Every holiday, banks have promoted the banner of "interest-free installment repayment". At the same time, citizens’ credit card consumption has also increased significantly. However, after the holidays, many citizens discovered when repaying their loans that the interest-free installment payment was not as favorable as it sounds, and the fees that should be charged were still collected. In fact, although credit card installment repayments are interest-free, they are not free of handling fees. Sometimes, the handling fees are even higher than the current bank loan interest.
According to interviews with reporters, many consumers mistakenly believe that "0 interest" means completely free. In fact, each bank will charge a handling fee of about 0.65 to 15. Moreover, there is also a difference between one-time collection and installment collection in the way of collecting handling fees. If consumers do not understand clearly, they are often prone to saving less money when repaying the loan, which may lead to a bad credit record after the payment is overdue.
In addition, interest-free does not mean that late payment fees are waived, which is often overlooked by many cardholders. During the National Day holiday, some banks will temporarily increase the credit card limit by 20. For example, the usual overdraft limit of 10,000 yuan will be temporarily increased to 12,000 yuan. At this time, cardholders must pay attention when repaying. If the overdraft is overdue, an over-limit fee of 5 will be charged.
Is interest-free installment payment by credit card really profitable?
Frequently Asked Questions about Installment Payment:
1. What fees are required for installment payment?
[Case] ??Mr. Lin: For the convenience of work, I really want to buy a laptop, but my funds are limited. If I pay it in installments, I will only spend a few hundred yuan a month, which is much less stressful. So, do I need to pay handling fees and interest if I pay in installments?
Business Daily: Most bank installment payment service fees are based on the length of the period, such as 3 periods, 6 periods, 12 periods, etc. Generally, the longer the term, the higher the handling fee standard. However, the longer the credit card installment period of China Construction Bank and Shanghai Pudong Development Bank, the lower the handling fee. For example, CCB's monthly handling fee for the 3-month term is 0.7%, and the monthly handling fee for the 6-month and 12-month terms is 0.6%. There are also some bank fees that are highest for the shortest period and the longest period, and lowest for the middle period. The Bank of Communications stipulates rates based on the amount rather than the number of installments. The larger the single amount of installment purchases, the lower the handling fee. For Agricultural Bank of China, the handling fee is fixed at 0.6% per month regardless of the consumption amount or the number of installments.
In addition, there are two ways for banks to collect handling fees. One is to collect handling fees on an average monthly basis, which is adopted by Agricultural Bank of China, China Construction Bank, etc.; the other is when paying the down payment. One-time collection, represented by ICBC and Bank of China.
In addition, some banks require advance application when choosing installment payment. For example, China Merchants Bank must conduct an evaluation on the cardholder before granting the installment amount and prescribed handling rate.
Although installment payments can ease the pressure of paying in one lump sum, the total price of the item purchased may be higher than the prevailing market price.
It should be noted that when using a credit card to pay for purchases in installments, interest is only waived if the cardholder repays the full amount on time. If repayment is not made on time or in full, interest will accrue. Once you choose to repay the minimum payment, you will also have to pay interest on the total transaction amount for that month. (Meng Fanxia, ??Beijing Business Daily)
2. How to calculate the credit card installment fee?
In the early days of the credit card installment business, banks often promoted it under the banner of "interest-free", and indeed many citizens were "fooled". In fact, interest-free is not free, it’s just called something different. Generally speaking, the one-year credit card installment fee is lower than the annual cash withdrawal interest of 18% and higher than the bank's one-year commercial loan interest of 5.31%. It is worth mentioning that commercial bank loan interest rates have been reduced many times, but the standards for credit card installment fees and cash withdrawal interest have rarely changed.
Although the credit card installment fee standards of each bank are different, the calculation method is roughly the same.
Assume that the installment amount is 1,200 yuan, divided into 12 installments, with each installment (monthly) repayment of 100 yuan, the handling fee is 0.6%/month, and the actual monthly deduction is 100 1200 × 0.6% = 107.2 yuan. If other factors are not considered, the convertible nominal annual interest rate is 7.2%. However, the cardholder does not always owe the bank 1,200 yuan. In the last month, he actually only owed the bank 100 yuan, but the bank still charged a handling fee of 1,200 yuan. . According to calculations, the true annual interest rate paid by cardholders is approximately 15.48%.
