First, credit card installment
1. What are bill installment and cash installment?
Credit card installment includes consumer installment, bill installment, cash installment, etc. Generally speaking, the interest rate of consumption installment and bill installment is the same, while the interest rate of cash installment is generally higher than that of bill installment and consumption installment. Here, I will focus on the difference between credit card bill installment and cash installment.
Bill installment refers to the financial function of installment repayment of RMB and USD transactions of credit cards, including the installment of unbilled transactions and invoiced transactions. There is a handling fee in installments, but it can reduce the repayment pressure.
Cash installment is the business of withdrawing cash and repaying money by installment provided by the cardholder. After successful processing, the money will be transferred to the debit card in the cardholder's own name. Simply put, cash installment means borrowing money by credit card.
2. Credit card installment is interest-free and free of charge.
Credit card installment repayment is interest-free, which is the usual publicity of banks. However, once you apply for credit card installment repayment, you will find that there is a handling fee. Warm reminder: credit card installment repayment is interest-free and fee-free. If converted into actual annual interest rate, the fee is still very high.
The actual annual interest rate of credit card installment is not a simple monthly interest rate * 12, but there is a time value in it. The following is the method to calculate the actual annual interest rate of credit card installment:
Take the Bank of China as an example. Your bill is 12000 yuan, which will be paid in 12 installments. If the monthly rate is 0.6%, the monthly payment is12000/12000 * 0.6% =1078.
3. Credit card installment prepayment fee will be charged as usual.
Except for ICBC and China CITIC Bank, most banks want to return their credit cards in advance after staging, and the handling fee is not refundable. For example, the Construction Bank stipulates that the handling fee shall be collected by stages, and the cardholder has successfully handled the bill by stages. If he applies for prepayment, he must pay off all the remaining principal and handling fee in one lump sum, and the installment handling fee collected will not be refunded.
Second, Alipay is staged.
The daily interest rate of Alipay small loan is 0.05%, the monthly interest rate is about 1.5%, and the annual interest rate is about 10000/800 yuan, which is relatively high, and the bank interest rate is about 0.6%-0.75.
Third, on the whole, Alipay's loan interest is higher than the installment interest of bank credit cards.