Is there a difference between repaying a credit card in full in one go and repaying it in full in several installments?

1. Conceptual differences

1. Full repayment: The full repayment amount refers to the cardholder repaying all dues before the due repayment date (inclusive) The payment can be interest-free for a certain period of time as stipulated by the card issuing bank, and you can enjoy the interest-free repayment period. Generally, the credit card bill will be issued the next day, and the current bill will be notified in the email or paper bill. Full repayment amount (total repayment for the current period).

2. Installment repayment: Installment repayment means that there will be multiple repayments, and the repaid principal and interest will be allocated to each repayment.

2. The difference in repayment fees

1. Full repayment calculation formula: Full repayment amount = 100 of the cash advance transaction amount for consumption within the credit limit . If the "full repayment amount" is paid in full before the due payment date, no interest will be charged. It will not affect personal credit.

2. The installment repayment fee is relatively high, generally higher than the commercial loan interest rate for the same period. The shorter the installment period, the lower the fee.

3. Differences in the impact on credit

1. The full repayment of a credit card is relative to the minimum repayment. Once you spend money on your credit card and exceed your repayment range, you can choose to repay it with the minimum payment amount, so that your personal credit will not be affected. But this means you can no longer enjoy interest-free benefits.

2. Installments must be repaid on time, otherwise it will not only increase handling fees but also reduce credit, which will have an impact on future borrowings and loans.

Extended information:

1. Consequences of overdue credit card repayment

1. Liquidated damages, usually the minimum repayment amount, 5% of the unpaid part .

2. The interest is high, and the interest is compounded. The interest rate is very scary when the debt is large.

3. Overdue credit records will be stained, resulting in the inability to handle financial needs such as house purchases and loans within the next two years.

4. If the payment is overdue for more than 3 months, and the amount exceeds RMB 10,000, and the bank has failed to pay multiple reminders, you will not only have to bear the repayment, but may also bear criminal liability.

2. Disadvantages of credit card products

1. Credit cards can easily lead to excessive consumption. This is a common problem among people who are in credit card debt. It is painful to swipe a card without paying money, so they spend even more uncontrollably by swiping the card.

2. The annual interest rate of credit cards is as high as 18, which is really high and can make borrowers lose money quickly.

3. Credit card debt brings mental stress. Some card slaves report that they are often afraid to open their mailbox or mail.

4. If your credit is not good, the cost of borrowing money will be higher, or you may even be unable to borrow money.

5. Credit cards provide a choice of using debt to support debts or drinking poison to quench thirst, causing debts to get out of control.

Reference: Baidu Encyclopedia - Credit Card

Reference: Baidu Encyclopedia - Full Repayment

Reference: Baidu Encyclopedia - Installment Repayment

What is the difference between full repayment and minimum repayment on a China Merchants Bank credit card?

1. If the China Merchants Bank credit card is repaid in full after using the card, no interest or fees will be charged. If the final repayment date specified by the bank is exceeded, interest at a daily rate of 0.005 will be charged. .

2. When withdrawing cash with a card, you do not enjoy the interest-free treatment. A cash withdrawal fee of 1% of the cash withdrawal amount is charged, with a minimum of 10 yuan. After cash withdrawal, interest will be charged based on the daily interest rate of 5/10,000, and compound interest will be charged monthly.

3. If you cannot repay in full after consumption or cash withdrawal, you can repay according to the minimum repayment amount, that is, 10% of the amount payable in the current period and the relevant daily interest rate of 0.005% of the interest fee. There will be no Affect personal credit record. To repay according to the minimum repayment amount, it is best to pay attention to each period's statement, which is listed above.

4. The minimum repayment amount is: Minimum repayment amount = 10 cash advance principal 10 non-cash advance transaction principal 100 fees 100 interest 100 excess consumption 100% The minimum repayment amount of the previous period has not been Pay off part of the 100% single installment amount.

As long as you repay the minimum amount of your bill before the payment due date, no late payment fees will be incurred and your personal credit will not be affected.

However, recurring interest will accrue. All consumption in the current period will accrue interest from the accounting date (usually the second day after consumption), with a daily interest rate of 0.05% until you pay it off in full. .