3. Should I go to a big bank or a small bank for installment payment?
Due to the different customer resources and brand maturity of various banks, their service fee levels are also different, or even quite different. Statistics show that small banks with low market share also have relatively low handling fees. For example, China Everbright Bank and Bank of Ningbo have three installment payment fees as low as 1.5%, which is 1.1 percentage points lower than China Merchants Bank and Minsheng Bank. Calculated in terms of annualized interest rates, the annualized handling rates of 18.09% of China Everbright Bank and Bank of Ningbo are also much lower than the 32.32% of China Merchants Bank.
Which installment is more cost-effective, any installment or installment with designated merchants?
Shopping in installments can reduce the pressure of repayment.
According to the reporter’s understanding, there are currently two credit card repayment methods on the market. One is to determine the installment payment when shopping, which is an installment payment from a designated merchant; the other is to call the credit card before repayment. Center, determined to be an installment payment, this is an arbitrary installment payment. Which of the two credit card installment payment methods is more cost-effective?
The handling fee for any installment payment is slightly higher, so you can shop as you like
It is understood that Bank of Communications is the first to launch a credit card for payment in any installment. With the dual-currency credit card, if the amount of a single card payment exceeds 1,500 yuan, you can call the customer service hotline two days after the transaction date and two days before the statement date to convert the consumption into 6 months, 9 months or 12 months. installment. Although this installment plan is also interest-free and cardholders will not incur any interest charges if they pay the repayment amount on time, the bank will charge a certain percentage of handling fees every month.
Specifically, the standard of handling fee is determined according to the total amount of installment payment required. The handling fee depends on the consumption amount, which is 0.72%, 0.7%, and 0.68% respectively. If you spend 6,000 yuan by swiping your card and repay it in 6 months, you will have to repay the arrears of 1,000 yuan and a handling fee of 43.2 yuan every month. The handling fee totals 259.2 yuan.
In comparison, with any installment purchase, shopping is not restricted by shopping malls and products, but the cost is slightly higher than installment payment at designated merchants.
Installment fees at designated merchants are low but shopping is restricted
The bank has designated merchants and products, and the cardholder will determine how many installments will be paid when swiping the card. Take China Merchants Bank as an example. The bank's credit card cooperates with merchants such as Gome, Suning, Industry and Trade, and can be paid in installments when purchasing any electrical appliance worth more than 1,500 yuan. Depending on the installment, a one-time handling fee of 2.5% or 4.5% will be charged. However, in shopping malls such as Wangfujing Department Store and Dayang Department Store, you can pay in installments for purchases (excluding gold) of up to 600 yuan, and the fees are free. Credit cards from China Merchants Bank, Bank of Communications and other banks offer this service.
Installment payment at designated merchants is lower than any installment plan, but the products and shopping malls that cardholders can purchase are limited. Cardholders who want to enjoy it in advance should not forget to estimate the cost and choose the most suitable installment plan. (Wuhan Morning News)
The secrets of installment payment costs of various bank credit cards
Among the many bank cards, which installment payment is the most cost-effective, and whose installment payment cost is the highest? According to calculations, the installment payment of Everbright Bank is the most favorable, and the installment payment of Bank of Communications is the most expensive.
It is understood that, taking 12 installments in 1 year as an example, most banks set the installment fee at 0.6% per installment.
The collection methods are divided into two types: collection per period and one-time collection when applying. The banks that use one-time collection mainly include Industrial and Commercial Bank of China, Industrial Bank (601166 Stock Bar, Quotes, Information, Main Trading), Bank of Beijing (601169 Stock Bar, Quotes, Information, Main Trading) , main trading), etc. Those who charge handling fees in each period include China Everbright Bank, Bank of Communications, China Guangfa Bank, Shenzhen Development Bank, China Construction Bank (601939 stock bar, quotations, information, main trading) (601939 stocks bar, quotations, information, main trading), etc. According to experts, in contrast, charging fees in each period is more favorable for cardholders than charging them all at once, and the handling fees of various banks are also different. For example, the handling fee of China Everbright Bank is 0.5%, and the handling fee of Shanghai Pudong Development Bank is 0.5%. Bank handling rate is 0.66%; Bank of Communications handling rate is different according to the amount, 1,500 yuan is 0.72%, 6,500 yuan is 0.70%, 12,500 yuan is 0.68%; China Guangfa Bank is 0.65%.
