Which one is more cost-effective, credit card installment or Huabei installment?
Nowadays, people like to spend in advance to satisfy their consumption desires. Credit cards and Huabei are the most popular ways. For me, credit card installment is relatively cost-effective.
1. Credit card interest is relatively low
Everyone who frequently uses credit cards knows that if you use your credit card more times each year, you will not incur extra fees, even if there is interest, it will be very small. few. Compared with Huabeifenlai, the interest rate of credit card is lower, and it allows you to pay more quickly, which can meet everyone's daily consumption.
2. Can be used anywhere
Credit cards are like bank cards and can be used in many places, but Huabei payment is often not allowed in stores. Only merchants can use it. Credit cards can be used at most POS machines, and POS is now installed in most places, even in unfamiliar cities. Since you can spend money anywhere, the installment payment is the same, and you can often choose according to your own preferences.
3. Many times there are activities
Credit cards often have activities. If you use them at that stage, you will receive discounts or draws, which means that you will use relatively less money. Pay for the same item. Credit cards can be used in many places, and there will be a discount at the end. If you are lucky, you will pay less. Everyone likes to take advantage, so it is more cost-effective.
In fact, in my opinion, I am a relatively conservative person. I don’t like the feeling of being in debt. Once I repay the debt, it will affect my credit report. Many times we should be responsible for our own actions. Even if we consume in excess, we need to pay for it ourselves, not as a gift to ourselves. We should look at it strictly based on our actual situation, instead of just focusing on consumption without knowing how to repay it. This will not be worth the gain, and it is also irresponsible behavior.
Which one has higher interest rate, credit card or Huabei?
In fact, they are almost the same.
Under the same amount and number of installments, the main deciding factor is the installment fee. Generally speaking, the installment rate of Huabei is fixed, but the installment rate of a credit card may be related to the issuing bank and credit card level. Therefore, if you want an accurate comparison, you can compare your own credit card installment rate with the installment rate of Huabei. Enter the formula and do the math.
Then the Huabei installment interest is divided into 3 installments. The total interest = 10002.5 = 25 yuan; the interest payable in each installment = 25/3 = 8.3 yuan.
The installment interest of CCB credit card is divided into 3 installments. Total interest = 7.53 = 22.5 yuan; 10000.75 = 7.5 yuan.
The Huabei installment interest rate is higher than the CCB credit card installment interest rate. But if your credit card installment rate is 1.25, then the Huabei installment interest is still 3 yuan per installment, and the credit card installment interest is 12.5 yuan per installment. The Huabei installment interest is more cost-effective.
Product Origin:
The earliest credit card appeared at the end of the 19th century. In the 1880s, the British clothing industry developed so-called credit cards, and the tourism and business sectors followed suit. However, the cards at that time could only be used for short-term commercial credit, and the money still had to be paid as and when used. Long-term arrears were not allowed, and there was no credit limit.
A credit card is generally a special carrier plastic card with a length of 85.60 mm, a width of 53.98 mm, and a thickness of 1 mm. The name of the card issuer, validity period, number, cardholder name, etc. are printed on the front, and there is a chip on the back. Magnetic strip, signature strip. Cardholders can use their credit cards to shop and spend money with special entities and deposit and withdraw cash from banks.
It is said that one day in the 1950s, American businessman Frank McNamara was entertaining guests for a meal in a New York hotel. After the meal, he found that he had forgotten his wallet and had to call his wife to bring cash. McNamara came up with the idea of ??starting a credit card company because he felt embarrassed about paying the bill at a restaurant.
In the spring of 1950, McNamara and his friend Schneider invested US$10,000 to establish the "Diners Club" in New York, the predecessor of Diners Club.
Which is better to choose Huabei or credit card for installment payment?
Huabei and credit cards each have their own advantages. As long as you have enough repayment ability, there is no problem in using them together. Although Huabei's credit limit and interest-free period are not as good as those of credit cards, its threshold is very low and can be used by users with poor qualifications or novice users. The application for Huabei is faster than that of a credit card. As long as you are eligible to activate Huabei, you can get a credit line and use it directly after activation. However, a credit card application takes about 15-20 working days to get the result. For users who are in urgent need of consumption payment, come to Huabei. It is said that Huabei will be very good at this time.
Which installment is more cost-effective compared with Ant Huabei or credit card?
In terms of installment and overdue payment:
1 installment
There are two types of installment payment for online shopping, one is to buy a single product The installment payment is called shopping installment. The other is to repay in installments after the purchase is completed and the bill comes out. This is called bill installment.
In terms of shopping installments, if Huabei repays in three installments, the handling fee is 0. If Huabei repays in 6 installments, the handling fee is 4.5. The service of 12 installments is currently only open to college students, and the handling fee is 8. . The handling fee for a credit card for 3 periods is 2.5-3.9, the handling fee for 6 periods is 3-4.9, and the handling fee for 12 periods is 5-7.
It can be seen that the smaller the number of installments, the more cost-effective it is. Therefore, if you can repay the loan within 3 installments for installment shopping, choose Huabei. You can still save a lot of money with zero handling fee.
