How much is the credit card installment interest?

The credit card installment interest rate is determined by the card-issuing bank based on a comprehensive assessment of the cardholder's credit conditions. Generally, the monthly interest rate is around 0.75, which translates into an annual interest rate of 9. However, the cardholder only owed the bank 100 million yuan in the first month. With the monthly repayments, the debt became smaller and smaller. In the last month, the debt owed was only 833 yuan, but the monthly interest owed was still Calculated based on the total borrowed amount, the actual interest rate is much higher than 9.

Extended information:

For example, if the credit card bill is 10,000 yuan, and the monthly installment interest rate is 0.6 after discounting the bank discount, the annual rate is 0.612=7.2, which seems quite cheap. For 12 installments, the principal to be repaid each month is 833 yuan, and the interest is 60 yuan. The monthly principal plus interest will be a monthly repayment of 893 yuan.

However, many people ignore one point. The interest paid every month is fixed in the equal principal and interest repayment method, while the principal decreases every month. For example, the principal of the first month The gold is 10,000, and the second month is 10,000-833=9167.

By analogy, in the 12th month of the last period, the principal is 833 yuan, and the interest is still 60 yuan. The actual interest rate in the last month is 60/833=7.2, which is 60/833=7.2 per month. The monthly figure of 0.6 is many times higher.

How to calculate credit card installment interest?

Credit card installment payments generally have no interest and only charge handling fees. Whether there are points depends on the specific installment purchases. For example, there are generally no points for buying a car with a credit card, but there are generally points for paying with a credit card for restaurants and supermarkets. , In addition, banks often have activities that give points when paying bills in installments.

The following are the installment fee standards of several banks:

1. ICBC credit card installment fee: no handling fee for 3 periods, 1.8 for 6 periods, 2.7 for 9 periods, 3.6 for 12 periods , 18 issues 5.85, 24 issues 15.6. (one-time charge)

2. Agricultural Bank of China credit card installment fee: 0.6 per month (charged every month).

3. Bank of China credit card installment fee: 1.95 for 3 periods, 3.6 for 6 periods, 5.4 for 9 periods, 7.5 for 12 periods, 11.7 for 18 periods, 15 for 24 periods (one-time charge)

4. CCB credit card installment fee: 0.7 for 3 periods, 0.6 for 6 and 12 periods (charged every month).

5. CITIC Bank credit card installment fee: 1.50 for 1 period, 0.826 for 3 periods, 0.82 for 3 periods, 0.77 for 12 periods (charged every month).

6. Pudong Development Bank credit card installment fee: 0.72 for 3 periods, 0.7 for 6 periods, 0.66 for 12 periods (charged every month)

7. China Merchants Bank credit card installment fee: 1.0 for 2 periods , 0.9 for 3 periods, 0.75 for 6 periods, 0.7 for 10 periods, 0.66 for 12 periods, 0.68 for 18 periods, 0.68 for 24 periods (charged every month).

8. Bank of Communications credit card installment fee: 0.72 per month (charged every month).

9. Guangfa Credit Card Installment Fee: 0.65 for 6th and 12th periods, 0.7 for 18th period, and 0.72 for 24th period (charged every month).

How much is the interest rate for credit card installment?

The maximum credit card installment is 24 months, that is, two years. In bank credit card business, interest is calculated based on the total principal amount for installment repayment and minimum repayment. If you pay in installments, no matter how many months you repay, the interest is calculated based on the total principal amount.

Credit card installment payment means that when the cardholder uses a credit card to make large purchases, the bank pays the merchant a one-time payment for the goods (or services) purchased by the cardholder, and then allows the cardholder to pay in installments The process of repaying money to the bank and paying handling fees. The bank will deduct consumption funds and handling fees from the cardholder's credit card account in installments based on the cardholder's application, and the cardholder will repay according to the monthly credit amount.

In the early days of the credit card installment business, banks often promoted it as "interest-free", and indeed many citizens were "fooled".

In fact, interest-free is not free, it’s just called something different.

In general, the one-year credit card installment fee is lower than the one-year 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 in recent years, but the standards for credit card installment fees and cash withdrawal interest have rarely changed. Although the standards for credit card installment fees vary from bank to bank, the calculation method is roughly the same.

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