In other words, different banks have different installment fee rates, different collection methods, and different accounting methods for each installment. For example, credit cards such as Industrial Bank and Bank of Beijing will include the full amount of each installment into the minimum repayment amount, which puts considerable pressure on cardholders to repay. Installment payment companies such as China Construction Bank, Shanghai Pudong Development Bank, and Shenzhen Development Bank only include 10% of each installment in the minimum repayment amount, so that there is further buffer room for cardholders who are temporarily short of money. In contrast, the latter installment payment is more popular with cardholders than the former.
In addition, China Merchants Bank's installment payment is not for a certain expenditure, but for the entire bill. Similarly, China Everbright Bank's installment payment is also for the entire bill, and it is an automatic installment of your choice. In other words, Everbright Bank credit card holders can make all their purchases into 12-month installments, and then repay according to their own income and ability. As long as one installment is paid off, the remaining handling fees for each installment will be paid off. There is no charge or charge anymore, which is very different from other banks. Moreover, Everbright Bank has the lowest installment fee and should be the best method of installment payment.
The installment payment of ICBC also has an extension function, that is, the unfinished installment payment can be further extended, thereby further reducing the financial pressure; the installment payment of China Construction Bank and China Merchants Bank does not occupy credit Limit, if the credit limit is not high enough and friends who feel that the limit is not enough, you can consider using installment payment from China Construction Bank or China Merchants Bank.
So on this basis, how can we make installment payment better meet your consumption needs?
Pay in installments with the minimum repayment amount and easily cover a thousand yuan purchase
Use the minimum repayment amount of your credit card
This year’s National Day Golden Week is both the National Day and the During the Mid-Autumn Festival, many college students studying abroad want to take advantage of this long holiday to go home. But as the holiday gets longer, air tickets become more expensive. How to buy air tickets early without straining your living expenses is a question of making good use of the minimum repayment amount and installment payment function of your credit card.
Student Financial Management Tip 1: Make use of the minimum repayment amount on your credit card
Because she is studying in a university abroad, Huang Sonja has a headache every time she pays for air tickets home. Sometimes she buys air tickets late, leaving only high-priced tickets worth more than 700 yuan, which takes up more than 80% of her part-time income. If all the money is used to buy air tickets, she can only live frugally for a month. At the reminder of a friend, Huang Sanya started to use the minimum repayment amount of her credit card from last semester to pay off about 10% to 30% of the amount due, which is usually around 300 yuan.
According to international practice, for credit card consumption transactions, the period from the bank accounting date to the due date of repayment is the interest-free period. If the cardholder cannot repay in full during the interest-free period and only repays according to the minimum repayment amount of 10%, he must pay recurring interest. Most banks adopt the method of calculating interest in full. For example, Huang Sonja purchased a round-trip air ticket worth 1,400 yuan on September 4. The bill date is the 15th and the repayment date is the 3rd of each month.
If she repaid 300 yuan on October 3, the recurring interest in the statement on October 15 is: 1,400 yuan × 0.05% × 29 days (September 4 to October 2) (1,400-300) yuan × 0.05% × 13 days (October 3 to October 15) = 27.45 yuan. By analogy, if she makes a fixed monthly repayment of 300 yuan in the future and pays it off within five months, the recurring interest on the 1,400 yuan is 62.64 yuan per year. Huang Sanya believes that it is better to pay dozens of yuan in interest than to pay the air ticket in one lump sum and then live in poverty for two months.
Student Financial Management Tip 2: Pay in installments to buy your favorite items
When graduate student Chen Xiaoshan didn’t have a credit card, she accidentally fell in love with a piece of clothing worth hundreds of yuan and had to pay less every day. Eat some, use less, and wait until you save enough money to buy more. Now, less than a year after opening the card, she has bought a digital camera and a new mobile phone, but the monthly repayment is still controlled at around 300 yuan.
"The National Day is coming soon, and a lot of electronic products have dropped in price. It's a good time to use credit card installments!" Half a year ago, Chen Xiaoshan tasted the "sweetness" of installment payments for the first time. "18 issues, 68 yuan per issue!" An advertising slogan for a digital camera in an electronics mall caught her attention. Can you also apply for installments when buying electronic products with a credit card? You only need to pay back 68 yuan per installment? She couldn't believe it at first. After calling the bank to inquire, she learned that the installment fee had been allocated to the repayment amount of each installment, and the installment price would be 100 yuan higher than the original price. After this experience, when Chen Xiaoshan buys electronic products in the future, she will first go to the installment payment website to see if there are similar products.