In terms of bill installments, credit card handling fees are slightly lower than Huabei. Taking 3 bill installments as an example, Huabei's handling fee is 2.5, 6 installments is 4.5, and 12 installments is 8.8. The credit card processing fee is 2-2.5 for 3 installments, 4-4.5 for 6 installments, and 7.2-9 for 12 installments.
However, there is generally no early repayment fee reduction policy for credit card bill installments. Huabei is much more flexible. Early repayment will reduce the handling fee for the remaining periods.
It is recommended that if users are temporarily short of funds and choose bill installments, and plan to repay in one lump sum when they have enough money, Huabei bill installments is undoubtedly the best choice.
2 Overdue
If the current amount due is not paid off before the repayment date, that is, overdue repayment occurs, whether it is Huabei or a credit card, a daily fee of 10,000 yuan will be charged Five-fifths of the interest, but according to data, currently, except for ICBC credit cards, the interest charged by other bank credit cards is full penalty interest. That is to say, if you do not repay in full, even if only 1 cent is not paid off, then you Every consumption on the entire billing day will not enjoy the interest-free period, and interest will be charged on each consumption starting from the day of consumption; while Huabei interest is part of the penalty interest, and the interest is charged on a daily basis at 0.05 of the unpaid amount in the current period. The repayment portion does not accrue interest.
For example, assuming that your credit card statement is on the 5th of each month and the repayment date is on the 25th of each month, then you spent 2,000 yuan on May 6. If it is not until June 5 You have no other consumption, then your bill on June 5th shows that the amount you need to repay is 2,000 yuan. If you only repaid 1,999 yuan on the last payment day on June 25th, you will have paid 1 yuan less. The next day, June 26, you pay back the 1 yuan, and you will be charged 50 yuan in interest. Interest = 1999 × 50 (time from May 6 to June 25) × 0.051 × 51 (time from May 6 to June 26) × 0.05.
How will it be charged if it is Huabei? Suppose you consume 2,000 yuan on May 2. If you have no other consumption until June 1, then your bill will be on June 1 It shows that the amount you need to repay is 2,000 yuan. If you only repaid 1,999 yuan on the last payment day of June 10, which is 1 yuan less, you will not pay the 1 yuan until the next day, June 11. If you pay it back, you will be charged an interest of 0.0005 yuan.
Interest = 1 × 1 (time from June 10 to June 11) × 0.05.
It can be seen that Huabei is much more cost-effective than credit cards in collecting overdue interest. Banks that cling to the old calendar of full penalty interest will become less and less competitive with virtual credit cards, and it is time to change to a more reasonable method of calculating and collecting interest
1 Bank-issued Credit Card Bill Installment
Everyone who has a credit card will receive an invitation from the bank to pay their bills in installments. Why? This is their money-making business, claiming to be interest-free and only charging fees. Generally speaking, the handling fees of the four major industrial and agricultural banks, China Construction Bank, are lower and often have discounts. The fee rate for each period of 12 installments usually ranges from 0.46 to 0.50. The actual annualized interest rate is 10-11, while the fee for each period of joint-stock commercial banks is The period rate is higher, mostly around 15, and 18 is not uncommon.
Then why do we need installments? Because everything has two sides, existence is reasonable, and bill installments certainly have benefits:
① Reduce the pressure of repayment in the current period;
② Receive points or redeem gifts Opportunities;
③ Make some contribution to the bank, which will help increase the permanent limit of the credit card.
The other thing is to relieve the pressure of being judged as taoxian.
But the cost is much higher than the bank loan interest for the same period, is it not cost-effective? certainly. Therefore, it is necessary to decide whether to instal based on the situation. When you are in urgent need of money, even an annual payment of 18 is very modest! To put it bluntly, when doing business with a bank, the benefits need to be exchanged for costs.
2 Ant Huabei Bill Installment
It cannot be referred to as "Huabei Installment" because Huabei Installment refers to on-site installment when buying things, that is, installment shopping.
Huabei bill installment is similar to credit card bill installment (Huabei is equivalent to the virtual credit card issued by Alipay). The operation time of Huabei bill installment is between the 1st and 9th of each month. I asked. The customer service MM did not get a reply. She only said to look at her mobile phone screen to see the page display. So, please refer to Huabei installment plan.
Huabei Tmall installment handling fee:
The total rate for 3 periods is 2.3, which is equivalent to 0.767 per period, 6 periods is 4.5, which is equivalent to 0.75 per period, and 12 periods is 7.5, which is equivalent to 0.767 per period. The period is 0.625, which is fortunately not too high. Substitute into the formula to calculate:
The actual annualized interest rate = total handling rate Σi24/(number of installments n1)/(1-total handling rate Σi), taking 12 periods as an example, the actual annualized rate = 7.524 /13/(1-7.5)=14.97, which is comparable to the credit card installment rates of most banks.
Is the Huabei installment interest higher or the credit card interest higher? Calculate which interest rate is the most cost-effective at a glance!
