7th of each month. If he spends 2,000 yuan with his card on April 1st, and the consumption is recorded on April 2nd, the bill on April 7th will show "Amount due for the current period" is 2,000 yuan, and the "minimum repayment amount" is 100 yuan.

If the cardholder only repays 100 yuan on April 25, the due payment date, the interest to be paid as of that day will be shown on the bill on May 7, which is the revolving credit principal of 2,000 yuan. 23 days of interest and 13 days of interest on the remaining 1,900 yuan principal after repayment:

2,000 yuan × 0.05% × 23 days (April 2-April 24) + 1,900 yuan × 0.05 % × 13 days (April 25-May 7) = 23 yuan + 12.35 yuan = 35.35 yuan.

Note: The above example is based on the new standard of minimum repayment, and the recurring interest is subject to what is listed in the actual bill.

China Merchants Bank Official Website - Credit Card Frequently Asked Questions

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