When repaying a credit card after consumption, there are many repayment methods to choose from, such as installment repayment, minimum repayment, etc. So, what are the advantages and disadvantages of credit card bill installment? Will it affect your credit score? Let’s learn more about it with the editor!

What are the advantages and disadvantages of credit card bill installment?

1 Benefits of credit card installment

1. Relieve financial pressure: Credit card installment can relieve financial pressure. Needless to say, this is natural. Through installment, you can spread the bill to multiple months and enjoy up to 36 installments. With installments, the pressure is naturally reduced a lot. It won't affect your personal credit score, and you don't have to be coy about asking someone to borrow money.

2. Installment is conducive to increasing the amount: Banks are financial institutions, and profit is the main goal. If you can bring profits to the bank, you will naturally be defined as a high-quality customer by the bank. There are handling fees for credit card installments. , and the fee is not low. Installment can bring a lot of profits to the bank. When you apply for a limit increase to the bank, the other party will naturally not embarrass you, and the probability of a successful limit increase will be very high.

2 Disadvantages of Credit Card Installment

1. Installment fee: After the cardholder handles the installment repayment of the credit card bill, the bank will charge a certain fee. Different bank charging standards no the same. Credit card installment repayment, the longer the installment period, the higher the handling fee. In addition, the installment repayment fee will not be reduced, and early repayment will also be deducted.

2. Reduced available limit: The credit card limit is generally fixed, and sometimes there is a temporary limit as a gift. After cardholders choose credit card installment, the amount they can use flexibly will be reduced, which will affect subsequent consumption.

3. It is easy to make people over-consume: After the credit card installment is repaid, the large consumption this month will be spread to each month. If you choose to repay in installments every month, then the accumulated repayment amount will be More and more, people will be able to repay no matter how much they consume. Anyway, after repaying in installments, they only have to pay back a little. Therefore, credit card installments increase the risk of credit card overdue.

Will credit card installments affect your credit report?

Whether credit card installments will affect your credit report needs to be divided into the following two situations:

1. If you hold After the cardholder makes the credit card installment and repays the loan on time, this situation will not affect the cardholder's personal credit report.

2. If the cardholder fails to repay the loan on time after making a credit card installment, this situation will affect the cardholder's personal credit report. The card-issuing bank will upload the overdue record to the central bank. The credit reporting system will produce bad credit records in the cardholder's personal credit report.