2. Revolving interest is the interest generated when you can't repay in full. The interest-bearing days are from the bookkeeping date of each account to the repayment date of the account, and the daily interest rate is five ten thousandths. If you use the cash advance function of the credit card, it will also generate cyclic interest. You need to charge interest at the rate of five ten thousandths of a day from the date of withdrawal to the date of settlement, and compound interest on a monthly basis until it is paid off. Cyclic interest means that the cardholder fails to pay off all the bills on the last repayment day after consumption, so the interest needs to be calculated from the day when consumption is recorded. Let's give a simple example to illustrate the problem: for example, your bill date is 18 every month and the due date is 7 every month. Then the current bill includes all consumption records from July 19 to August 18. If you only spent 1000 last month, the bill now is 65438. Minimum repayment 100 yuan. If only 65,438+000 yuan is paid back on August 8, the revolving interest will be 65,438+06.4 yuan. It seems less, but if the amount is larger, the revolving interest will increase. If the minimum amount is repaid several times in a row, it will not only affect credit, but also cause endless increase in circulating interest. Cyclic interest is charged on a daily basis, and compound interest is charged on a monthly basis, which does not mean that it is deducted every month. The user pays off the consumption amount in full on the repayment date, and there will be no cyclic interest. If you use the cash advance function and use it every month, it will lead to the deduction of monthly circulating interest.
In addition, if there is no full repayment, choosing the minimum repayment amount will also generate cyclic interest, because users who choose the minimum repayment amount will also be unable to enjoy the interest-free service of credit cards.