How should I put it? There are advantages and disadvantages! The upper and lower limits have been cancelled. There are pros and cons! Many people may not understand what it means! So today I will explain it to you in a simple way. In the past, the interest rate after overdue was as high as 50,000 yuan per day and as low as 35,000 yuan per day. For example, for 100 million, the interest rate was up to 5 yuan per day, so the interest rate would be between 12.75% and 18.25%. But now the upper and lower lines of this credit card have been cancelled.

In the future, banks will independently negotiate with cardholders to formulate it. Important matters are formulated through independent consultation. Everyone who knows the bank knows that Mihang registers customers separately and implements different standards. The final result may be that in order to retain customers with good qualifications, the interest rate will be reduced, and the interest rate for those with poor qualifications will be increased. In other words, if there is a department When a customer is overdue, the interest rate will be higher than the previous 50,000 yuan. Even if calculated based on the current 50,000 yuan, it has exceeded the new regulations on private lending interest rates. So can banks still increase the interest rates of credit cards?

Because the bank is not a private loan, but a licensed financial institution, it is not bound by this clause, so friends who are in debt must pay attention.

Indeed, starting from January 1, 2021, the central bank has liberalized the management of credit card overdraft interest rates, and the credit card departments of each bank will negotiate with cardholders themselves. This is also the first step in the market-oriented reform of interest rates. An important aspect of progress. , so is this a good thing or a bad thing for cardholders and banks?

According to the new regulations, the "Notice of the People's Bank of China on Promoting the Market-oriented Reform of Credit Card Overdraft Interest Rates" also cancels the central bank's previous upper and lower limit management of credit card overdraft interest rates. At that time, the central bank decided to implement upper and lower limit range management for credit card overdraft interest rates for each bank from January 1, 2017. The upper limit was 5/10,000 daily interest rates, which is an annualized interest rate of 18%, and the lower limit was 5/10,000 daily interest rates. 0.7 times, that is, the daily interest rate is 3.5/10,000, and the annualized interest rate reaches 12.6%.

In the past, the central bank set the upper and lower ranges for credit card overdraft interest rates. Now it seems that the interest rates are relatively very high. Because credit cards are used first and then repaid, if overdraft interest rates are involved, it is usually because the cardholder has made overdue or minimum payments. If the loan is overdue, banks will generally charge liquidated damages, usually at an annualized rate of 6%, which adds up to 24%. This interest rate is already very high. To a certain extent, it is no longer a commercial interest rate. It can be called a punitive interest rate.

In August 2020, the Supreme People's Court newly revised the "Regulations of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases", which will be released on the 20th of every month with the authorization of the National Interbank Lending Center by the Central Bank. Four times the one-year loan market quoted interest rate (LPR) is used as the standard to determine the upper limit of judicial protection of private lending interest rates. The current LPR interest rate is 3.85%, so the highest standard for private lending interest rates is 15.4%, which is far lower than the overdraft interest rate of credit cards.

From a financial logic point of view, the interest rates in the banking industry should be lower than private lending rates, and the same applies to credit card overdraft rates. Because if the borrower fails to repay the loan as scheduled, the bank, as a licensed lending institution, can protect its rights and interests through legal collection, registering the defaulter with the People's Bank of China for credit reporting, and suing in court. Private lenders can only file a lawsuit in court. In contrast, borrowers are more willing to actively repay loans from banks and other financial institutions, and naturally the borrowing interest rates are lower.

Therefore, the new regulations issued by the central bank this time will help credit card holders successfully negotiate with banks to lower their credit card overdraft interest rates, at least to below the level of private lending rates. . This is actually the result that the central bank hopes to see, which can successfully reduce the debt pressure of cardholders. If you don’t have a bank credit card debt and you can’t repay the interest, then when can you repay the principal?

It is foreseeable that in the future, various banks will also proactively adjust credit card overdraft interest rates to a reasonable level, a level that is relatively fair to the market. On the one hand, it will help banks expand their credit card business, and on the other hand, it will also provide Reduce the burden on cardholders. However, we would like to remind credit card holders here that among all types of personal credit loans, credit card overdraft loans are still the ones with relatively high interest rates in the lending market. Borrow carefully to avoid causing your own debt crisis.

The most important purpose of a credit card is to facilitate transactions. Develop good card usage habits and strive to repay the loan on time before the repayment date. Don’t develop the habit of frequent credit card borrowing. This is the best credit card How to use.

Once upon a time, when credit cards entered my life, it brought me a sense of joy and happiness after my vanity was satisfied. In those years, major banks rushed to call me to recommend applying for a card, and the limit was getting higher and higher. However, later I almost emptied all the money in my credit card and started a business with others. As a result, I lost everything. The huge debt weighed me down. Now I finally see the "sincerity" of the bank. The original sweet words are now gone. Collection calls come one after another, becoming more and more severe. I am still struggling to this day.

I was a little happy when I heard that credit cards were completely "unlocked", but this expectation soon disappeared. The POS machine card swiping fee has risen instead of falling. I don’t know why. It used to be more than 30 yuan, but now it’s 63 yuan for 10,000 yuan. Is this the benefit of loosening interest rates?

A credit card is like a big tree. There are too many parasitic pests on this big tree. Everyone is trying their best to absorb the nutrients they need, regardless of the life and death of others.

The road is long and the night is also long. You must walk your own path in a down-to-earth manner and do not follow blindly or be gullible.