The annual interest rate for credit cards is generally around 9 to 20. Generally, handling fees are charged based on the number of installments, and no interest is charged. If you use a credit card to withdraw cash, interest is generally charged at a daily interest rate of 0.05%, and compound interest is calculated monthly, but the annual interest rate does not exceed 20%.
According to Article 7 of the "Regulations on the Supervision and Administration of Credit Card Business of Commercial Banks": A credit card refers to a credit card that records cardholder account information, has bank credit lines and overdraft functions, and provides cardholders with relevant banking services. All types of media. Credit cards stipulated in my country's relevant laws ("Interpretations of the Standing Committee of the National People's Congress on Relevant Credit Card Regulations") refer to credit cards issued by commercial banks or other financial institutions that have all the functions of consumer payment, credit loans, transfer settlement, cash deposits and withdrawals, etc. Or an electronic payment card with partial functions. On December 1, 2017, the "English Translation and Writing Standards in the Public Service Field" was officially implemented, stipulating that the standard English name of credit cards is Credit Card.
Credit card consumption is a non-cash transaction payment method. There is no need to pay cash when consumption, and repayment will be made on the billing date.
Credit card annual interest rate
Annual interest rate = installment fee/(number of installments 1)*24 = single-period handling rate*number of installments/(number of installments 1)*24, The most common handling fee of 7.2 for 12 periods is equivalent to an annual interest rate of 7.2/(12 1)*24=13.29.
ICBC’s handling fee of 3.58 for 12 periods, the annualized interest rate is 6.61, which is equivalent to 1.1 times the one-year loan base interest rate of 6.0, and is charged in installments at 0.0358/13*24=0.06609 =6.61.
If the first installment is collected, the annualized interest rate should be divided by (1-installment fee). The initial payment is 0.0358/13*24/(1-0.0358)=0.06854 =6.85.
Influencing factors:
Policy of the central bank
Generally speaking, when the central bank expands the money supply, the total supply of loanable funds will increase, and the supply will be greater than demand, the natural interest rate will fall accordingly; conversely, if the central bank implements a tightening monetary policy to reduce the money supply, the supply of loanable funds will exceed demand, and the interest rate will rise accordingly.
Price level: The market interest rate is the sum of the real interest rate and the inflation rate. When the price level rises, market interest rates rise accordingly, otherwise real interest rates may be negative. At the same time, due to rising prices, the public's willingness to deposit will decrease while the loan demand of industrial and commercial enterprises will increase. The imbalance between deposits and loans caused by loan demand being greater than loan supply will inevitably lead to an increase in interest rates.
Stock and bond markets: If the securities market is in a rising period, market interest rates will increase; otherwise, interest rates will also decrease relatively speaking.
International economic situation: changes in a country's economic parameters, especially changes in exchange rates and interest rates, will also affect the fluctuations of interest rates in other countries. Naturally, the rise and fall of the international securities market will also create risks for the interest rates faced by international banking business.