In addition to institutions that cooperate with banks that support installment payments, some credit cards also have bill installment features. With some credit cards, you can apply for installments as long as a single purchase exceeds 500 yuan, and the rates vary depending on the number of installments. For example, a bill of 1,200 yuan is divided into 12 installments, with a rate of 0.65%. The amount payable in each installment is 1,200/12 1,200×0.65% = 107.8 yuan, and the handling fee does not exceed 93.6 yuan for 12 installments. For many college students who work part-time while studying, the burden of repaying more than 100 yuan a month is not heavy.
The interest-free credit card account details teach you three forms of installment payment
Narrative: The reporter’s husband’s company held a dinner party, and several boys and girls born in the 1980s gathered around the table to discuss New mobile phone. Out of curiosity, I went over to take a look. Four or five people each held a brand-new mobile phone that cost about 4,000 yuan. Just when I was wondering how the kids who had just graduated were so "generous", a fashionable girl Xiaoyan waved her mobile phone and said, "Not bad. Sister Wang, you can also buy one in installments with your credit card."
After asking, it turned out that they all used the credit cards they had just applied for to buy mobile phones in the form of installment payment, which is a typical early purchase.
Xiaoyan told reporters that if you can pay in installments with no interest, and you can own your favorite mobile phone in advance, why not? Seeing their excitement, the reporter couldn't help but feel excited, especially since they have just applied for a credit card and haven't yet approved it. What kind of people are suitable for installment payment by credit card and what kind of consumption is it? All major banks claim that credit card installment is free, but how are the handling fees calculated? What issues should we pay attention to when choosing credit card installment payment? Is it applicable to everyone? How to use?
There are different forms of installment payment
Credit card installment payment provides cardholders with the opportunity to "mortgage" when purchasing large items, and it can be regarded as a means of financial management, financial planner Xiao Jun told Reporter, the current forms of credit card installment repayments in various banks are basically divided into three categories.
The first type involves cooperation between banks and special merchants, and the product types in this form are generally limited.
In the second category, the bank provides a product catalog, and the cardholder purchases the product in the catalog. The bank then entrusts the supplier to deliver the goods to the customer. Only when the cardholder purchases in the catalog can he enjoy the installment payment. , the reporter once received a product catalog from Minsheng Bank.
The third category, bill repayment in installments, does not limit the products. The cardholder applies to the bank after shopping. The acceptance scope set by different banks is different.
It is understood that banks generally have restrictions on the starting amount of a single credit card installment payment transaction, and the specific standards of each bank must be consulted.
It can be interest-free and can be consumed in advance
"Credit card installment purchases are basically interest-free." A person in the banking industry said.
It is understood that there are currently many bank-designated consumer merchants that accept this kind of installment payment. Statistics from relevant electrical appliance shopping malls show that after the introduction of credit card installment payment, sales of high-end electrical appliances with high prices such as plasmas, LCD TVs, side-by-side refrigerators, drum washing machines, high-end digital cameras, digital camcorders, and new mobile phones increased by more than 20% on average. At present, a certain proportion of goods are sold in this mode. For example, young people like to buy computers, MP3 players, digital products, etc. in installments.
In addition to enjoying the benefits of being interest-free and spending in advance and paying later, the installment procedure using a credit card is also very simple. The fixed-time and fixed-amount repayment model also makes the borrower's funds relatively easy, and the monthly repayment amount is as high as You can also choose the repayment method. Quite attractive to young people.
Although interest-free is good, you still need to calculate the accounts carefully
Industry insiders remind cardholders to note that as long as credit card installment payments are repaid on time, they can enjoy interest-free treatment. , but bank installments generally require different amounts of handling fees.
Although using a credit card to pay in installments allows us to consume goods in advance without saving money for a long time, we still need to make careful calculations before purchasing. In particular, while enjoying installment payments, you must pay attention to the handling fees incurred by installment payments.
For example, if you purchase a SONY T100 digital camera with a total price of 2,780 yuan, and pay a handling fee of 2.5% for six periods, the repayment amount per period will be 463.3 yuan, and the interest will be zero, but The handling fee is 69.5 yuan, which we can convert and compare with the interest rate for the same period.
