How to pay off credit card with lower interest rate? Competition between three repayment methods
There are three credit card repayment methods, including but not limited to full repayment, minimum repayment, and installment repayment. Different repayment methods will have different effects. . Many people want to know how to repay credit cards with lower interest rates. Today we will compare these three repayment methods to see which is the most economical repayment method.
How to pay off credit card with lower interest rate?
1. Full repayment
Full repayment means repaying the current balance in one lump sum after the bill comes out. It is suitable for cardholders with relatively strong financial strength. The biggest advantage of this repayment method is that you don’t have to pay a penny of interest on all the debts incurred for consumption, that is, you can pay back as much as you owe.
2. Minimum repayment
If the new consumer debt in the current bill cannot be paid off at once, the minimum repayment can be made. Cardholders can avoid overdue payments as long as they repay 10% of the outstanding amount in the current period. However, unpaid consumer debts can no longer enjoy the interest-free period, and interest will be calculated at a daily interest rate of 0.5% from the date the consumption is recorded.
Suppose: The cardholder spent 10,000 yuan on August 2, and the current balance due is 10,000 yuan after the bill comes out on September 1. The minimum repayment amount is 10%, September 17 After paying back 1,000 yuan, the interest accrued on the next bill date is (10,000 × 459,000 × 15) × yuan. This only calculates the interest for one period. If the next period's bill is not paid off, interest will continue to be calculated.
3. Installment repayment
If you cannot repay the new consumption debt in the current period in full and do not want to make the minimum payment, you can repay it in installments. Installment repayment can be regarded as calculating interest on a monthly basis. Different installments have different monthly interest rates, which translate into an annual interest rate of about 18%. The key is that no matter how many installments are repaid, the monthly interest rate will not change until the repayment is completed.
Suppose: The cardholder repays 10,000 yuan in 6 installments. The monthly interest for each installment is 75 yuan per month, and the total interest for 6 installments is 450 yuan.
It is not difficult to see through comparison that among the three repayment methods, the interest generated by full repayment
The above is the relevant introduction to "How to repay credit card with low interest rate". Hope it helps everyone.
How to calculate interest on credit cards.
Generally, the daily interest rate for credit card interest is 0.05%, which means that the monthly interest on 10,000 yuan is about 150 yuan.
1. Credit cards are generally repaid on time and there is no interest for full repayment. In addition, overdraft cash withdrawals also charge a certain amount of interest and handling fees. The interest is calculated on a daily basis, which is also very high. It starts from the day when the cash is withdrawn. Interest will be calculated from now on, and the handling fee will be charged at 0.5% (minimum 2 yuan/transaction). You can control your credit card consumption and repay it on time every month. The credit card will always be interest-free. You only need to refund the bank amount you spent. If you overdue the payment without interest or fail to repay in full, the bank will charge interest.
2. Credit card interest is calculated from the date of purchase. Interest is charged at 5% per day and is compounded monthly. That is to say, if the interest is not paid this month, interest will also accumulate next month. In addition to interest, failure to repay on time using a credit card will also incur some other fees, such as late payment fees, retention fees, etc. Cardholders should pay attention to the cost standards of credit cards when using them. Credit cards are generally repaid on time, and full repayment is interest-free. You can control your credit card consumption every month and repay it on time. The credit card can always be interest-free. Only the amount you spent will be refunded to the bank without interest.
If necessary, we recommend you to use Youqianhua, which is a credit service brand under Duxiaoman Financial (original name: Baidu Youqianhua, renamed "Youqianhua" in June 2018) , big brands are reliable, have low interest rates and are trustworthy. Youqianhua-Manyidai, the maximum loan amount is 200,000, and the daily interest rate starts as low as 0.02%.
I have learned about many small loan companies. Generally speaking, Baidu Youqianhua has the best approval rate The highest platform. The credit limit is the highest. I was given a credit limit of 9.5W for nothing, and my colleague directly extended a credit limit of 18W.
Du Xiaoman - If you have money to spend (second batch), click online to measure the amount
Special note: withdraw the full amount as soon as possible after the limit is exceeded, because risk control is dynamic.
It is best to put forward all the suggestions you have. The risk control system will mistakenly think that you don’t need the funds very much, causing the withdrawal to fail. It is safer to raise at least 60%. Early settlement and repayment is supported after the first installment.
If you have enough money to spend or no quota, it is recommended to try the following two platforms, which are also relatively formal licensed financial institutions! The review is relatively less strict!
360 IOU can borrow up to 200,000 yuan!
Click to measure the amount online
You can borrow up to 50,000 in installment loan!
Click to measure the amount online
How to calculate credit card repayment interest? These three repayment methods will be charged
As long as the cardholder can pay the full amount on time If you repay the loan, you can enjoy the interest-free treatment, but there are always people who can't do it. How is credit card repayment interest calculated? Below are three repayment situations to calculate for you how much interest the cardholder will bear.
1. Credit card installment repayment interest
In fact, banks do not charge interest for credit card installment repayment, but the handling fee cannot be less, which means that the handling fee is also a disguised form. Interest. Different banks have different installment fee rates. Take the ICBC credit card as an example to see how this "interest" is calculated.
ICBC credit card installment handling fee is collected in one installment, and the rates for different periods are as follows:
3-period handling fee, period-based handling fee, period-based handling fee, period-based handling fee Assume that the installment amount applied to ICBC is 2,000 yuan, and the number of installments is 6. Then the handling fee that the cardholder needs to bear is: 2,000 yuan.
2. Repayment with the Minimum Repayment Amount of a Credit Card
The minimum repayment amount of a credit card of each bank is generally 10% of the bill amount. Once the cardholder chooses to repay with the minimum amount, the cardholder will No longer enjoy interest-free credit card benefits. All consumption amounts in the bill will be charged an interest of 0.05% on a daily basis from the date the card is swiped. Note that interest accrues from the day the card is swiped, not the final repayment date.
The interest charged at 0.5% per day converts into an annual interest rate of almost 18%, which is a large fee. Therefore, it is recommended that all cardholders repay the loan in full as soon as possible to avoid unnecessary expenses. .
3. Credit card overdue repayment interest
Summary: How to calculate credit card repayment interest? The above three different situations have different calculations. Among them, overdue credit card not only needs to bear interest, but also Affecting your credit score, using credit card installments and minimum repayments will not affect your personal credit.
That’s it for the introduction of how to repay interest on credit cards.