How to calculate credit card interest

There is an interest-free period of 20-50 days for normal credit card consumption. If the bill is paid in full during the interest-free period, there will be no interest. Credit cards charge interest in accordance with the Central Bank's "Bank Card Business Management Measures". The interest rate is 0.05% per day, which is an annual interest rate of 18.25%.

01

What does the daily interest rate of 0.05% mean?

This represents five ten thousandths, which is 10,000, and 5 yuan of interest is charged per day. For 1,000, it is 0.5 yuan per day. So after a month like this, the 10,000 bill will be an interest of 150 yuan per pound.

If 5,000 has been repaid this month, how will the interest be calculated next month? The remaining unpaid portion will be calculated next month, which is 50000.05% of the unpaid balance = 2.5 yuan/day. That’s 75 yuan a month.

02

How to calculate interest on credit card installment?

There is no interest for credit card installments, but there will be handling fees, which are not low.

The installment handling fees of most banks are calculated based on the total installment amount, not the remaining principal, so don’t subconsciously think it’s cheap when you see a lower handling fee. The actual interest rate for installments is approximately twice the bank’s advertised interest rate.

03

How to calculate the handling fee for credit card cash withdrawal?

Generally speaking, most bank credit card cash withdrawal fees range from 1% to 3% of the cash withdrawal amount. The handling fee for a credit card cash withdrawal of 10,000 yuan is between 100 yuan and 300 yuan. . Of course, there are also some credit card cash withdrawals that charge per transaction.

In addition, there is no interest-free period for credit card cash withdrawals, so not only does a credit card cash withdrawal charge a handling fee, but the bank will also charge you interest based on a certain interest rate on the amount of cash withdrawn. Most banks will charge you interest at a daily interest rate of 0.05%. The interest rate for withdrawing 10,000 yuan a day is 5 yuan, and compound interest is calculated on a monthly basis.

04

Are credit card interest rates and loan ratios high or low?

Credit cards sometimes give you a daily interest rate when charging. Many friends who don’t know the details often don’t know whether it is really acceptable when looking at such a low interest rate. In fact, the daily interest rate only needs to be multiplied by 365 can calculate your annual interest rate. The general situation is as follows.

When the credit card chooses the minimum repayment or is overdue, interest will be charged at a daily interest rate of 0.5%. The daily interest rate converted to an annual interest rate is 0.05%365=18.25%, and the annual interest rate of bank loans is about 5%, so the interest rate of the credit card is actually very high. If you do not enjoy the interest-free service of the credit card, you need to pay High interest charges.

However, compared with online loan products, the interest rates of most online loan products are between 18% and 36%, so even if the credit card charges interest, it is within a reasonable range. Once interest is charged on a credit card, the cost of using it will be very high. Please do not overdraw your money to avoid excessive debt.

How is credit card interest calculated?

Credit cards generally have a 30-day interest-free period. As long as consumers pay off their balance within the interest-free period, no interest will be charged. If a consumer is overdue, interest is generally calculated at a daily interest rate of 0.05%. If the consumer is overdue for more than 30 days, some banks will calculate interest at a daily interest rate of 0.1%.

If a consumer uses a credit card to spend 10,000 yuan overdue, the interest that needs to be paid every day is: 100000.05% = 5 yuan, which is 150 yuan per month (calculated as 30 days). In general, The interest that needs to be paid is very high, so it is recommended not to be overdue easily.

Take China Merchants Bank Credit Card as an example:

1. When the credit card bill is not repaid in full and on time, recurring interest will accrue: interest is calculated based on each purchase in the bill. Interest is calculated at 0.05% per day starting from the consumption recording date (generally the second day of the consumption date) until the transaction is paid off.

The corresponding annual interest rate upper limit is 18.25%, and the lower limit is 12.775%. (Due to the different number of days in the month, different repayment situations and other factors, the actual annualized interest rate may be different from the above annualized interest rate.

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2. Cash advance does not enjoy interest-free repayment. From the day the cash advance is processed to the date of repayment, interest will be charged at a daily interest rate of 0.05%, and compound interest will be charged on a monthly basis. The corresponding annual interest rate upper limit is 18.25% and the lower limit is 12.775%.

(Due to the different number of days in the month, different repayment situations and other factors, the actual annualized interest rate may be different from the above-mentioned annualized interest rate.)

Notes on using credit cards:< /p>

1. Do not easily disclose personal information to others, including your ID number, bank++ code and other information, and do not give your bank card or credit card to others. If you have any doubts and need to report a crime, please go to a bank or other financial department for consultation in person or report the crime to the local public security agency. Do not call the phone number provided by the suspect to report the crime.

2. Pay attention to safe use of online banking. Install necessary anti-virus, anti-Trojan software and online banking security controls, make sure you are logging into a real bank website, do not easily accept unfamiliar files, and do not easily use other people's computers to log into online banking.

3. Be vigilant when using self-service banking. At present, the doors of self-service banks have been gradually transformed into button-opening ones. When withdrawing money from self-service banks, if you find suspicious devices or prompt messages such as "Press password to confirm" at the entrance of self-service banks, do not swipe your card or enter password, and promptly Report to banks and public security agencies.

4. Be careful to separate the card and ID card. Many people keep their ID cards and bank cards together in life. Once lost or stolen, the cardholder's funds are highly likely to be lost.

5. When swiping a credit card for consumption, you must confirm whether it is a UnionPay POS machine. After swiping the card, you must sign the shopping settlement statement. At the same time, you must also pay attention to whether there are duplicate problems and prevent the returned bank card from being used. Transfer package. In addition, the signature style should be as consistent as possible with the signature on the card.

