How is credit card installment interest calculated?

The calculation method of credit card handling fee is: transaction amount × installment handling rate × number of installments.

The handling rates for different periods are also different and should be based on the standards of each bank. For example, if you spend 6,000 yuan in 3 installments, and the handling fee for the 3 installments is 1.95, then the installment handling fee for each installment is 39 yuan, and the monthly repayment amount is 2,117 yuan. Divided into 6 installments, the handling fee for 6 installments is 3.6, so the installment handling fee for each installment is 36 yuan.

I believe that many people will receive enthusiastic text messages or even phone calls from banks after using their credit cards to remind users that they can use the installment repayment service. The reason given by the bank is that installment has many benefits, such as extending the repayment period of the credit card, reducing short-term financial pressure, avoiding overdue credit cards, etc.

But in fact, the bank cannot afford to pay early if it is not profitable. It is obviously not good-hearted to suggest that users choose to repay in installments. So what are the benefits of credit card installment repayment for banks? In fact, it is very simple. Users' installment repayment can bring revenue to the bank. However, if the user repays in full before the final repayment date, the bank will not make any money from the user. dime.

Interest refers to the remuneration that currency holders (creditors) receive from borrowers (debtors) for lending currency or monetary capital. Including interest on deposits, loans and various bonds. Under capitalism, the source of interest is the surplus value created by wage workers. The essence of interest is a special transformation form of surplus value and is a part of profit.

Definition:

1. Money other than principal received from deposits and loans (different from ‘principal’).

2. Interest (interest), in abstract terms, refers to the value-added amount brought about when monetary funds are injected into and returned to the real economic sector. To put it less abstractly, interest generally refers to the remuneration paid by the borrower (debtor) to the lender (creditor) for the use of borrowed currency or capital. Also called sub-gold, the symmetry of the parent fund (principal). The formula for calculating interest is: Interest = Principal × Interest Rate × Deposit Term (that is, time).

Interest is the remuneration received by the owner of the funds for lending the funds. It comes from a part of the profits generated by the producers using the funds to perform operational functions. It refers to the value-added amount brought about when monetary funds are injected into and returned to the real economic sector. The calculation formula is: interest = principal × interest rate × deposit period x 100

3. Classification of bank interest

According to the different nature of banking business, it can be divided into two types: bank interest receivable and bank interest payable.

How to calculate the handling fee for credit card installment?

Credit card installment fee calculation formula:

Handling fee = Installment principal and each installment handling fee.

For example, if a credit card installment of 3,000 yuan is divided into 12 installments, the handling fee is 0.72, and the handling fee for each installment is 3,000/120.723000/12

Credit card bill installment application requirements:

1. Bill installment application time

From the transaction date to the repayment date, you can freely choose to install installments for transactions under RMB or USD accounts.

For transactions that have not been billed: You can apply for installment between the day the transaction occurs and 19:30 on the billing date corresponding to the transaction.

For bills that have been issued: You can apply for installments between the day after the bill date and the due payment date (for customers whose accounts have set up automatic repayment, the application deadline is 17:00 on the due payment date: 00).

2. Conditions for applying for bill installments

Applicants must hold a bank credit card, personal card master card, good card usage record, and no current delay in repayment. Customers who only hold commercial cards, business cards, purchasing cards, ANA guaranteed cards or supplementary cards cannot apply for bill installments at the moment.

3. Bill installment application amount

To apply for RMB bill installment, the minimum application amount each time is not less than RMB 300; to apply for USD bill installment, the minimum application amount each time is not less than RMB 300. $100. After successfully applying for RMB or U.S. dollar bill installments, the principal of each installment and each installment handling fee will be credited to the RMB account, that is, the U.S. dollar bill installment amount will be converted into RMB according to the exchange rate specified at the time of application.

How is the interest on credit card installment calculated?

Credit card installments have no interest and only charge handling fees. Take China Merchants Bank as an example:

Cardholders can provide personalized installments of 2, 3, 6, 10, There are multiple options of 12, 18, 24 and 36 periods, and the single-period handling fee is 0~1.67.

The calculation method of the handling fee for each period:

The handling fee for each period = the application amount and the handling fee rate for each period

For example: the application amount is 10,000 yuan, The handling fee rate for each period is 0.05, ***10 periods

The handling fee for each period=100000.005=50 yuan

Then the handling fee for 10 periods is 1050=500 yuan.

Extended information

The following transactions cannot apply for bill installments:

1) Cash advance transactions, installment transactions, real estate transactions and various expenses (such as annual fees, interest, late payment fees and other credit card charges);

2) Funds that have been applied for foreign exchange purchases;

3) Other transactions specified by the Bank's Credit Card Center.