How to calculate the minimum credit card repayment interest

The interest after the minimum credit card repayment is usually calculated based on the daily interest rate of 0.5%. After the minimum repayment is made, interest will be accrued on all consumption in the current period from the billing date until all payments are made. Although the interest on the minimum repayment is not high, it is still an additional payment. If you can afford it, it is better to repay it in full.

What is a credit card?

Credit card (English: creditcard), also called credit card. It is a non-cash transaction payment method and a simple credit service.

A credit card is generally a special carrier plastic card with consumer credit that is 85.60 mm long, 53.98 mm wide, and 1 mm thick. It is issued by the bank to individuals and organizations, and can be used to shop, consume, and deposit and withdraw cash from the bank. It is in the form of a card with the name of the issuing bank, validity period, number, cardholder name, etc. printed on the front and a magnetic card on the back. strip, signature strip.

Credit cards are issued to cardholders by banks or credit card companies based on the user's creditworthiness and financial resources. Cardholders do not need to pay cash when making purchases with the credit card, and repayment will be made on the billing date (English: billing date).

On April 15, 2016, the central bank issued the "Notice of the People's Bank of China on Matters Related to Credit Card Business", canceling late payment fees on credit cards, introducing liquidated damages, and prohibiting over-limit fees. The new regulations were implemented in January 2017 It will be officially implemented on the 1st.

The debit card is an ordinary savings card. The account attribute is a current deposit account, which can be used for consumption, ATM deposits and withdrawals, etc.; the credit card can be used for consumption, ATM deposits and withdrawals, etc. The biggest advantage is that it can Overdraft (with a certain credit limit)

Generally, bank cards are divided into two types: credit cards and debit cards.

Credit cards are divided into credit cards and quasi-credit cards. A credit card refers to a credit card in which the card-issuing bank gives the cardholder a certain credit limit, and the cardholder can consume within the credit limit first and repay later. A quasi-credit card refers to a credit card in which the cardholder first deposits a certain amount of reserve fund as required by the bank. When the reserve fund is insufficient to pay, the cardholder can overdraw within the credit limit specified by the card-issuing bank.

Debit cards are divided into transfer cards, special cards and stored-value cards according to different functions. Debit cards cannot be overdrawn. Debit cards have the functions of transferring money, depositing and withdrawing cash, and spending money. A special card is a debit card used in a specific area and for special purposes (referring to purposes other than department stores, restaurants, and entertainment industries). It has the functions of transferring funds, depositing and withdrawing cash. A stored-value card is a prepaid wallet-style debit card in which the bank transfers funds to the card for storage at the request of the cardholder and directly deducts funds from the card during transactions.

How to calculate the remaining interest after paying the minimum payment on a credit card

1. If you only pay the minimum payment on a credit card, the unpaid portion will no longer enjoy the interest-free period. Pay interest. Credit card interest is calculated from the date the consumption is recorded. Five ten thousandths (i.e. 0.05%) of the consumption amount is charged every day, and is calculated on a monthly compound interest basis. The calculation formula for charging interest is (0.05% of the principal, the number of days from the consumption date to the repayment date of the current period, the unpaid amount of 0.05% of the principal, the number of days from the repayment date of the current period to the next billing date). For example, if the 5th is the billing day and the 23rd is the repayment day, the amount due on the bill on March 5 is 1,000 yuan, and the minimum repayment is 100 yuan on the repayment day, then the interest before the next repayment date will be 17.85 yuan. At the same time, the minimum monthly repayment interest on the credit card will also be calculated based on monthly benefits until the cardholder pays off the balance in full. Because you choose the minimum repayment, the interest rate is actually very high. Unless there are special circumstances, it is better to repay the loan in full on the repayment date.

2. Minimum credit card repayment This repayment method can indeed solve the user's temporary difficulties and save users from overdue payments, but if the minimum repayment is used for a long time, it will also cause many adverse consequences to the user.

1. Unable to enjoy the interest-free period. Credit cards provide each user with repayment exemption, but if the user repays the minimum payment amount, he or she cannot enjoy the interest-free period service. Daily interest is generally charged at 0.05% of the total amount of the bill, and is calculated based on compound interest. The long-term use of minimum repayments will not only not alleviate the repayment pressure of credit card users, but will also cause repayment burdens, and the monthly repayment costs will increase.

2. There is a risk of overdue payment.

If the minimum repayment amount is used for a long time, the user will have to pay more repayment amount in the future. Once the minimum repayment amount cannot be guaranteed, it is likely to be overdue, which will affect the personal credit of credit card users.

3. The credit card limit is likely to be reduced. If you use a credit card for a long time, the minimum repayment will make the bank feel that the credit card user's repayment ability is insufficient. In order to avoid risks, the bank may reduce the credit card user's limit.

How to calculate the interest on the minimum repayment of a credit card?

After the user selects the minimum repayment, the bank will charge 0.05% on a daily basis for the remaining unpaid portion of the credit card starting from the due date of repayment. For example, the original monthly repayment amount is 11,000 yuan. After choosing the minimum repayment and repaying 1,100 yuan, the daily interest is 0.05%9900, which means that the daily repayment amount is 4.95 yuan and the monthly repayment amount is 148.5 yuan.

Although the minimum payment is not overdue, the interest rate is higher and is only suitable for emergencies.

According to Article 7 of the "Regulations on the Supervision and Administration of Credit Card Business of Commercial Banks": A credit card refers to a credit card that records cardholder account information, has bank credit lines and overdraft functions, and provides cardholders with relevant banking services. All types of media.

Credit cards stipulated in the relevant laws of our country ("Interpretation of the Standing Committee of the National People's Congress on Relevant Credit Card Regulations") refer to credit cards issued by commercial banks or other financial institutions with the functions of consumption payment, credit loans, transfer settlement , cash deposit and withdrawal and other full or partial functions of the electronic payment card. On December 1, 2017, the "English Translation and Writing Standards in the Public Service Field" was officially implemented, stipulating that the standard English name of credit cards is CreditCard.

Credit card consumption is a non-cash transaction payment method. There is no need to pay cash when consumption, and repayment will be made on the billing date (BillingDate).

Credit cards are divided into credit cards and quasi-credit cards. Credit cards refer to credit cards in which the cardholder has a certain credit limit and can consume within the credit limit and then repay; quasi-credit card It refers to a quasi-credit card in which the cardholder deposits a certain amount of reserve fund as required. When the reserve account balance is insufficient to pay, the cardholder can overdraw within the prescribed credit limit. The so-called credit card generally refers to a credit card only.

Starting from January 1, 2021, the credit card overdraft interest rate will be determined independently by the card issuer and the cardholder through independent negotiation, and the upper and lower limit management of credit card overdraft interest rates will be cancelled. The daily interest rate is 0.7 times 5/10,000).

This ends the introduction on how to calculate the interest after the minimum credit card repayment, how to calculate the minimum credit card interest, and how to check whether it exceeds 24. I wonder if you have found the information you need. ?