Extended information

Credit card limit refers to the maximum overdraft amount that a credit card can have. A brief introduction to the credit card limits of China Merchants Bank is as follows: the limit of regular credit card is generally RMB 3,000 to RMB 10,000, the limit of gold card is generally RMB 10,000 to RMB 50,000; the limit of high-end credit cards such as platinum card is more than RMB 50,000.

The initial credit limit of China Merchants Bank is comprehensively assessed by the bank based on the information you provide when you apply for a credit card.

When applying for a China Merchants Bank credit card for the first time, it is recommended that you prepare some proof of financial resources, which will help to issue a higher limit.

Proof of financial resources can be bank salary records, income tax withholding certificates (tax payment certificates), or documents proving the market value of houses, cars, deposits and investments, etc. that can prove your financial level.

The real estate certificate must contain the name of the person or his/her spouse or minor children, with proof of relationship attached. Applicants who provide real estate certificates also need to submit copies of any utility invoices in the past three months; the driving license must be in their own name.

Reference source China Merchants Bank_China Merchants Bank credit card limit

What are the advantages and disadvantages of credit cards

Advantages of credit cards:

1. Safe consumption.

When cardholders are shopping, swiping the card can save time in paying cash and getting change. At the same time, credit cards are more secure than cash consumption. Once the cash is lost, it is impossible to recover it, but if the credit card is lost, , as long as you enter the wrong secret three times, the card will be automatically locked.

2. Interest-free overdraft consumption.

Credit card is a kind of consumption that does not require a deposit to be overdrafted. From the generation of this consumption bill to the repayment date generated by the bank, as long as the full amount is paid off, there is no need to pay anything to the bank. Interest.

3. Enjoy discounts.

Card holders can enjoy fixed discounts when making purchases at merchants designated by the bank. For example, in the previous cooperation between Bank of Communications and Xinbanban, all cardholders can enjoy a 50% discount as long as they use Bank of Communications credit cards to make purchases every Friday.

4. Credit accumulation.

While using a credit card, you can also accumulate personal credit. It is also helpful for cardholders to use the card correctly and maintain a good credit report in their future life.

5. Transparent consumption.

Before the reconciliation day of each month, the bank will send the last month’s consumption bills to the cardholders for free by express delivery, so that everyone can clearly know each consumption expenditure. It greatly improves the transparency of consumption.

6. Redeem points for gifts.

In order to encourage users to use credit cards for consumption, card issuers have also set up a function to accumulate points. By using points, cardholders can participate in various lottery activities throughout the year and even redeem them for gifts.

7. Dual currency consumption.

As we all know, credit cards include dual-currency cards and single-currency cards. Dual-currency cards mean that cardholders can make purchases at home and abroad; single-currency cards mean that cardholders can make purchases at home or abroad. towards consumption. One of the great advantages of dual-currency cards is that cardholders do not need to exchange foreign currencies when spending abroad, they can directly swipe their credit cards, saving some unnecessary trouble.

Disadvantages of credit cards:

1. Overdue payments require high interest rates and affect credit reporting.

If the cardholder does not manage the card properly during use. Failure to repay on time on the reconciliation date. Then the bank will charge users high interest rates. At the same time, once the cardholder repays overdue, it will be reported to the People's Bank of China's credit reporting system, which will create a bad record for future credit.

2. Blind consumption.

Nowadays, many dazzling products appear in our lives. In order to reduce people's purchasing pressure, many merchants will sell products in installments.

At this time, many people will use their credit cards to "swipe" everything once they see the items they want in the center, failing to correctly consider their own repayment ability. Another point is that swiping a card is not a cash payment, which can easily lead to people spending blindly, thus bringing a financial burden to their lives.

3. Stealing credit limit.

Another function of credit card consumption is password-free consumption. Many people will activate this function if they want to pay quickly and conveniently. But if the cardholder's credit card is lost and someone else picks it up and uses it for consumption, the credit limit can be stolen at any time.

4. An annual fee is required.

When using a credit card, the card issuer will charge you a certain annual fee.

The credit card repayment method is to repay in full, but will it affect your credit if you only pay the minimum payment?

The minimum payment will not affect your credit card credit.

