After using credit cards, many friends will apply for the minimum repayment amount or installment repayment because they can't repay in full. But recently, someone asked Bian Xiao what would happen to the minimum repayment amount of credit cards? What are the consequences? Let's take a look!

What will happen to the minimum repayment of credit cards?

1, resulting in bad credit records.

If you always choose the lowest repayment, the interest will increase, which will make the arrears more and more, thus causing the situation of making ends meet. Once the capital chain breaks, it is easy to fail to repay the credit card, which leads to overdue. Even some people will apply for online loans to avoid overdue, thus going astray, squandering credit information and falling into deeper debts. Or because the deadline has left a stain on the credit report, it is not worth the loss.

2. High interest expense

Friends who have used the minimum repayment method know that the minimum repayment method will charge a full penalty interest. From the due date, it will charge five ten thousandths of the full amount of the bill of the month, and compound interest on a monthly basis until it is fully paid off. If the cardholder always chooses the method of minimum repayment and calculates the interest according to compound interest, the more he owes, the more he will easily form a vicious circle and push himself to the Jedi.

The loan application was rejected.

Frequent minimum repayment will also cause cardholders to fail to pass the review of the credit card application platform when handling loans, because they will query the user's personal credit report. If they see the repayment record of the credit card, they will think that the cardholder's repayment ability is insufficient, thus refusing to approve the loan.

4. Reduce the quota and seal the card

The minimum repayment method can show the repayment ability of the cardholder from the side. If the cardholder always chooses this repayment method, it will make the credit card application platform question its repayment ability, thus ensuring the safety of funds, reducing the cardholder's credit card limit and even sealing the card.

5. It is not conducive to credit card withdrawal.

Banks may think that customers' repayment ability is insufficient because of this behavior, and may reduce the quota, which is not conducive to the increase of the quota.