1. What does credit card installment mean?

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.

2. how to calculate?

Take 12 staging as an example. In the eyes of bankers, the handling fee for each period is only 0.6% of the total amount, and that for the twelfth period is only 7.2%, which seems quite favorable.

However, is this really the case? This account really needs to be calculated. Let's assume that credit cards are used for installment payment. The installment amount is 65,438+02,000 yuan, divided into 65,438+02 installments, and the handling fee is tentatively set at 0.6%/ month, which is convenient for calculation. The actual situation is high and low. Here, we use this data to do a calculation. The handling fee is calculated on a monthly basis and has not been paid in one lump sum. So how should I calculate it specifically?

It took 1000 for the first repayment, 1 month for the second repayment, 2 months for the third repayment, 1000 for the third repayment, 4 months for the fourth repayment and 1000 for the twelfth repayment. In fact, it took us1+2+3+...+1+12 = 78 months. The total handling fee is still 864 yuan, and the annualized interest rate should be 864 ÷ 1000 ÷.

13.29 is the actual annualized interest rate of credit card installment with 0.6% handling fee declared by the bank.

Therefore, we can draw a general conclusion: in the bank credit card business, whether it is bill installment, single installment or cash installment, as long as the monthly fee is used to calculate the repayment amount of the equal principal and interest repayment method, the actual annualized interest rate of the equal principal and interest loan is converted into the annualized interest rate, which is actually twice the bank's advertised interest rate.