Minimum payment is a method of credit card repayment. Minimum repayment amount = the unpaid portion of the minimum repayment amount of the previous period's bill and the overdraft balance of this period's bill 10. If the minimum repayment amount is paid before the due repayment date (inclusive), the card issuer will charge overdraft interest at a rate of 50,000 per day.

1. The minimum repayment amount of each bank is different, usually about 10% of the bill amount; but if the minimum repayment of this month is not repaid, then the minimum repayment of "next month" = "next month "The minimum repayment that should be repaid this month and the late payment fee that should be repaid this month are the minimum repayments this month (about 10 of the entire amount).

2. After paying the minimum repayment amount, starting from the due date of repayment, interest will be charged at 5/10,000 per day on the full amount of the monthly bill, and compound interest will be calculated on a monthly basis. It is easy to form a vicious cycle.

Suggestion: Develop good card usage habits. Don’t always pay only the minimum repayment amount, overdraft regardless of financial strength, and pay more interest fees.

3. Generally speaking, every month, bank and credit card bills will be sent with SMS reminders or paper bills. The bill will specify: What is the minimum repayment amount, or how much can be applied for installment payment.

4. There is no need to contact the bank to pay the minimum repayment amount. As long as the bank deduction amount is greater than or equal to the minimum repayment amount, it will not be considered overdue, but interest will be calculated as mentioned above.

5. The minimum repayment amount can also be repaid with cash withdrawals, but the cost of cash withdrawals with credit cards is higher. In addition to the cash withdrawal handling fee, interest will be calculated at 0.5% per day starting from the second day of withdrawal.

6. If you pay the minimum repayment amount, you will not leave any bad records. Bad records are caused by overdue repayments. You only need to pay back the money in each period.

Extended information:

In order to improve the marketization mechanism of credit card business, meet the public’s increasingly abundant credit card payment needs, improve the quality of credit card services, and promote the healthy and sustainable development of the credit card market, the Chinese People The bank recently issued the "Notice of the People's Bank of China on Matters Related to Credit Card Business" (hereinafter referred to as the "Notice"), which will come into effect on January 1, 2017.

The "Notice" cancels the current unified credit card overdraft interest rate standards, implements upper and lower limit range management of overdraft interest rates, and enhances the autonomy and flexibility of card issuers in pricing credit card interest rates. At the same time, card issuers can independently determine the interest calculation method for credit card overdrafts, the interest standards for overpayments, etc., further expanding the space for innovation.

The "Notice" cancels the current regulations on the maximum interest-free repayment period, minimum repayment amount standards and additional conditions for overdraft consumption, which shall be determined independently by the card issuer based on commercial principles and cardholder needs; Cancel late payment fees, and the card issuer and cardholder will agree on liquidated damages; cancel over-limit fees, and stipulate that card issuers are not allowed to charge interest on service fees.

The "Notice" optimizes the management mechanism of credit card cash advance business, clearly defines the types of cash advance business such as cash withdrawals, cash transfers and cash recharges, and formulates relevant requirements for improving services and standardizing management.

The daily cumulative limit per card for cardholders to handle cash advance withdrawals through ATMs has been increased from RMB 2,000 to RMB 10,000. Cash transfers and cash recharges to one's bank settlement account and one's payment account are allowed. Card issuers should conduct relevant business based on the principles of risk control and commercial sustainability.

In addition, the "Notice" emphasizes the authenticity, completeness and traceability of credit card transaction information, and strengthens it from aspects such as clarifying the information disclosure responsibilities of card issuers, improving non-personal transaction processing and cardholder loss compensation. Cardholder rights protection mechanism.

Baidu Encyclopedia - Minimum Repayment Amount

The advantages and disadvantages of the six major credit card repayment methods

Over the counter repayment is suitable for the elderly and those who are close to bank branches Cardholders, because the elderly are not familiar with mobile phones, most of them are not familiar with transfers, and they have enough time, they might as well go to the bank counter to repay the money and ask their questions.

ATM machine self-service repayment is suitable for everyone. It is generally used by adults. Most adults still have great trust in the bank's self-service deposit and withdrawal system, because now their wages are paid to the card. Yes, they can also master the operating procedures proficiently. After all, self-service transfer through ATM is much more convenient than going to the counter.