Nowadays, the competition in the credit card market is fierce. In order to win over customers, many banks have gradually withdrawn functions that facilitate cardholders to use cards and manage finances. Some banks even launch fee-free installments within a certain repayment period. For payment, cardholders can find the way.
How to use four credit card installment financing tools to help you
In the middle of last year, netizen C discovered a new use of credit cards through the credit card statements mailed by the bank every month. , that is installment shopping. "This business has been around for a few years. I didn't have a family before, so buying these things wouldn't be of much use. Now that I have a wife and children, my living conditions have improved, and I always want to try new things. Installment shopping Netizen C will not feel a lot of pressure because he has to spend a lot of money at once. On the contrary, it can relieve this pressure. However, for installment shopping, you still need to study carefully, such as how the handling fees are charged by each bank. You need to understand clearly what products can be purchased with the card. Understand the installment payment business
It is understood that the credit card installment business means that the cardholder applies to the bank to repay a certain amount of goods or services in installments. After the bank agrees, the amount will be divided into several equal installments, and the cardholder will repay the payment on a monthly basis within the agreed period, and pay a certain handling fee as appropriate.
In 2004, the credit card installment business was launched in China. , first China Merchants Bank launched mail-order installment payment, followed by Bank of China (601988 shares, quotations, information, main trading), Guangdong Development Bank, Pudong Development Bank, China Everbright Bank, China CITIC Bank (601998 stocks, quotations, information, main trading), Bank of Communications, China Construction Bank, etc. have successively launched this service. In 2006, China Construction Bank also launched consumption installment and large-amount installment payment services.
"Using installment payment, you can choose the number of installments according to your personal income. and amount. For example, if a cardholder purchases household appliances with a credit card of 6,000 yuan, and due to a lot of expenditure in the past 6 months, there is a certain degree of financial pressure, and can only repay the credit card debt of 1,000 yuan per month, he can apply for 6 consumption installments, or he can choose to repay in 12 installments. payment.
The types of installments currently provided by banks include 3, 6, 12 and 24 repayments. "The staff of the Credit Card Department of China CITIC Bank Ningbo Branch explained.
Each of the four types has its own advantages and disadvantages
There are four types of installment shopping, namely mail order installment, shopping mall installment, and consumption installment. Installment and large-amount installment, the product information received by netizen C mentioned above through the credit card statement belongs to the mail order installment.
The following table shows the characteristics of these four types. Before deciding to purchase in installments, you may wish to make a preliminary understanding of similar products on the market and compare them with the prices of products provided by banks. Furthermore, banks sometimes offer corresponding discounts on products, and cardholders can purchase them when discounts are available. Purchase this product.
Each has its own minimum consumption limit
According to the reporter’s understanding, the minimum consumption amount for each bank to apply for installment is basically between 500 and 1,600 yuan, but Everbright The bank has no requirements on the amount. At the same time, the bank only has 12 installments to choose from, and the handling fee is 0.5% per installment.
The bank with the highest minimum consumption requirement is Bank of Communications, which is 1,500 yuan. , 6 banks require a minimum limit of 1,000 yuan, 4 banks require a minimum limit of 500 yuan, and 2 banks have a minimum limit of 600 yuan. Bank rate experts remind consumers to enjoy the convenience of installment payment in financial management. At the same time, you should choose installment plans rationally based on your own financial strength, and do not spend blindly.
Buying a car in installments with a credit card is interest-free and free
After several years of accumulation, many white-collar workers have taken advantage of it. You have already saved a lot of money. For white-collar workers who have already planned to buy a car, it is a good time to buy a new car when there are many car discounts recently and you have more money. For those who want to buy a car with a loan, it may be better. Pay more attention to installment payments with credit cards and grab a free "pie".
However, a "shopping guru" who often uses credit cards to shop online reminded consumers on his blog: "The so-called. Most of the interest-free installments are scams. Although interest-free, it is not free. "The reporter found that credit card installments that are both interest-free and free do exist.
