You can spend the overpayment by swiping your card in the next month to avoid unnecessary expenses.

The consequences of paying too much on a credit card:

When the amount deposited into the credit card exceeds all the balances owed on the account, the extra amount is called "overpayment", also called excess. The repayment will be deposited into the credit card account. Since credit cards do not have the savings function of debit cards, overpayments will not generate interest income. Not only that, there will also be fees for withdrawing the funds.

Overpayment can increase the available limit of your credit card or be used directly for consumption repayment. If there is an overpayment on the credit card, the overpayment will be deducted first and then the credit limit. If the overpayment is greater than the consumption amount, it will not form an overdraft.

However, this method of using credit cards is not advisable. It not only affects your own income, but may also affect your personal credit report.

1. Credit cards are different from general debit cards. Not only does the overpayment not include interest, but when you withdraw it, you usually have to pay a handling fee of 0.5%-2% according to the credit card cash withdrawal. The fee for overseas cash withdrawal is even higher. high. This is not a good deal for cardholders.

Generally speaking, cash withdrawal fees are basically charged for ATM withdrawals. The usual standard is 0.5% of the cash withdrawal amount, with a minimum of 5 yuan; overseas cash withdrawal fees are higher. If you make a withdrawal at an ATM machine with an overpayment, you will still be charged a cash withdrawal fee according to the credit card withdrawal standards. In this case, it is recommended that the cardholder transfer the overpayment on the credit card to the bank's debit card and then withdraw cash from the debit card. This reduces handling fees.

2. Overpayment may also affect credit card limit increase. If there is an overpayment in a credit card, it is easy for the bank to determine that the funds are sufficient. There is not much demand for funds, and it is relatively difficult to increase the limit.

3. If there is an overpayment on the credit card and the cardholder has not used the credit card for a long time, a bad debt overpayment may appear in the personal credit record.

4. Early repayment of credit card installments will be subject to handling fees or liquidated damages for the remaining period.

Generally speaking, the more installments, the lower the rate per installment and the higher the total cost. Taking a state-owned bank as an example, there are 3 installments, 6 installments, 9 installments, etc., and the corresponding service rates are 2.17%, 3.80%, and 5.42% respectively. In other words, if 20,000 yuan is divided into 3, 6, and 9 phases, the handling fees for each phase are 145 yuan, 127 yuan, and 120 yuan respectively, and the total handling fees are 434 yuan, 760 yuan, and 1,084 yuan respectively. .

In order to save the total handling fee, some people have the idea of ??"early repayment", but this may not be a good choice, because if the loan is repaid early, the bank will charge liquidated damages. Taking a joint-stock bank as an example, when a credit card is repaid in advance, if the handling fee is collected in one go, the handling fee collected will not be refunded; if the handling fee is collected in installments, the handling fee already collected will not be refunded, and the remaining unpaid principal will be collected. Gold 3%.