The calculation of credit card interest mainly depends on the repayment situation. If the cardholder repays the loan in full and on time, he or she can enjoy interest-free treatment and only needs to repay the consumption amount. However, overdraft withdrawals are different. Not only will a daily interest rate of 0.5% of the cash withdrawal amount be charged, but a minimum handling fee of 0.5% will be charged per transaction, which is RMB 2 per transaction. Interest accrues from the day of withdrawal until full repayment.

If you fail to repay the bill in time after the due date for repayment, the bank will charge interest at a daily interest rate of 0.5% from the date the consumption is recorded, and compound interest will be calculated on a monthly basis. The interest on the repayment will be accumulated to the next month. In addition, late payments will incur late fees, so it’s important to understand the fees when using a credit card.

For overdue repayment, for example, if the payment is overdue for 10,000 yuan for one day, the penalty interest incurred is 5 yuan. Although cash withdrawal by credit card can solve short-term capital needs, the amount of cash withdrawal cannot exceed 50% of the limit, and it will also be charged at a daily interest rate of 0.05%. The daily interest for withdrawing 10,000 yuan in cash is 5 yuan. As for credit card installment repayment, although it can be repaid in installments, it will incur handling fees, which is equivalent to interest. The longer the installment period, the more handling fees, which are also part of the bank's income.

In short, credit card interest and fees vary according to repayment status, overdraft behavior and installment selection. Cardholders need to manage it carefully when using it to ensure that they avoid additional financial burdens.