How long does it take to start calculating interest after credit card consumption?

Using a credit card to make purchases normally, as long as the balance is paid off before the final payment date, no other fees and interest will be incurred. This time is called the interest-free period. Under normal circumstances, the longest interest-free period in most banks is 56 days. However, if the following situations occur, interest will accrue:

1 Overdue interest: If the entire repayment amount is not repaid before the due repayment date (inclusive), we will need to pay interest, which is from Interest will be charged on a daily basis from the recording date of each transaction until each outstanding balance is paid off. What should be noted here is that the accounting date is not the final repayment date. Generally, the accounting day is the next day after we consume.

2 Minimum repayment interest: Each bank now has a minimum repayment ratio. If you are not able to pay off all the debt, paying the minimum repayment is not considered overdue, and it will not affect our tax collection. However, a certain amount of interest will accrue, which is generally charged based on the full repayment and the unpaid portion, starting from the date of consumption. If the repayment amount on the repayment date is less than the minimum repayment amount, we will also pay a repayment penalty based on a certain proportion of the unpaid portion of the minimum repayment amount. Therefore, it is recommended that we repay the loan on time, and if the repayment capacity is insufficient, try to pay the minimum repayment.

3 Installment interest: Generally, banks will have fixed-term installment repayment methods such as 3, 6, 9, 12, 24, 36, etc. There will be installment interest rates, and there are many now. Banks call it installment fees, which vary from bank to bank. If the bill is not repaid in full before the repayment due date, interest will only be charged on the current portion of the installment payment. Interest will be calculated on a daily basis from the date the installment is carried forward to the date of repayment. Interest.

If the credit card is repaid in full on the repayment date, the bank will not charge any interest, and it will not affect your credit report. However, interest will be calculated on overdraft withdrawals from the day of withdrawal, interest will be calculated on the minimum repayment from the second day after the card is swiped, and interest will be calculated on overdue payments from the first day of overdue payment. Credit card overdraft interest is generally calculated as a daily interest rate of 0.5% within 15 days from the bank accounting date (including the current day). If it exceeds 15 days, it will be calculated as a daily interest rate of 10%. If it exceeds 30 days or the overdraft amount exceeds the prescribed limit, Yes, calculated based on daily interest rate of 15%. In other words, if you don’t want to pay extra interest, it is best for cardholders to repay in full on the repayment date.

Be aware of when credit card overdue interest will be deducted

If the payment is not paid on the 1st, the payment may not be deducted until the 3rd.

Generally, interest is calculated from the expected second day. That is to say, if the repayment date of each month is the 1st, then overdue interest will be calculated starting from the 2nd.

Of course, some banks will have a buffer period of one to two days. That is to say, if the payment is not repaid on the 1st, the payment may be deducted on the 3rd. , interest calculation will begin.

My Bank of China credit card is bound to a debit card, and the payment is automatically deducted every month, usually on the final repayment date.

Automatic repayment will detect the debit account one day before the due repayment date. The deduction will be made and credited to the account on the due repayment date. The deduction result will be notified by SMS the next day. You need to ensure that there is sufficient balance in your account at least one day before the payment due date. If the automatic deduction fails this time, you will be notified of the second deduction time via text message (there will be no second deduction for repayment using a debit card from another bank). For details, please refer to the text message prompt content or call the credit card customer service hotline for enquiry.

The above content is for your reference, please refer to actual business regulations.

That’s it for the introduction of when credit card interest will be deducted.