The minimum repayment amount of a credit card refers to a minimum repayment method that can be chosen when there is not enough funds to complete the full repayment on the due payment date. It solves the problem of financial constraints, but You cannot enjoy interest-free repayment.

The minimum repayment amount is generally 10% of the total amount owed, and this minimum repayment amount will be displayed on the current bill. In other words, on the billing day, there will be two amounts that need to be noted on the bank statement received by the cardholder, one is the amount payable in the current period, and the other is the minimum repayment amount. Once consumption exceeds repayment, you can choose to repay only the minimum repayment amount.

Repaying the bill in full or the minimum repayment amount will not cause overdue payment and will not affect the personal credit system. This is something cardholders can rest assured. The difference between the two is that interest will accrue if you repay the minimum payment amount.

If the cardholder repays the full amount of the bill before the repayment date, it will be a normal repayment and no interest will accrue.

If the cardholder repays the minimum repayment amount before the repayment date, or the repayment amount is greater than the minimum repayment amount but does not reach the full amount owed, the bank will charge interest, but it will not be counted as overdue. .

If the cardholder fails to repay or the repayment amount is lower than the minimum repayment amount before the repayment date, it will be considered overdue. Not only will there be interest and late payment fees, but it will also affect the credit report.

Extended information:

Disadvantages of minimum credit card repayment

1. Full penalty interest. Currently, in addition to ICBC credit cards, credit cards from other banks can be used The minimum repayment is subject to full penalty interest. The full penalty interest means that after the cardholder uses the minimum repayment, he will have to pay corresponding interest on subsequent monthly payments, and this interest is calculated based on the first minimum payment. The total amount of all purchases before repayment is calculated.

No matter how much you repay every month or how much money is left to repay, the interest repaid will remain the same. If the minimum repayment period is longer, the more interest you will bear. . It is understood that if the minimum repayment is used for a long time, the annual interest rate can reach 20-30, which is very scary when you think about it.

2. You can no longer enjoy the interest-free period. Under normal circumstances, as long as you repay your credit card on time, no interest will be charged from the consumption date to the repayment date. The longest interest-free period can be reaches 60 days, but if the minimum repayment method is used, there will always be an outstanding balance on the credit card that has not been repaid until the balance is paid off. In the future, the credit card will no longer enjoy the interest-free period every month.

Ifeng.com-If you live by the minimum repayment of your credit card every month, what will be the final consequences