Is a cash installment considered a loan?

Cash installments are not loans.

Cash installment can allow us to obtain working capital, but in essence it is a financial function of a credit card (debit card), not a loan. Successful application will be recorded in the credit report It is enough to say that it is in the credit card (debit card) record, not the loan record. There are two forms of cash installment, and the records on the credit report will be different. One is the most basic cash installment, which is handled within the limit of a credit card (credit card). It will occupy the available limit of the credit card (credit card) and will not be recorded separately on the credit report. You will see the credit card when you check the credit report. The repayment amount in the (credit card) record increases and the available limit decreases. The other type is special cash installment, which has an exclusive limit. After application, it will not occupy the fixed limit of the credit card (debit card), but a separate account will be opened to record the loan and repayment information of the special installment. Some banks will display the credit report in the form of an electronic credit card (credit card), recording the total credit card (credit card) limit, monthly repayment amount, etc.

Is installment a loan?

Credit card installment is a form of loan, but it should be noted that the installment interest on credit cards is relatively high. Most domestic banks have credit card installment services. Installments can generally be divided into mail order installments, bill installments, or shopping mall installments according to different occasions.

1.

Mail order installment refers to ordering installment products in an online mall, or making a phone call or applying for installment mail order;

2.

Bill installment is the simplest installment method. Banks basically support this method, and it is easy to apply for it. Users only need to submit an installment application to the card-issuing bank by phone or other methods after swiping their card for consumption and before monthly bills are issued.

3.

Shopping mall installment means that cardholders go to shopping places and make purchases in "malls" where installment can be carried out. When checking out, please show the shopping mall's credit card that supports installment payment and indicate that you need to pay in installments.

The above is the method of credit card loan.

Loan repayment in installments is counted as several loans

Loan repayment in installments is counted as one loan. It is understood that loan installment mainly refers to the operation of repaying the loan in installments according to the applied loan term after the user applies for a loan. For example, if a user applies for a loan of 10,000 yuan and the loan period is 12 periods, it means that the user has chosen to repay in 12 periods. Installment repayment can effectively reduce users’ repayment pressure, but for users, the risk of overdue payments still exists.

1. Installment Loan

An installment loan is a loan that the bank agrees to the borrower to repay in installments within a certain period of time. When banks grant such loans, they must investigate the borrower's financial status and repayment ability. At the same time, the loan contract must determine the installment repayment time, the amount of each installment, and the calculation of interest. For example, a bank issues an installment loan of RMB 1.2 million, which is issued at the beginning of the year and recovered at the end of the year. The loan of RMB 100,000 is recovered at the end of each month and the interest is settled once at the end of the year. This method not only meets the needs of large amounts of funds for borrowers, but also reduces the interest burden from installment repayments.

2. What to do if the loan is overdue

Due to insufficient funds in the repayment account, some accounts are overdue: In this case, you only need to make up the overdue amount immediately. It is recommended that you save more funds for your next repayment. It should be noted that once overdue bills are confirmed, all or part of the overdue bills will be included in the credit report.

Overdue due to objective reasons: unable to make deposits while on a business trip, transfers and remittances returned, forgetting to deposit, and only need to return the loan immediately after discovering it is overdue. You can avoid forgetting to repay your loan by setting memos and reminders. A delinquency in this case will also be recorded on the credit report.

It can be seen from the above. Loan repayment is calculated as one payment in installments. However, it is still recommended that you repay within the repayment period to avoid overdue payments, otherwise you will be blacklisted by the bank, which will affect your second loan and your credit score. At the same time, you also understand that loans Installment is a certain grace period given by the bank to the borrower. If you encounter unreasonable behavior, you must take up legal weapons to protect your reasonable rights and interests.

Is installment payment considered a loan?

It is a bank loan. This amount is paid to the store in advance by the bank.

Extended information:

Pay by Installments are mostly used in product transactions with long production cycles and high costs. Such as the export of complete sets of equipment, large-scale vehicles, heavy machinery and equipment and other products. The method of installment payment is that after the import and export contract is signed, the importer first pays a small part of the payment to the exporter as a deposit, and the rest of the payment is paid after part or all of the product is produced, shipped, or after the goods arrive for installation and test run. , investment and repayment in installments when the quality guarantee period expires.

Characteristics of behavior

The method of installment payment is that after the import and export contract is signed, the importer first pays a small part of the payment as a deposit to the exporter, and the rest of the payment is in the product part or Payment will be made in installments after all production is completed and shipped, or when the goods arrive for installation, commissioning, investment and the expiration of the quality guarantee period.

The buyer and seller sign a contract at the time of closing the transaction, and the buyer pays the seller in installments for the purchased goods and services within a certain period of time. The date and amount of each delivery of goods are stated in the contract in advance.

