Credit card installment payment refers to the process that when the cardholder uses the credit card to make a large amount of consumption, the bank pays the consumer funds of the goods (or services) purchased by the cardholder to the merchant in one lump sum, and then the cardholder repays the money to the bank in installments and pays the handling fee. According to the cardholder's application, the bank deducts the consumption funds and handling fees by stages through the cardholder's credit card account, and the cardholder repays according to the monthly recorded amount.
If you pay off the bill in full on the final repayment date, you don't need to pay any interest and late fees, and you can also enjoy the interest-free period given by the bank; The bill of the current month has not been paid off in full, and there is no interest-free period. All consumption will be calculated at the rate of five ten thousandths of daily interest from the date of consumption, with daily interest and compound interest every month. Generally speaking, the handling fee of credit card installment 1 year is lower than the annual cash withdrawal interest 18%, and higher than the bank commercial loan interest 1 year 5.3 1%. It is worth mentioning that in recent years, the loan interest rate of commercial banks has been lowered many times, but the standard of credit card installment fee and cash withdrawal interest has rarely changed.
The main benefits of credit card installment payment:
1. Enjoy first, then pay.
2. There is no guarantor, and the procedure is simple.
3. Fixed time and convenient payment.
4. Pay at will. The monthly repayment amount is optional.
5. More space to choose payment methods.
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Credit card installment repayment is not overdue, and credit card application installment repayment cannot be postponed. When a cardholder uses a credit card to make a large amount of consumption, the issuing bank will pay the cardholder's consumption funds to the merchant in one lump sum, and deduct the consumption funds from the cardholder's credit card account in stages according to the cardholder's application, and the cardholder will repay according to the monthly recorded amount. In the past, credit card installment mainly included bill installment and single consumption installment, and banks usually charged corresponding handling fees according to the number of installments. Whether it is bill installment or single consumption installment, the premise is to generate consumption behavior first, and then the bank will set installment repayment for the generated credit loan.