When repaying a credit card, would you choose to pay it off in advance? Will early repayment have any impact on us? Is it good to pay off the loan in advance? When repaying a credit card in advance, if it is repaid in full, there will be no impact on repaying a few days in advance. However, if you want to repay in installments in advance, firstly, the agreed handling fee will still be charged, and secondly, it may involve breach of contract. You need to pay liquidated damages. It is recommended that if you choose installment, you should not repay in advance. It is better to repay on time. Let me give you some popular science here.

1. Can I pay off my credit card in advance?

The answer is yes, and there are no handling fees for early repayment. Under normal circumstances, the order of credit card repayment is to pay the bills that have been issued first, and then the bills that have not been issued. The remaining money becomes "overpayment", and the overpayment will be spent first by default when swiping the card. Some banks need to charge handling fees for withdrawing overpayments. Everyone should be aware of this. That is, if we have issued and unpaid credit card bills at the same time, our repayment will be offset against the outstanding bills first, and the remaining money will be repaid. No bill issued.

Regardless of whether it is full payment or partial payment, the credit limit of the cardholder's credit card will be restored, but what will be restored is the repayment amount paid. If the current bill has not been paid off on the final repayment date, there will be Late payment fees may also affect the cardholder's credit record.

2. Do you want to repay the loan in advance?

I don’t recommend doing this. Because credit cards have an interest-free period, if you repay within the interest-free period of the credit card (that is, pay before the repayment date), you do not have to pay interest on the overdraft amount. During this period, you can completely use the money in your hand to manage your finances and obtain profits, which is much more cost-effective than repaying the loan in advance.

First, early repayment means that you keep telling the bank that you are not highly dependent on credit cards and are unwilling to overdraft, so there will be very little room for increasing your credit card limit in the future.

Secondly, applying for a credit card in advance also means giving up the interest-free period discount, which reduces the efficiency of fund use.

Credit cards generally have an interest-free period of more than one month. You can just repay on the repayment date after the bill is issued. If you repay in advance every time, it means you give up this benefit.

3. Which is more conducive to raising the limit, on-time repayment or early repayment?

Banks naturally hope that cardholders will repay as early as possible, because early repayment reduces the bank's cost of funds. However, no bank has said that early repayment will help to increase the amount, so repay on time. The biggest advantage of paying off your credit card in advance is that you don’t have to worry about overdue payments. However, you can still repay after the statement date and before the repayment date. It is better to make full use of the interest-free period.

4. Can I repay the loan in advance after applying for installment?

As for credit card installments, if you want to withdraw and repay, you need to apply and confirm whether there are still handling fees. You must know that some banks charge a one-time handling fee in advance, and some banks also charge the remaining balance if you pay in advance. Handling fee. In this case, early repayment makes little sense. Credit cards are not a scourge. If you use them well, you can occupy the bank's funds for free for a period of time. Moreover, in order to promote credit card consumption, banks will also organize activities with merchants, so everyone can enjoy it. Of course, many people want to pay off their credit cards early because overdue payments will have negative consequences. I don’t want to keep it in my mind for a small amount of money, and sometimes it’s really overdue when I’m busy, so it’s better to pay it back sooner rather than later. In fact, a credit card can be bound to a bank's savings card to automatically deduct funds. This is a last resort in case you forget to pay back the money. Of course, you also need to deposit some money into the debit card in advance.

I would like to remind everyone that before applying for bill installment, you must first understand the related matters of installment, including issues of early repayment. If you want to repay in advance, it is best to consult with the bank before proceeding.