When the credit card overdraws a lot and it is difficult to repay in full at present, then the minimum repayment amount can be used. The minimum repayment amount is generally the minimum repayment amount after the bill is issued. For example, when the bill comes out and you spend 1 ,000, then the minimum repayment amount is 1 ,000.
Although this can alleviate the temporary urgency and avoid the current overdue, it is also a temporary solution, and it is better to use it less when it is unnecessary.
Why not recommend using the minimum repayment amount?
The minimum repayment interest of the first credit card is relatively high.
The purpose of issuing credit cards is to make money. Every time you swipe your card, the bank will make a profit, which is only part of it. If you use the minimum repayment amount, the bank will not report to the Credit Information Center of the People's Bank of China according to your overdue date, but because you only pay the minimum repayment amount, the remaining balance will generate certain interest.
The calculation of this interest, from the day you spend it, is about 15000 yuan per day. At the same time, you can't enjoy the "credit card interest-free period" and it is calculated according to compound interest. If your bill is not paid off, the interest will be included in the next billing cycle.
The second minimum repayment amount may affect the decline of credit line or even block the frozen credit line.
The original intention of our bank to issue credit cards is to use them safely before making money. Banks need to control risks while making money. If you can't repay in a short time, it's no problem to choose the minimum repayment amount. After all, as long as you repay 65438+ 00% of the bill, you can avoid overdue.
However, if you always make the lowest repayment, the bank will think that your repayment ability is limited and the risk is relatively high. You can reduce your credit card limit, freeze your credit card limit or even close your card. This is not to scare everyone.
To sum up, the minimum repayment amount of credit card can only be said to have slightly eased the repayment pressure and avoided the formation of personal credit stains, but it is not a long-term solution. Never use the minimum repayment amount to pay off the credit card bill until the critical period.
The interest on the minimum repayment amount is still very high (annualized interest rate is as high as 18%). Therefore, although the credit card is good, you must maintain good consumption habits and don't overdraw. Wouldn't it be sad to work hard for the bank?
Finally, it is suggested that:
If you are not a person with strong self-control, don't rob Peter to pay Paul, or borrow other loans to repay it, which will put you in an infinite loop. Remember to cancel the credit card after the minimum payment of the credit card or the payment of the credit card bill is paid off, because the credit card is not suitable for you to use, or spend as much as you earn.
Hope to adopt. Good luck.