How much is the credit card installment interest?

The credit card installment interest rate is determined by the card-issuing bank based on a comprehensive assessment of the cardholder's credit conditions. Generally, the monthly interest rate is around 0.75%, which translates into an annual interest rate of 9%. . However, the cardholder only owed the bank 100 million yuan in the first month. With the monthly repayments, the debt became smaller and smaller. In the last month, the debt owed was only 833 yuan, but the monthly interest owed was still Calculated based on the total borrowed amount, the actual interest rate is much higher than 9%.

Extended information:

For example, if the credit card bill is 10,000 yuan, and the monthly installment interest rate is 0.6% after discounting the bank discount, the annual rate is 0.6%12=7.2%, which seems quite good. It is cheap. If divided into 12 installments, the monthly principal to be repaid is 833 yuan and the interest is 60 yuan. The monthly principal plus interest will be a monthly repayment of 893 yuan.

However, many people ignore one point. The interest paid every month is fixed in the equal principal and interest repayment method, while the principal decreases every month. For example, the principal of the first month The gold is 10,000, and the second month is 10,000-833=9167.

By analogy, the principal is 833 yuan in the 12th month of the last period, and the interest is still 60 yuan. The actual interest rate in the last month is 60/833=7.2%, which is 60/833=7.2%. The monthly rate of 0.6 is many times higher.

What is the credit card installment interest rate?

The credit card installment interest rate is determined by the card-issuing bank based on a comprehensive assessment of the cardholder's credit conditions. Generally, the monthly interest rate is around 0.75%, which translates into an annual interest rate of 9%. However, the cardholder only owed the bank 100 million yuan in the first month. With the monthly repayments, the debt became smaller and smaller. In the last month, the debt owed was only 833 yuan, but the monthly interest owed was still Calculated based on the total borrowed amount, the actual interest rate is much higher than 9%.

Credit cards, also called credit cards, are credit certificates issued by commercial banks or credit card companies to consumers with qualified credit. It takes the form of a card with the issuing bank's name, validity period, number, cardholder's name and other contents printed on the front, and a magnetic stripe and signature strip on the back. Consumers holding credit cards can shop or consume at specially designated commercial service departments, and then the bank will settle the accounts with merchants and cardholders. Cardholders can overdraft within the prescribed limit.

Credit cards stipulated in the relevant laws of our country ("Interpretation of the Standing Committee of the National People's Congress on Relevant Credit Card Regulations") refer to credit cards issued by commercial banks or other financial institutions with the functions of consumption payment, credit loans, transfer settlement , cash deposit and withdrawal and other full or partial functions of the electronic payment card. On December 1, 2017, the "English Translation and Writing Standards in the Public Service Field" was officially implemented, stipulating that the standard English name of credit cards is CreditCard. Credit card consumption is a non-cash transaction payment method. There is no need to pay cash when consumption, and repayment will be made on the billing date (BillingDate).

Credit cards are divided into credit cards and quasi-credit cards. Credit cards refer to credit cards in which the cardholder has a certain credit limit and can consume within the credit limit and then repay; quasi-credit card It refers to a quasi-credit card in which the cardholder deposits a certain amount of reserve fund as required. When the reserve account balance is insufficient to pay, the cardholder can overdraw within the prescribed credit limit. The so-called credit card generally refers to a credit card only.

Starting from January 1, 2021, the credit card overdraft interest rate will be determined independently by the card issuer and the cardholder through independent negotiation, and the upper and lower limit management of credit card overdraft interest rates will be cancelled. The daily interest rate is 0.7 times 5/10,000). On May 25, 2021, the Supreme People's Court issued and implemented the "Regulations of the Supreme People's Court on Several Issues Concerning the Trial of Bank Card Civil Cases".

Main Features

Pre-deposit of cash is not encouraged. Spend first and repay later. Enjoy an interest-free repayment period. You can repay in installments (with a minimum repayment amount). Join VISA, International credit card organizations such as MasterCard and JCB are used globally. It is one of the fastest growing financial services today and is an electronic currency that can replace traditional cash circulation to a certain extent. It has both payment and credit functions. Cardholders can use it to purchase goods or enjoy services, and can also obtain certain loans from card issuers by using their credit cards.

It is a high-tech product integrating financial business and computer technology.

Can reduce the use of cash currency.

It can provide settlement services to facilitate shopping and consumption and enhance a sense of security. It can simplify the collection procedures and save social labor. Can promote product sales and social demand.

How much is the interest rate for credit card installment?

The maximum credit card installment is 24 months, that is, two years. In bank credit card business, interest is calculated based on the total principal amount for installment repayment and minimum repayment. If you pay in installments, no matter how many months you repay, the interest is calculated based on the total principal amount.

Credit card installment payment means that when the cardholder uses a credit card to make large purchases, the bank pays the merchant a one-time payment for the goods (or services) purchased by the cardholder, and then allows the cardholder to pay in installments The process of repaying money to the bank and paying handling fees. The bank will deduct consumption funds and handling fees from the cardholder's credit card account in installments based on the cardholder's application, and the cardholder will repay according to the monthly credit amount.

In the early days of the credit card installment business, banks often promoted it as "interest-free", and indeed many citizens were "fooled". In fact, interest-free is not free, it’s just called something different.

In general, the one-year credit card installment fee is lower than the annual cash withdrawal interest of 18%, and higher than the bank's one-year commercial loan interest of 5.31%. It is worth mentioning that commercial bank loan interest rates have been reduced many times in recent years, but the standards for credit card installment fees and cash withdrawal interest have rarely changed. Although the standards for credit card installment fees vary from bank to bank, the calculation method is roughly the same.

If you want to borrow money, the Duxiaoman platform is convenient and easy to use. Du Xiaoman's credit service products have money to spend, providing users with safe, convenient, unsecured, and unsecured credit services. To borrow money, just go to the Du Xiaoman APP (official measurement amount below). Youqianhua consumer loans have daily interest rates starting as low as 0.02%, annualized interest rates starting as low as 7.2%, and you can borrow up to 200,000! It has the characteristics of easy application, low interest rates, fast disbursement, flexible borrowing and repayment, transparent interest fees, and strong security.