Yes.

Credit cards allow you to pay the minimum repayment. The minimum repayment of a credit card is a minimum repayment amount set when the cardholder cannot repay the full amount. It is usually 10% of the consumption amount in the bill plus other Fees such as handling fees, interest, and the unpaid portion of the previous minimum repayment amount are subject to the specific fees shown on the page. It should be noted that the minimum credit card repayment amount is the lowest repayment amount on the current credit card bill. If the repayment is lower than this amount, it will have a negative impact on personal credit. Moreover, interest will be charged after using the minimum repayment amount, and you can no longer enjoy interest-free.

1. Adverse effects of the minimum payment on a credit card

1) Interest generation: If you only pay the minimum payment when repaying a credit card, then you will have to wait until the credit card is due to pay back the minimum payment. On the payment date, interest will begin to accrue. Interest of 0.05% will be charged every day, and it is charged in the form of full penalty interest. That is, interest will also be charged on the repayment part, and compound interest will be calculated on a monthly basis. Therefore, if you continue to make the minimum payment, in the long run, you will have to pay more and more interest.

2) There is a risk of overdue payment: If you keep making the minimum payment, it will lead to more and more repayments, so in the long run, it may lead to overdue situations because sometimes the payments are not made.

3) It is not conducive to increasing the credit limit: If you want to increase the credit card limit, in addition to swiping more card purchases, you also need to repay on time, and banks prefer customers who repay in full and handle installments appropriately. Repayment is not conducive to credit card limit increases, and there is a possibility of the limit being reduced.

4) Make cardholders feel dependent: Some users feel that the minimum repayment on a credit card can alleviate the current repayment pressure, so they choose the minimum repayment every time. If things go on like this, the minimum repayment amount will continue to accumulate, which will make the snowball get bigger and bigger without you realizing it.

2. Credit card is actually a financial consumption tool, which is more suitable for consumption. But if you use cash, the daily interest rate for credit card cash withdrawals is 0.05%, that is, the daily interest rate for borrowing 10,000 yuan is 5 yuan, and you also have to pay cash withdrawal fees. The overall cost will be very high. Large purchases can be repaid in installments or with minimum repayments. However, no matter which repayment method is used, the calculation is based on equal principal and equal interest, and the interest is calculated repeatedly based on the total principal in each period. Moreover, there are no handling fees for credit card installments and early repayments. In this way, the annual interest rate of the credit card is actually not low at all.