Credit card overdraft is a short-term overdraft given by the credit card issuer to the cardholder within the prescribed limit when shopping with the card. For credit cards, it is allowed to "consume first, then repay", and overdraft is an important feature. For debit cards, it should be "deposit first, then spend", but on the premise that it is recognized as goodwill overdraft and repayment is guaranteed, the cardholder is also allowed to overdraw an appropriate amount in a short time when the money is urgently needed. Overdraft interest is generally much higher than bank loans in the same period, and card issuers also have a set of measures to prevent and recover overdraft risk losses.
The longest overdraft period of a credit card is 60 days.
Credit card overdraft interest shall be charged at the rate of five ten thousandths of daily interest within 15 days from the date of signing the contract or the date of bank entry (inclusive), and at the rate of five ten thousandths of daily interest after 15 days, and at the rate of fifteen thousandths of daily interest after 30 days or when the overdraft amount exceeds the prescribed limit. The overdraft interest is not divided into sections, and the interest is calculated according to the highest interest rate grade or the highest overdraft amount.
Take a credit card spending of 50,000 yuan as an example. If it takes 45 days from the billing date to the repayment date, the cardholder will repay 40,000 yuan on the repayment date, and the remaining 10000 yuan will not be repaid on time. If you hold a card of China Construction Bank or China Merchants Bank, you need to pay interest at the base of 50,000 yuan per day, and you need to pay overdraft interest within 45 days 1 125 yuan; If you hold ICBC's credit card, you only need to calculate the overdraft interest for the unpaid 1000 yuan, and the overdraft interest to be paid within 45 days is 225 yuan, a difference of 5 times. If you can't repay on time, it's not because you can't repay, but because you remember wrong, which leads to a small number of mistakes, then the difference is even greater.
If consumers overdraw in full and can't repay on time, they will incur overdraft interest and other expenses, resulting in the amount owed exceeding the limit. Because the cost overrun is caused by the cost of the credit card itself, some banks will not charge extra fees for this situation. For example, China Construction Bank and China Merchants Bank Credit Card Center both indicated that they did not accrue the over-limit fee.
However, ICBC and China CITIC Bank Credit Card Center said that if the arrears exceed the credit card limit, they will charge a 5% overrun fee. However, ICBC said that it would only be charged once in an overrun period, while CITIC Bank said that the overrun fee would be compounded monthly.
If the cardholder uses the unit card to overdraw, the unit shall bear the responsibility of repaying the overdraft amount and paying overdraft interest. If the cardholder uses the supplementary card of the personal card to overdraw, the main cardholder shall be responsible for repaying the overdraft amount and paying overdraft interest; If the cardholder of the main card loses the repayment ability, the cardholder of its subsidiary card shall be responsible for repaying the overdraft amount and paying the overdraft interest.