Benefits of paying credit card bills in installments: 1. Relieve financial stress. For many people, credit card spending can greatly relieve financial stress. Under the installment payment method for credit card bills, cardholders have less repayment pressure, and higher bills can be paid off in several stages.
2. It is beneficial to increase your credit card limit. Banks earn interest from credit card processing fees, interest and annual fees. After cardholders apply for installment repayment of credit cards, the bank will charge processing fees, so banks are more supportive of installment repayment for cardholders. In addition, this operation will make the bank extend your credit card limit application rate will be higher.
3. Credit card bills can be paid in installments. Banks will organize some preferential activities for cardholders from time to time, as well as credit card installment repayment activities. If you apply for installment repayment during the event, you can reduce certain handling fees or interest, which is a good choice for cardholders with poor financial conditions.
4. Credit card value-added discounts. Bank cards generally have preferential merchants. Cardholders can enjoy shopping discounts when spending in shopping malls, and can also accumulate consumption points, which can be redeemed for various free products or cash in the future.
Disadvantages of credit card installment payment: First, additional handling fees are incurred. After cardholders choose to pay in installments, additional fees will be incurred during the installment period, and different credit cards have different rates. The second is to reduce your availability. Generally, the amount of a credit card is fixed. After the cardholder chooses to repay the bill in installments, the amount of the credit card that can be used flexibly will gradually decrease, which may affect the cardholder's subsequent consumption, so choose carefully.
Third, it can easily lead to over-consumption. After repaying credit card bills in installments, although the repayment amount is large, because they only need to pay a little each month, many people will have the illusion that they have a lot of money to pay back, leading to uncontrollable consumption and over-consumption. . There are pros and cons to choosing to repay your credit card bill in installments. Cardholders can choose the repayment method according to their own economic situation and consumption level, and pay attention to moderate consumption and reasonable consumption.