Credit card is a non-cash payment method and a simple credit service. To put it bluntly, it is a kind of credit transaction.

Advantages of credit cards

1. You can use the card to make purchases without any money, and there is an interest-free period of 20 to 56 days.

Tips:

Make reasonable use of the interest-free period. During this period, you can do some financial management to earn interest. After the repayment is due, the income will be in your pocket. It is not recommended to use your credit card to make purchases if you don’t have any money, unless you encounter a special emergency.

To control your desire to spend money on credit cards, you must develop good accounting habits.

For example, if the credit card limit is 50,000, do we dare to use up the 50,000 limit in a month?

Assuming that we have 3,000 yuan in cash for consumption this month, it is best not to use credit cards for more than 3,000 yuan. On how to effectively use the interest-free period, Maruyi has made a simple table for everyone to understand:

Then the total handling fee we should pay is 10.5×12=126 yuan. How is this annualized interest rate calculated?

This is the calculation on the leaflet:

126/3000*100%=4.2%

It seems not bad! But is it really only 4.2%?

What this means is that we borrowed the 3,000 yuan from the beginning of the year to the end of the year?

But we are obviously paying back the principal in each period. In the last period, the principal is only 250 yuan, and the handling fee is 10.5 yuan, which is equivalent to an annualized interest rate of 50.4%.

The following are the credit card installment rates and corresponding actual annual interest rates of various banks, for reference only:

This algorithm has obviously gone to the other extreme. According to his meaning, borrowing 3,000 per year, the interest is 3,000 × 8% = 240 yuan, but in fact, our interest payment is only 126 yuan per ***.

However, as soon as you start installment, you become a card slave and work for the bank all year round. It is recommended that you do not spend more than you can repay.

03

Minimum repayment pitfalls

Is there anything more pitiful than installment payment? Calculate interest in installments!

You may not understand this calculation, let me explain it:

8000×12 (here are the 12 days from the 20th of his consumption date to the day before the repayment date. The interest-free period is gone, and interest is calculated based on RMB 50,000) * 0.0005 + (8000-800) * 15 (interest is also calculated based on RMB 50,000 for the 15 days from the repayment date to the repayment date) * 0.0005 = 102 yuan

If there is no such calculation, we may think that the unpaid portion of 7,200 yuan will only be calculated as loan interest of 50,000 yuan after the repayment date. In fact, the interest on consumption from the consumption date to the repayment date also needs to be calculated! So everyone must pay attention to this pitfall, which is also called segmented interest calculation.

The meaning of segmented interest calculation is that if you only repay part of the amount on the repayment date, interest will still be calculated on the full amount from the consumption date to the repayment date, but after the repayment date, interest will be calculated on the unused amount. Pay off part of the interest accrual.

If you can't pay it back on the same day but don't want to pay it in installments, then use Borrow to turn over the money in two days, at least only the interest on the loan after the repayment date will be counted.

04

Full penalty interest

Is there anything more pitiful than segmented interest? The full amount of penalty interest counts as one!

Let’s take a look at a piece of news first:

In March 2016, Li Xiaodong spent more than 18,000 yuan with his CCB Long Card credit card, but 69 yuan was not repaid. However, 10 days later, More than 300 yuan in interest was generated.

After calling CCB’s customer service number several times, Li Xiaodong learned that CCB charges overdue interest on credit cards by calculating the total amount of the monthly bill, not the unpaid portion.

Full penalty interest is a credit card interest calculation method. It means that if the cardholder fails to repay the entire debt on the due date, interest will be calculated on the entire consumption amount. That is, from the date of consumption to the date of repayment in full, the recurring interest is calculated at 0.5% per day.

However, fortunately, many banks have launched time tolerance services, which can provide cardholders with a grace period of 1 to 3 days for repayment.

Look at these deceptive interest calculation methods, so everyone must understand it clearly before using a credit card, and don’t fall for it easily!

05

Don’t save money on credit cards

It is estimated that there are many friends who save money on credit cards.

Credit cards and debit cards are different. Not only do you get no interest when you deposit them, but if you want to withdraw cash, you will also be charged a handling fee! If you accidentally save it, you can only put it there and wait for the next repayment.

06

Don’t rush to cancel the card after paying off the overdue balance

Some friends don’t understand. After paying off the overdue balance, they cancel the card in a fit of anger. Log out, don’t be impulsive! Because credit card overdue records are generally retained in personal credit reports for five years.

If you do not continue to use the card after paying off the bill, the overdue record will still be retained in your credit report after five years, which will affect your application for other credit cards. , apply for a mortgage or other loans, that is really annoying.

Summary

1. After applying for a credit card, you must activate it in time. By the way, remember to receive the card opening gift within the specified time.

2. The installment interest is high, so make reasonable use of the interest-free period and do not spend more than you can repay.

3. The minimum repayment is calculated in installments, so don’t use it lightly. If you don’t want to pay it in installments, just borrow it and turn it around for two days.

4. The full penalty interest rate is very miserable, so be sure to read the explanations of various rates on your credit card in advance.

5. Don’t deposit money into your credit card. If you accidentally deposit it, don’t withdraw it. Use it to pay off next month’s bill!

6. After paying off the overdue balance, don’t rush to cancel the card!