Credit card consumption is automatically amortized. The automatic installment should be included in the contract for applying for a credit card. If it is not needed, you can go to the bank and ask to cancel it.

Yin Yanmin, a researcher at Rong360 Big Data Research Institute, said that the development speed and market penetration of consumer installment business are very fast. While financial institutions are vigorously promoting and developing business, they should also strengthen risk education. They cannot avoid the important and ignore the important. On the bright side, ignore the risk warnings.

“We should focus on the possible expenses and provide clearer risk warnings to consumers, so that consumers can understand the product attributes before opening the business and make rational choices.”

" Place it in an inconspicuous place or even bundle it by default. Such behavior will definitely infringe on the legitimate rights and interests of consumers.

“We do not recommend that companies set default items or bundle them in terms of consumer interests.” Xue Chengfeng also reminded consumers that when handling consumer installments, first of all, do not be tempted by small profits;

Secondly, you should carefully read the terms of the contract, especially those involving fees such as liquidated damages, interest, overdue rate calculations, etc. Do not think that it is troublesome to sign in a hurry; you should fully understand the relevant charging standards of the product. After the situation, make a rational choice.

What needs to be alerted is that bank installment fees are not as low as they seem. Taking the monthly rate as 0.55 as an example, the annual rate is 6.6, which doesn’t seem high. But this is a nominal interest rate, and the real interest rate is much higher. It is understood that the installment fee algorithm of financial institutions is calculated based on the total installment amount at the beginning of the period multiplied by a certain rate coefficient, and is not calculated based on the remaining outstanding monthly amount.

If the calculation method is based on the principal reduction of each period, taking the installment amount of 12,000 yuan as an example, the actual rate for 12 periods is 12.2. It can be seen that, after taking into account the actual occupation of funds, the annualized rate of credit card installment fees is nearly twice as high as the nominal interest rate.

Extended information:

“Users who repay on time every month before the bill date do not make installments or take out loans. To put it bluntly, there is no profit value to us.” The words of a bank credit card person tell the truth about credit card profitability.

Xi Junyang, deputy director of the Modern Finance Research Center of Shanghai University of Finance and Economics, believes that regulatory authorities should standardize the relevant business processes of financial institutions to avoid misleading business and harming consumer rights.

Tang Jiansheng, deputy secretary-general of the Shanghai Municipal Consumer Protection Commission, said that he often receives complaints about consumer installments. Many times, there are problems with the business process, insufficient prompts, and important terms are deliberately placed in inconspicuous places. Even bundled by default. This kind of behavior actually digs holes for consumers and will cause losses to consumers’ rights and interests.

We do not recommend that companies set default items or bundle services related to consumer interests. Experts remind that when applying for consumer installments, you should carefully read the terms of the contract, especially when it comes to fees such as liquidated damages, interest, overdue rate calculations, etc. Do not think that these are troublesome and sign immediately. It is recommended that consumers make rational choices after understanding the relevant charging standards of the product.

People's Daily Online-Credit Card Consumption: Have you been "installed"?