How to calculate interest on Bank of China credit card?

The overdraft interest on Bank of China credit card is calculated based on the actual overdraft cash withdrawal amount and the actual number of days in arrears from the transaction recording date. The overdraft interest rate is The daily interest rate is 5/10,000, and compound interest is calculated on a monthly basis.

The above content is for your reference, please refer to actual business regulations.

If you have any questions, please feel free to consult Bank of China’s online customer service.

You are sincerely invited to download and use Bank of China Mobile Banking APP or Bank of China Cross-border GOAPP to handle related businesses.

What is the interest rate of credit card?

Generally, the daily interest rate of credit card interest is 0.5%, which means that the monthly interest of 10,000 yuan is about 150 yuan.

1. Credit cards are generally repaid on time and there is no interest for full repayment. In addition, overdraft cash withdrawals also charge a certain amount of interest and handling fees. The interest is calculated on a daily basis, which is also very high. It starts from the day when the cash is withdrawn. Interest will be calculated from now on, and the handling fee will be charged at 0.5% (minimum 2 yuan/transaction). You can control your credit card consumption and repay it on time every month. The credit card will always be interest-free. You only need to refund the bank amount you spent. If you overdue the payment without interest or fail to repay in full, the bank will charge interest.

2. Credit card interest is calculated from the date of purchase. Interest is charged at 5% per day and is compounded monthly. That is to say, if the interest is not paid this month, interest will also accumulate next month. In addition to interest, failure to repay on time using a credit card will also incur some other fees, such as late payment fees, retention fees, etc. Cardholders should pay attention to the cost standards of credit cards when using them. Credit cards are generally repaid on time, and full repayment is interest-free. You can control your credit card consumption and repay it on time every month. The credit card can always be interest-free. Only the amount you consumed will be refunded to the bank without interest.

If you have ++++ needs, it is recommended that you use Youqianhua. Youqianhua is a credit service brand under Du Xiaoman Financial (original name: Baidu Youqianhua, changed its name to "Youqianhua" in June 2018 Money spent"), big brands are reliable, low interest rates are trustworthy. Have money to spend - Manyidai, the maximum loan amount is 200,000, and the daily interest rate starts as low as 0.02%.

Is the interest rate of credit card monthly or daily?

It is daily interest.

According to the notice on the issuance of the "Credit Card Business Management Measures":

Article 19 Credit card overdraft interest shall be calculated as daily interest within 15 days from the date of signing or bank accounting date. If the overdraft exceeds the prescribed limit for 30 days or the overdraft amount exceeds the prescribed limit, the daily interest rate will be 15%.

Overdraft interest is not calculated in stages, but is calculated based on the highest interest rate bracket for the final term or the maximum overdraft amount.

Extended information:

According to the notice on the issuance of the "Credit Card Business Management Measures":

Article 24 Each commercial bank shall submit to the special contract according to the following standards The unit charges credit card transaction fees:

(1) RMB credit cards, which shall not be less than 2% of the transaction amount;

(2) Credit cards issued by overseas institutions and used within China, No less than 4% of the transaction amount.

When a domestic bank signs a credit card agency acquisition agreement with an overseas institution, the profit distribution ratio shall be based on the domestic bank and the overseas institution accounting for 37.5% and 62.5% of the handling fees paid by the special unit respectively.

Article 16 Corporate cardholders are not allowed to use their credit cards to withdraw cash from bank outlets and ATMs in other places and within the city where they receive the card.

Article 17 allows cardholders to make overdrafts for consumption purposes within the limit and period specified in these Measures. The overdraft limit is 10,000 yuan for gold cards and 5,000 yuan for ordinary cards.

Consequences of overdue payment:

1. Liquidated damages are incurred, usually 5% of the unpaid portion of the minimum repayment amount.

2. The interest is high, and the interest is compounded. The interest rate is very scary when the debt is large.

3. Overdue credit records will be stained, resulting in the inability to handle financial needs such as house purchases and loans within the next two years.

4. If the payment is overdue for more than 3 months, and the amount exceeds RMB 10,000, and the bank has failed to pay multiple reminders, you will not only have to bear the repayment, but may also bear criminal liability.

In April 2016, the People's Bank of China issued the "Notice of the People's Bank of China on Matters Concerning the Credit Card Business", which came into effect on January 1, 2017.

The "Notice" requires the implementation of upper and lower limit management on credit card overdraft interest rates. The upper limit of overdraft interest rates is 5/10,000 daily interest rates, and the lower limit of overdraft interest rates is 0.7 times the daily interest rate of 5/10,000ths.

Mainly based on the following considerations:

First, the implementation of step-by-step and gradual reforms will help card issuers further accumulate pricing data and experience during the transition period, and guide them to improve credit card interest rates. pricing mechanism.

Second, the credit card risk control and pricing capabilities of each card issuer are uneven. The upper and lower interest rate guidance will help prevent individual card issuers from blindly cutting prices and engaging in price wars, resulting in unfair competition and high-risk customers. Excessive borrowing will increase credit risks and cause partial chaos in the market.

Third, while the information disclosure mechanism needs to be strengthened, setting an upper limit on overdraft interest rates will help prevent individual card issuers from unreasonably charging excessive interest and protect the legitimate rights and interests of cardholders.

Baidu Encyclopedia - Notice on the Issuance of the "Credit Card Business Management Measures"

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