At present, it has entered the credit society, and more and more cardholders choose to spend by credit card. Taking advantage of the 50-day free period is a very cost-effective thing, especially when you spend too much and you don't have enough savings. When the bill comes out, you can't pay the full amount in time by the repayment date, so you can only choose credit card installment. But I suggest that you don't blindly stage your credit cards. There are also many traps in credit card installment. Let me show you the disadvantages of credit card installment.

1. Credit limit for installment payment of credit card account.

According to market research, we found that at present, installment repayment in prime Bank accounts for the credit card quota, and the handling fee also accounts for the quota. Only the unpaid amount is used, and the unpaid part accounts for the credit line.

2. The credit card installment fee is high.

Although we often see the slogan "Apply for installment repayment, and the handling fee rate is as low as 0.7%". It is generally believed that the annual interest rate is 0.7%* 12=8.4%. But in fact, the monthly interest rate of 0.7% is equivalent to the annual interest rate as high as 16%, which is 3.7 times of the loan interest rate in the same period and far higher than the loan interest rate in the same period. It's not cost-effective, so you need to be cautious in installment repayment.

The principal has been paid, and the handling fee is still being collected.

Many people don't know that the principal will still be collected if the credit card is repaid in installments. Take 12 installment repayment 12000 yuan as an example. Although the principal decreases month by month with the repayment, the last installment only occupies the bank 1000 yuan. But in fact, banks still have to charge a handling fee according to the total amount 12000 yuan. In other words, even if you have paid back the money, there will be a handling fee for each period.

4. The prepayment fee will be charged as usual.

Although applying for credit card installment repayment is to solve the problem of short-term financial shortage, you can pay it off in full if you have money. In fact, many banks stipulate that early repayment must also pay off bills and handling fees in one lump sum. So if you really apply for installment payment, I also suggest that you don't prepay. It is better to use the money for investment and wealth management, gain income and make up for the losses caused by installment payment.

5. The illusion of "easy repayment"

Choosing credit card installment can reduce the monthly repayment pressure, but it is easy to give cardholders the illusion of "easy repayment", and credit cards are becoming more and more unrestrained in consumption life. Over time, it is easy to get into the habit of spending money lavishly.

After understanding the disadvantages of credit card installment repayment, I warmly remind all card friends to spend rationally according to their actual economic situation and not blindly choose credit card installment repayment.