For example, China Merchants Bank has always provided the "Car Purchase Easy" business for car installments. The bank will use the credit status of the cardholder Review and provide customers with the service of purchasing designated brand cars in installments at designated dealers. At different stages, banks will launch interest-free and fee-free car purchase discounts with car dealers. For example, recently Changan Suzuki Swift and Tianyu. All series, Volkswagen, Dongfeng Citroen and other models have free handling fees and interest-free activities. In other words, if you need a loan of 80,000 yuan to buy a car, in addition to the down payment of 40% of 32,000 yuan, you only need to pay a fixed amount as required every month. The loan can achieve the purpose of completely free loan.
Compared with car loans, credit card installments are both cost-effective and convenient. It is understood that although many car dealers will also offer zero fees in the process of cooperation with banks. Interest rate promotions, but the corresponding discounts cannot be enjoyed. The specific vehicle purchase price for credit card installments is determined directly by the cardholder at the designated dealer store according to the normal car purchase process. For customers who are interested in applying for credit card installments. , China Merchants Bank, China Construction Bank and other banks will review it in time, and there is no need to pay additional fees such as guarantee fees.
From cash payment to installment discount, Cainiao became a "card god" in 6 years
I applied. The type is Air China Zhiyin co-branded card. Why don’t I need points? First of all, I am a Zhiyin member, and the accumulated miles can be used to sponsor me to go home to see my mother. Secondly, I personally think that the more miles the better. The gifts I can exchange for points from China Merchants Bank are dispensable things to me, and I would never spend money to buy them. My point is that you must not treat points as free points, but as things in your wallet. Money. Looking at it this way, I don’t have to think about using money to buy a plane ticket to visit my mother, or a small synthetic blanket with Mickey Mouse printed on it.
My principle of using credit cards is that I can use it. Brush. I’m afraid everyone is familiar with this.
But because the accumulated mileage is 18 yuan per mile - are the classmates from China Merchants Bank here? The exchange standards of many banks are much lower than yours! ! ! ——So when I go shopping, I mentally calculate the total amount. If you have already spent more than 10 yuan, then simply buy 18 yuan. Of course I will still buy some useful things like wet wipes. In addition, the mistake I made at the beginning was to use the total amount of one month's bills to calculate the redeemable miles. In fact, every time you spend money, you can redeem miles simultaneously. So try not to buy an amount that looks like a loss at first sight, such as 35 yuan. This is a test of mental arithmetic skills, but fortunately there are calculators on mobile phones now. . . . . . Having said that, if you swipe your card to buy a refrigerator at Electrical Appliance City, forget about this. There is no need to buy an extra hair dryer just for a mere mileage. But the same trick is that if you want to buy two or more electrical appliances, you must open all the receipts and swipe the card together, at least you will not lose more.
What if the thing you want to buy is 2W, but your quota is only 1W? Feel free to call the toll-free 400 number to China Merchants Bank and ask them to increase your credit limit as soon as possible. Don't tell him how much you want to add, but directly tell him how much you want to buy. Sometimes the bank gives you a higher limit than you want! This has two obvious benefits: first, accumulating more points or miles; second, increasing your credit limit faster. The bank will think, wow, his consumption is so high, the wealth cannot flow to outsiders, so hurry up and increase his credit limit so that he can use it as much as possible! My credit limit increased from 15,000 to 30,000, all because the bank took the initiative to increase it for me, haha.
Interest-free installment payment by credit card does not mean free of charge
Handling fees cannot be saved
According to the reporter’s interview, many consumers mistakenly believe that “0 interest” means It's completely free. In fact, each bank will charge a handling fee of about 0.65% to 15%. Moreover, there is also a difference between one-time collection and installment collection in the way of collecting handling fees. If consumers do not understand clearly, they are often prone to saving less money when repaying the loan, which may lead to a bad credit record after the payment is overdue.
In addition, interest-free does not mean that late payment fees are waived, which is often overlooked by many cardholders. During the National Day holiday, some banks will temporarily increase credit card limits by 20%. For example, the usual overdraft limit of 10,000 yuan will be temporarily increased to 12,000 yuan. At this time, cardholders must pay attention when repaying. If the overdraft is overdue, a 5% over-limit fee will be charged.
Reporter investigation: Handling fees are higher than loan interest, and car buying is more prominent
Reporters found that the handling fee standards for credit card installment payments vary greatly among banks. But most of them follow the principle that the longer the repayment time, the more installments, and the higher the handling fee. There are a few exceptions, such as China Construction Bank and Shanghai Pudong Development Bank.
