Why do credit cards charge interest for monthly repayment?
Credit cards also charge interest for monthly repayment, which is related to the cardholder's way of using the card and repayment. There are three common situations, and the calculation method of interest is different.
1. Not fully repaid in the early stage: there are often card friends who are not overdue, but have not fully repaid, and some have only paid the minimum amount or exceeded the minimum amount. As long as the outstanding debt is above 10 yuan (many banks have tolerance service within 10 yuan), interest will be paid in full from the date when the transaction is recorded, with a daily interest rate of five ten thousandths, which will be included in the next bill.
2. Cash withdrawal by credit card in the previous period: Cash withdrawal by credit card will generate interest, which is calculated in two parts, one is from the date of cash withdrawal to the date of repayment, and the other is from the date of repayment to the next billing date, which is also calculated on a daily basis, with a daily interest rate of five ten thousandths.
3. Credit card installment: There are two kinds of credit card installment: consumer installment and bill installment. No matter which staging method is adopted, a part of the principal and handling fee will be repaid every month after the successful staging, which can be regarded as monthly interest collection. The monthly interest rate is determined by the number of periods, and each period is at 1%~, depending on the bank.
The above is the introduction of "Why do credit cards have to pay interest every month". In short, you can find out the reasons for the interest generated by credit card repayment according to the above three situations, and then repay according to the amount owed on the bill. If you don't pay the interest, only paying the principal may be overdue.