Interests are different

Except for full repayment before the repayment date, interest accrues regardless of the minimum payment or installment repayment. But it’s not that I didn’t know, I was shocked to find out that the interest rate difference between the two was so big.

The minimum repayment amount is generally 10% of the total amount of the current bill, that is, the remaining 90% will be calculated interest and the details will appear in the next bill. The daily interest on the remaining unpaid amount is 0.05, but one thing to note is that the value date is calculated from the consumption date, not the repayment date.

The credit impact on the bank’s assessment of customers is different

In addition to the difference in interest, it is more importantly related to the bank’s assessment of personal financial capabilities.

Although no matter whether it is installment repayment or minimum repayment, it will not leave a bad record on the credit report, but for the card issuer, the two different repayment methods will still affect the bank's treatment. Customer strength assessment.

Choosing installment repayment is a relatively positive credit record for users, and it also helps to increase the credit limit and deepen cooperation with the bank, because if appropriate, the bank can make some money from you. Money, banks are naturally happy.

The minimum repayment amount means that if the cardholder has difficulty repaying all the amount payable before the due repayment date (inclusive), he can repay according to the minimum repayment amount stipulated by the card issuer, but he cannot Enjoy the interest-free repayment period, and the minimum repayment amount is 10% of the consumption amount plus other various payables. The minimum payment is listed on the current bill.

In order to improve the marketization mechanism of the credit card business, meet the public's increasingly rich credit card payment needs, improve the quality of credit card services, and promote the healthy and sustainable development of the credit card market, the People's Bank of China recently issued the "People's Bank of China on the Credit Card Business" Notice on Relevant Matters" (hereinafter referred to as the "Notice"), which will come into effect on January 1, 2017.

After using your credit card, you will receive a statement from the bank on the billing date. There are two amounts that we need to note. One is the amount due this period, and the other is the minimum payment amount. In fact, this is also a major benefit of credit cards. Once you spend money on the credit card and exceed your repayment range, you can choose to repay with the minimum repayment amount, so that it will not affect your personal credit. But this means that you can no longer enjoy the interest-free period.