Huabei and credit cards are always compared because they both have long interest-free periods. But once the installment payment is made, installment fees will start to be charged whether it is Huabei or a credit card. Is the Huabei installment interest rate higher or the credit card interest rate? I gave you two examples to analyze which one is more cost-effective, Huabei installment interest or credit card interest.
Huabei installment interest calculation method
Total installment interest = total installment principal × total installment rate
Interest payable in each installment = total installment principal ×Total installment rate ÷Number of installments
Calculation method of credit card interest
Handling fee per installment = total installment principal × handling rate per installment
Total installment handling fee = Installment handling rate per installment Some banks charge a handling fee for each installment)
Example of comparison between Huabei installment interest and credit card interest
Example 1: 1,000 yuan is repaid in 3 installments, and Huabei is repaid in 3 installments. The rate is the credit card installment rate, taking the CCB credit card installment rate as an example.
Huabei installment interest: total interest in 3 installments = 1,000 yuan; interest payable in each installment = 25/3= yuan
CCB credit card installment interest: total interest in 3 installments = yuan; 1,000 yuan
Conclusion: Looking at the same installment amount and number of installments, the Huabei installment interest is higher than the CCB credit card installment interest.
Example 2: 1,000 yuan is repaid in 3 installments, and Huabei’s 3-instalment installment rate is the credit card installment rate. Take the three-instalment rate of the Agricultural Bank of China credit card as an example.
Huabei installment interest: Total interest in 3 installments=1,000 yuan; interest payable in each installment=25/3=yuan
Agricultural Bank of China credit card installment interest: Total interest in 3 installments= Yuan; 1,000 Yuan
Conclusion: Looking at the same installment amount and number of installments, the Huabei installment interest is lower than the Agricultural Bank of China credit card installment interest.
Because the installment rate of Huabei is fixed, but the installment rates of credit cards of different banks are different. The types of credit cards of the same bank are basically different, and the installment rates are also different. Therefore, Huabei cannot be judged in a general way. Which one is higher, installment interest or credit card interest? If you must give an accurate answer, I suggest you use the credit card installment rate you use to apply the formula to calculate the exact value, so that the conclusion you draw is correct.
Will Huabei installment plan affect your credit report?
At present, most customers of Alipay Huabei are not eligible for credit report. Only some customers ordered service upgrades and were contacted by the central bank for credit reporting. Those who don’t have the points will basically not be included in the credit report. So you have to first make sure your Huabei has a credit report.
Recall whether you have ordered a service upgrade. If Huabei does not show up on the credit report, then Huabei installments will naturally not show up on the credit report. But if your Huabei has a credit report, and the lender is a financial institution such as Chongqing Ant Financial Co., Ltd., then this is an online loan, which will affect your application for a mortgage at this time. However, if the lender is a bank, it will not affect the mortgage loan. Therefore, whether Huabei affects housing loans has little to do with Huabei installments. Huabei installment is the same as credit card installment and will not be reflected in your credit report. What is reflected in the credit report is still your Huabei credit limit and the remaining outstanding repayment limit.
Users can generally obtain personal credit big data reports on Eagle Heart Quick Check to clearly understand their credit status, check loan records, whether they are overdue, whether they have been blacklisted, etc.
Extended information:
How to check whether your Huabei has been upgraded?
So at present, most users’ Huabei is not upgrading. For credit reporting, if you are not sure whether you have ordered the service upgrade, you can click on your own Huabei, then click on Mine to view the "Related Contracts and Product Descriptions". If it displays only the "Huabei User Service Contract" , "Sesame Service Agreement" and product description, there is no credit report. If it contains the "Authorization Letter for Inquiry and Submission of Personal Credit Information" and the "Huabei Signature and Certificate Deposit Agreement", you should pay attention at this time. Your Huabei has been listed on the credit report. If Huabei does not have a credit report, it will have no impact on the mortgage loan. If Huabei has a credit report, then it depends on the lender. If the lender is a bank, it will not affect the mortgage loan. If the lender is a financial institution, it will affect your mortgage application, and you need to settle it in advance before you can apply for a mortgage. If it is not settled, the mortgage is likely to be rejected.
The second is Huabei installment, which is the same as credit card installment. Credit card installment can reduce credit card debt, and Huabei installment can also reduce Huabei debt. However, when the mortgage bank reviews it, it will only consider letting you settle the online loan, and will not care about its liabilities. Because for mortgage banks, you apply for a mortgage after using an online loan, or you may apply for a mortgage after paying the down payment using an online loan. So for the mortgage bank, you are a risky customer, because your down payment is a loan, so your repayment ability will definitely not be good, and the risk of overdue will be greater in the future. Of course, if the lender is a bank, the mortgage bank will generally not interfere as long as the amount is not large. But if the loan amount is large, whether it is an online loan or a bank loan. Mortgage banks will require you to settle your mortgage in advance. Otherwise, you will be easily rejected when applying for a mortgage.
That’s it for the introduction of credit card installment and Huabei installment.