In order to meet the needs of a small number of cardholders, major domestic card-issuing banks have also introduced the policy that credit cards can be divided into 36 periods. Although few people will apply for a 36-period credit card installment, this 36-period credit card installment still exists just in case. So, is it cost-effective to divide the credit card into 36 periods?

Is it cost-effective to divide the credit card into 36 installments?

At present, the credit card installment rate of most card issuers is about 0.45%~0.75%, which seems to be very low. The actual annual interest rate is as high as 12%, and the three-year handling fee is at least 36%. Because the monthly repayment amount is fixed and the handling fee will not decrease with the repayment of the principal, it is not cost-effective to divide the credit card into 36 installments. And if you want to repay in advance, the remaining unpaid fees may have to be paid in one lump sum, and prepayment is more troublesome.

Generally speaking, it is not cost-effective to divide a credit card into 36 periods. A 36-term credit card can be regarded as a relatively long loan, which is tolerable for cardholders who need to apply for such a long loan.