1, which can help credit card users develop good repayment habits and prevent credit cards from being overdue;

2. Paying back the credit card in advance can also enjoy an interest-free period without paying interest. Full repayment is also the only repayment method that will not generate additional costs.

At present, in addition to full repayment, other repayment methods generally involve interest, late fees and handling fees.

3. There is an opportunity to increase the credit card limit, and the bank will increase the credit card limit of customers with higher credit value according to the credit score.

Credit cards only need to be repaid on or before the last repayment date, and the repayment amount must be at least equal to or greater than the minimum repayment amount. If the repayment amount is lower than the minimum repayment amount, it shall be deemed as overdue. If the repayment can be made in full, then the bank will not charge interest.

Extended data:

Consequences of overdue repayment of credit cards:

1, bear a high penalty interest. After a credit card defaults, the penalty fees usually involved are revolving interest fees and late fees.

The essence of revolving credit is a small, unsecured loan with daily interest. If the repayment is not made in full on the last repayment date, revolving credit interest will be generated on the next statement, and the interest needs to be calculated from the date when the consumption is recorded.

2, causing legal disputes, violent collection of credit cards has become a hot topic. Many bank credit card centers outsource credit card repayment collection to some so-called "debt collection companies". These companies are mixed, and their debt collection methods are crude, which brings great trouble to their customers.

Not only that, the defaulting customer may also face legal disputes. According to the provisions of the Criminal Law, a credit card with a malicious overdraft of more than 5,000 yuan will not be repaid after three months of collection by the bank. If the circumstances are serious, criminal responsibility may also be investigated for fraud.

3. Leave a "credit stain" in the national credit information system. In 2006, the central bank established a national unified enterprise and individual credit information basic database. As long as you get a card or borrow money from a bank, your own "credit report" will be automatically generated in the system.

The "stain" in this report can't be ignored. It will affect all kinds of applications for loans, insurance, job hunting and studying abroad. Bad records are generally kept abroad for 7 years.

References:

Baidu encyclopedia-credit card repayment