It means that when the cardholder uses a credit card to make large purchases, the bank pays the merchant a one-time payment for the goods (or services) purchased by the cardholder, and then allows the cardholder to repay the bank in installments. The process of making a deposit and paying the handling fee. The bank will deduct consumption funds and handling fees from the cardholder's credit card account in installments based on the cardholder's application, and the cardholder will repay according to the monthly credit amount.

In general, the one-year credit card installment fee is lower than the annual cash withdrawal interest of 18%, and higher than the bank's one-year commercial loan interest of 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.

Extended information:

There are also many forms of installment payment terms: the home buyer pays in installments himself, usually paying the down payment first, and then waiting for the delivery notice from the real estate agent. Pay the second payment; if it is divided into three installments, the third payment will be paid within a certain period of time after moving in.

With this approach, the total house payment paid by the home buyer will usually be more than the one-time payment, but at the same time it can reduce possible losses that may occur in the off-plan house, such as the "uncompleted" house and the decline in house prices. Exceeding the down payment and changes in the home buyer’s financial situation, etc.

Loan installments usually take several years to be paid off. The key here is, in addition to the down payment, when the installments start. In other words, when the lending bank hands over the home buyer’s loan to the real estate. business.

Baidu Encyclopedia-Credit Card Installment