1. How to calculate overdue penalty for credit card?

Overdue penalty for credit card is charged based on 5% of the unpaid portion of the minimum repayment amount, generally starting from the overdue amount. Starting from two days, the longer the overdue period, the higher the liquidated damages incurred.

Suppose the cardholder owes 50,000 yuan to his credit card and the credit card is overdue for one month without actively communicating with the bank to apply for installment. Then, the overdue penalty that the cardholder needs to bear is 2,500 yuan. It is worth noting that this is just a rational calculation, and the specific calculation standards are still based on the calculation standards of the credit card issuing bank.

2. What is the difference between liquidated damages and late payment fees?

1. Late payment fees were called before the new laws and regulations in 2021. Before the new laws and regulations were introduced in 2021, the late payment fees were calculated according to the card holder’s standard. 5% of the unpaid amount will be charged on a compound interest basis, with interest calculated on a monthly basis. This will result in extremely high late payment fees, and the cardholder may not be able to pay back in the end.

2. New laws and regulations in 2021 stipulate that banks can only charge liquidated damages and can no longer charge late fees. They will be charged 5% of the unpaid portion of the minimum repayment amount. The new laws and regulations can prevent interest rollover. Benefits are generated, which reduces the financial pressure of cardholders and prevents them from being unable to pay their bills in the end.

3. How do banks select interest-free arrears?

Banks collect non-performing assets every year, and some arrears will also be interest-free, but not all arrears can be interest-free. , the main factors that the bank considers are the following:

1. The cardholder's willingness to repay: As long as the cardholder has the willingness to repay, he takes the initiative to inform the bank, and the bank will consider it as appropriate.

2. Overdue time: Generally, debts that are overdue for more than one year will be selected. Debts that are overdue for less than a year will be considered as still having the possibility of being recovered in full. .

3. Amount of arrears: Banks give priority to arrears with small overdue amounts that are not worthy of recovery through court proceedings.

4. Factors causing arrears: Banks give priority to non-subjective factors such as: accidents, unemployment, illness, major illnesses, etc.

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