Generally speaking, the handling fee for 12 installments is around 7%. The current one-year loan interest rate of commercial banks is 5.31%, and the loan interest rate of one to three years (including three years) is 5.40%. When consumers purchase large-ticket items such as cars and real estate, the difference becomes even more obvious.
Experts remind: Don’t blindly choose installment payment
Currently, interest-free installment payments from banks are generally divided into two types. One is from designated merchants, such as China Merchants Bank, with relatively low handling fees. , but the range of products consumers can choose is limited; the other is China Guangfa and Bank of Communications, which have no restrictions on merchants and products, which is very free and convenient for consumers, but consumers need to bear a higher handling fee cost. It is recommended that cardholders take the time to calculate the cost of installment payment before deciding whether to pay in installments. Do not blindly choose installment payment.
Bank fees are higher than loan interest rates, and interest-free installment payments are not cost-effective
Nowadays, many shopping malls have joined forces with banks to launch interest-free installment payments to attract consumers. However, reporters found that although installment payments are interest-free, some banks' handling fees are higher than the loan interest rates for the same period, which is not cost-effective for consumers.
The handling fee is higher than the loan interest rate
Taking the "Bangyanxing" interest-free installment just launched by Guangdong Development Bank as an example, the handling fee standard is 0.6% per month.
China Guangfa Bank stipulates that existing card customers who register for 6 or 12 installments between March 21, 2006 and June 30, 2006 can enjoy the first installment fee exemption.
The reporter learned that this is already the most favorable handling fee standard in China. Even so, if you pay in 12 installments, you still need to pay a handling fee of 0.6% per installment for 11 installments. The handling fee for one year is 6.6% of the consumption amount. In comparison, the bank’s interest rate for personal consumption loans from June to 1 year (including 1 year) is only 5.58%.
The installment payment handling fee standards of various banks vary. Taking Bank of Communications as an example, you can apply for installment payment if the transaction amount reaches RMB 1,500, but its handling fee is as high as 0.72%, and the lowest rate is is 0.68%.
Designated merchants have lower consumption rates
It is not impossible that consumers can really enjoy low-rate installment payments, but only at designated merchants. CMB credit card holders who spend RMB 2,000-50,000 on a single item of Beijing Dazhong Electrical Appliances can enjoy three interest-free installments, and can also choose to pay in six and 12 installments, with handling fees of 1.5% and 2.5% respectively. The handling fee is a one-time charge.
Zero interest ≠ zero-fee installment payment has a hidden trick of raising the price
Most consumers may be confused about what issues should be paid attention to when using credit cards for installment payment. water. The reporter specifically interviewed Nie Junfeng, a senior credit card expert, and Dr. Li Junfeng, a professor at the School of Finance at the Central University of Finance and Economics, to provide consumers with tips on installment shopping.
Zero interest ≠ zero fees
Installment payments with bank credit cards are interest-free. However, some consumers often misunderstand this: they mistakenly believe that installment payments do not require any other fees.
Such misunderstandings often cause consumers to find that they often need to pay dozens or even hundreds of dollars more on their bills after making installment payments. It turns out that when consumers apply for installment payment services, banks will charge a certain amount of handling fees to cardholders. The handling fee collection methods and standards of each bank are different
Currently, there are two ways for banks to collect handling fees. One is to collect handling fees on an average monthly basis. Agricultural Bank of China, China Construction Bank, etc. adopt this form. ; The other is a one-time payment when paying the down payment, represented by ICBC and Bank of China. Consumers should consult before making installment purchases to understand the rates and calculation methods.
The prices of zero-fee goods are on the high side
The reporter found that several banks such as Bank of China have recently launched "zero-fee" installment payment services. In response to this phenomenon, Dr. Li Junfeng, a professor at the School of Finance at the Central University of Finance and Economics, pointed out that although zero handling fees are charged to consumers, the income that banks obtain from merchants will not decrease but may be higher. This means that the price of a “zero fee” item is higher than the same item on the market.
There are large differences in handling rates and commodity prices between different banks
The brand effect of each bank is different, and the customer resources are also very different, which directly results in the installment payment rates. Big difference. Nie Junfeng told reporters that due to their rich customer resources and high market share, commercial banks with larger operating scales have higher installation fees and even higher commodity prices than small and medium-sized banks.