Term form

There are also many forms of installment payment terms: the home buyer pays in installments himself, usually paying the down payment first, and then waiting for the delivery notice from the real estate agent. The second payment is divided into three installments, and the third payment will be paid within a certain period of time after moving in. In this way, the total house payment paid by the house buyer will usually be more than the one-time payment, but at the same time it can reduce the losses that may occur in the off-plan house, such as the house being "unfinished", or if the house price falls more than the down payment and the house buyer's own financial situation. Conditions change, etc.

Loan installments usually take several years to be paid off. The key here is, in addition to the down payment, when the installments start. In other words, when the lending bank hands over the home buyer’s loan to the real estate. business. This time can start as soon as the loan procedures are completed, or it can start when the house is delivered. The latter is more beneficial to the home buyer.

Of course, how to pay is not a matter of wishful thinking for home buyers. If the real estate developers themselves do not have the strength, they must rely on the home buyers’ money to build the house. They usually will not agree to the time for the second installment of the home buyers’ payment. When the house is handed over, in this case, the buyer can only decide whether to buy the real estate developer's house besides fighting for it.

Are installments and loans the same? What is the difference?

Instalments and loans are two different concepts. A loan simply means borrowing money that requires interest. Loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must be returned.

Loans in a broad sense refer to the general term for lending funds such as loans, discounts, and overdrafts. Installment refers to the repayment method, which can be divided into 3 installments, 6 installments, 12 installments, 24 installments, etc. In addition to installments, loans also have other repayment methods, such as interest first and principal later, borrowing and repaying at any time, equal amounts of principal and interest, equal amounts of principal, etc. Loan refers to the entire process, including borrowing money, taking money, and paying back money, while installment only refers to how to repay the money.

Instalment payment

The installment payment method was developed after World War II. At the beginning, it was limited to the purchase of general daily commodities or services. Later, with the rapid development of productivity, the scale of industrial and agricultural production expanded day by day, and the required expenses increased. In addition, with the development of bank credit, the field of installment payment expanded to the purchase of large machinery, equipment and raw materials by enterprises.

With the improvement of China's financial services and changes in people's consumption habits, installment payment consumption, which is popular abroad, has been introduced into the country and has been quickly recognized by domestic consumers. Those who consume through installment payment are usually young people who have poor payment ability but have consumption needs. The products they consume are usually laptops, mobile phones, digital products, etc.

Instalment payment options are usually offered jointly by banks and installment payment providers. Banks provide consumers with personal consumption loans equivalent to the amount of goods purchased. Consumers use the loans to pay suppliers. At the same time, suppliers provide guarantees to consumers and assume irrevocable joint liability for debts. Young people who use installment payment methods are often called "installment people".

Instalment 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 obtain the required goods or services after paying only a small part of the payment. However, because future installment payments include interest, the amount paid for the same goods or services by installment payment is higher than that of a one-time payment. The payment for goods is more.

Is credit card cash installment considered a loan? Will I be subject to a credit report? The difference is obvious

Credit cards bring many conveniences to people's lives. Not only can they provide interest-free overdrafts, but they can also obtain cash in installments. Many people think that cash installment is borrowing money with a credit card, but they will ask whether cash installment with a credit card is a loan and will it be subject to a credit report? Today let’s take a look at the differences between credit card cash installments and loans.

Is credit card cash installment considered a loan? Will I be subject to a credit report?

1. Credit card cash installment is not a loan

Because the bank’s credit card department and loan department are two different departments, each performing its own duties. Although you can get cash for cash installment, but based on your credit card usage, after submitting the cash installment application, it will be reviewed by the credit card department and will not be transferred to the loan department.

2. Credit citation for credit card cash installment meeting

Credit citation can also be distinguished from loans. There are two types of credit card cash installments: within-limit installments and special-limit installments. No matter which type of payment is processed, it will be displayed in the credit card record instead of the loan record. Different types of cash installments will be displayed differently on the credit report.

If the cash installment is within the limit, the credit report will not be separately reported. After successful application, compared with the previous credit card records, you will find that the available limit is reduced and the monthly repayment amount is increased; while the special quota installment is usually separately Open an account and it will appear as a new credit card on the credit report, with separate records of the special installment amount, monthly repayment amount, repayment records, etc.

The above is the relevant introduction to "Is credit card cash installment a loan? Will it be subject to a credit report?" The last thing to remind is that the credit card cash installment must not be overdue. If it is overdue, you should try to reduce the outstanding principal to 50,000. Otherwise, if the overdue time is long, you may be charged with a credit card crime, and the consequences will be much more serious than an overdue loan.