Credit card installment payment refers to the process that the bank pays the consumer funds of the goods (or services) purchased by the cardholder to the merchant in one lump sum when the cardholder uses the credit card to spend a lot, so that the cardholder can pay the money to the bank in installments. The bank will deduct the consumption funds from the cardholder's credit card account according to the cardholder's application, and the cardholder will repay according to the monthly income.
At present, credit card segmentation is mainly divided into bill segmentation, cash segmentation and consumption segmentation. Each segmentation method has a different application and exchange rate:
Bill installment: after the credit card issues the bill of the current month, if the cardholder has the pressure to pay the bill in full, he can pay the total amount by installment. Many credit card bills claim to be exempt from installment payment, but they need a certain handling fee, and the handling fee rate varies according to the time limit of installment payment.
Cash installment: also known as cash installment, the owner of the credit card applies, and the card is issued to convert the amount of the owner's credit card into cash, which is transferred to the loan account designated by the owner and repaid by the owner within the specified period (month). Cash split is like a simple and quick short-term loan. After applying for cash split, the cardholder only needs to return the fixed principal and handling fee every month, and the handling fee rate of cash split is generally high.
Installment payment: If the cardholder spends a lot of money on the card, the cardholder can apply to the issuing bank for multiple installments. After the application is approved, the bank will charge the consumption to the cardholder's credit card account for multiple times.
Credit card installment can help cardholders solve the problem of capital turnover, and the application is fast and convenient. However, credit card segmentation seems to have only a monthly interest rate/exchange rate of about 0.7%, and the calculated actual annual interest rate often reaches an astonishing 15%. Therefore, it is suggested to choose full repayment as far as possible, develop a good consumption habit of unnecessary interest expenses, and spend by credit card within your own repayment range instead of becoming a slave.