Online repayment is common to everyone, especially young people. When online banking is enabled on a mobile phone, repayment becomes even more convenient and faster. There are mainly the following methods for online repayment:

All major banks have opened online banking. Online banking repayment is an earlier method among many online credit card repayments. Users who make repayments simultaneously hold the issuing card Bank debit and credit cards, transfer the amount in the debit card to the credit card for repayment. The steps are to open online banking, enter the credit card project, find the credit card repayment item, and follow the prompts to perform the repayment operation. You can also perform transfer operations in the debit card account to repay the credit card. Inter-bank repayment refers to repayment through online banking transfer to credit cards of other banks. It depends on whether the other bank's credit card account has opened the function of receiving transfers and remittances from other banks.

Disadvantages: Online banking needs to be activated. Generally, users need to go to the bank counter in person to activate online banking. To log in to online banking to transfer money, you need to use security tools such as U-shield or electronic password cards. The process is cumbersome and security tools are difficult to keep. Using online banking for inter-bank transfer and repayment will involve handling fees. Different banks have different charging standards. For details, please consult the bank to which your debit card or passbook belongs. The arrival time of inter-bank online banking repayment is not timely.

Alipay is used more and more widely. Using Alipay to repay credit cards can be divided into two types: repaying for yourself and repaying for others. To repay for yourself, log in to the Alipay website and click on the application center to repay by credit card. Repay immediately, fill in the repayment information, select the payment method, savings card quick payment, savings card online banking, savings card cartoon, account available balance, Jifenbao for payment and credit card repayment red envelopes and Yu'e Bao, submit a repayment application. The process for repaying someone else's loan is the same, but there will be fees involved.

Advantages: Alipay supports a variety of repayment channels and has both consumption and financial management functions. Repayment operations can be performed on both the computer and mobile phones, making it more convenient. You can use Jifenbao, credit card repayment red envelopes, etc. to enjoy credit card repayment discounts.

UnionPay is an online service platform provided by China UnionPay to its cardholders. Inter-bank repayment of credit cards is one of its services. Cardholders need to register first, and then set up credit cards that require repayment and debit cards for fund transfer. There is no limit to the number. After logging in, cardholders can select debit card binding management and credit card binding management in the My Bank Card List on the left side of the webpage, and enter the bank name and corresponding card number to complete the binding application.

Quick Cash repayment method is similar to UnionPay repayment. The cardholder needs to register first and fill in basic credit card information, including the credit card used for repayment, account name and debit card, account name, and identity. Certificate number, mobile phone number, email address, etc., and then follow the prompts to complete the payment in bank card online banking.

As can be seen from the above introduction, there are more and more repayment methods for credit cards. Therefore, I would like to remind all cardholders to make repayments on time. The above methods can all be used to repay easily. However, if If you choose to repay online, it is recommended that cardholders should remind you to repay within 2-3 days, because some banks do not receive the payment in time.

For more information, please pay attention to the professional credit card service platform - Credit Card Forum (〕Credit Card Forum) also provides you with more bank credit card preferential information, credit card guides, and credit card strategies, allowing you to better use your credit cards. Statement: The article comes from the Internet and is only for netizens to learn and communicate. If there is any infringement, please contact us to delete it.

Is it more cost-effective to pay in full by credit card or in installments?

The advantages are convenience, spending first and paying back later, and solving financial problems. However, when it comes time to repay, you must pay it off in time to avoid overdue payments. So, many users are comparing how to pay back the full amount. Or use the remaining part of the installment to invest or buy baby funds to earn interest

Introduction: Repay in full

The best way to repay a credit card for those with sufficient funds is of course to repay in full. Repayment in full will not incur any additional fees, and the cost of using the card is low. Other repayment methods generally involve interest, late payment fees, and handling fees.

If you want to enjoy more money. When applying for a credit card, you will usually be told that there is an interest-free period ranging from 20 days to 56 days. For this reason, you can change the billing date (bill date) according to your consumption date. It is the most practical to spend in the future) to achieve the longest interest-free period

This ends the introduction on the disadvantages of full repayment of credit cards and what is the optimal repayment amount of credit cards. Did you find the information you needed?