There are two major differences between the minimum payment amount of a credit card and the installment payment. One is that the repayment amounts are different. Another is the cost difference. Let’s talk about the repayment amount first. The minimum credit card payment is 10% of the bill amount. If your bill amount is 10,000 yuan, then your minimum payment is 1,000 yuan. The credit card installment payment amount mainly depends on the number of installments you have. For example, if your bill amount is also 10,000, then you will repay it in 12 installments. The monthly repayment amount is the principal of 10,000 and the interest in each installment. The principal is 833 yuan, and the monthly interest is about 60 yuan. Therefore, the monthly repayment of the credit card installment is 893 yuan. If repaid in 24 installments, the monthly repayment amount is 476 yuan. Therefore, the minimum credit card payment amount and the credit card installment amount are very different.

The second difference is the fees incurred. The minimum payment amount of a credit card and the interest calculation method are divided into two stages. One period is from the consumption date to the final repayment date, and interest is calculated on the full amount, with a daily interest rate of 0.05% and compound interest. The other period is from the last payment date to the next billing date. The remaining unpaid amount is charged 0.05% daily interest, which is also compound interest. The comprehensive interest rate is around 2 cents. Because the interest rate on the minimum repayment amount is more complicated, we will calculate a rough value. In other words, for a bill of 10,000 yuan, the minimum repayment amount is about 200 yuan. Then the credit card installment fee is about 0.6%, which means that for 10,000 installments, the monthly fee is about 60 yuan. If an installment is made after the bill date, the current bill does not need to be repaid. This is equivalent to an extra month of interest-free period. Therefore, the interest accrued on the minimum credit card payment is higher than the interest accrued on the credit card installment. In other words, if you have financial difficulties, you should first consider credit card installment. If your credit card doesn't allow installment, choose the lowest payment amount.

Finally, there are two major differences between the minimum payment amount of a credit card and the installment payment of a credit card. First, the repayment amounts are different. The minimum credit card repayment amount is 10% of the bill amount, and the credit card installment amount is the monthly repayment plus installment interest. Second, the interest generated is different. The interest accrued on the minimum credit card payment is about 2 cents. The credit card installment fee is about 0.6%. Related questions and answers: