Credit cards can be used to pay in installments.

Generally, the one-year credit card installment fee is lower than the one-year cash withdrawal interest of RMB 18, but higher than the bank's one-year commercial loan interest of RMB 5.31. It is worth mentioning that commercial bank loan interest rates have been reduced several times since last year, but the standards for credit card installment fees and cash withdrawal interest have rarely changed. Although the standards for credit card installment payment fees vary from bank to bank, the calculation method is roughly the same.

Assume that the installment amount is 1,200 yuan, divided into 12 installments, with each installment (month) repayment of 100 yuan, the handling fee is 0.6/month, and the actual monthly deduction is 100 1200 × 0.6 = 107.2 yuan. If other factors are not considered, the convertible nominal annual interest rate is 7.2. However, the cardholder does not always owe the bank 1,200 yuan. In the last month, he actually only owed the bank 100 yuan, but the bank still charged a handling fee of 1,200 yuan.

According to calculations, the true annual interest rate paid by cardholders is approximately 15.48. According to the correct calculation formula, it should be 1200*6*(1 6)^12/((1 b)^12-1)=103.94 yuan, which means an extra handling fee of 3.2 per period.

Extended information

Minimum repayment amount for credit card installments:

① Refers to the cardholder repaying all the amount payable before the due payment date (inclusive) If you have difficulty, you can repay according to the minimum repayment amount stipulated by the card issuing bank;

② However, you cannot enjoy the interest-free repayment period;

③ The minimum repayment amount is consumption 10 of the amount plus other various payables;

④ The minimum repayment amount is listed on the current bill;

⑤ The minimum repayment amount = the unpaid consumption within the credit limit 1000 for the cash advance transaction amount, 100 for the unpaid portion of the previous minimum repayment amount, 100 for the consumption amount exceeding the credit limit, and 100 for fees and interest.

Baidu Encyclopedia: Credit card installment payment