Credit card installment payment refers to the process that when the cardholder uses the credit card to make a large amount of consumption, the bank pays the consumer funds of the goods (or services) purchased by the cardholder to the merchant in one lump sum, and then the cardholder repays the money to the bank in installments and pays the handling fee. According to the cardholder's application, the bank deducts the consumption funds and handling fees by stages through the cardholder's credit card account, and the cardholder repays according to the monthly recorded amount.
Installment payment is actually a loan provided by the seller to the buyer. The seller is the creditor and the buyer is the debtor. The buyer can get the goods or services he needs only by paying a small amount of money, but because the interest is included in the future installment, the amount paid for the same goods or services by installment is more than the amount paid in one lump sum.
Can I repay my credit card in installments?
In fact, credit cards can be repaid in one lump sum after installment, but they cannot be cancelled after installment. You can only apply for prepayment from the bank, not online. You can only call the bank service hotline to manual customer service, and the customer service will repay after passing the system audit.
But the key point is that credit card installment will involve handling fees, and ending the installment in advance and paying it back in one lump sum may not necessarily avoid the remaining handling fees. According to different bank credit card installment prepayment regulations, there are two schemes to collect the residual fees, one is to pay liquidated damages, and the other is that the residual fees are inevitable.
Most banks are the second option, and it is unnecessary to pay back the remaining expenses after prepayment, because the expenses cannot be reduced. It is better to save money and invest in short-term wealth management products to earn some interest, just every month.
There are also some banks that are the first choice, such as Bank of Communications credit card. Early repayment can reduce the remaining handling fee, but it needs to pay a penalty of 3% of the remaining principal, which means that the earlier the prepayment, the less cost-effective.
It should be noted that no matter which scheme, it is not necessary to repay the loan immediately after the application is completed. The bank will include the remaining amount to be repaid in installments in the next bill and then repay it before the end of the next repayment date. If you often repay in advance after installment, it will have an impact on the withdrawal amount.