First of all, let’s talk about the definition: Credit card installment payment means that when the cardholder uses the credit card to make large purchases, the bank pays the merchant a one-time payment of the consumption funds for the goods (or services) purchased by the cardholder, and then The process of allowing cardholders to repay their loans to the bank in installments.

Let’s talk about the process: the bank will deduct the consumption funds in installments from the cardholder’s credit card account based on the cardholder’s application, and the cardholder will repay according to the monthly credit amount;

There is also the issue of credit card installment fees. Installment repayment requires payment of handling fees to the bank. The specific charges are subject to the standards of each bank;

First: apply for installment repayment and be sure to repay on time. If you repay in installments, If the payment is not repaid, it will become overdue, which will have an impact on your credit. You can also call the bank's customer service number for consultation.

Second: Although credit card installment repayment does not accrue interest, it does require payment of handling fees. The number of installments carried out by each bank on the statement is different. Depending on the number of installments, the handling rates are also different. Installment payment fees are 0.6%-1.5% in most banks, and more than 10% in some banks. Taking the repayment of 10,000 yuan in 6 installments as an example, the five banks of Industry, Agriculture, China, Construction, and Postal Savings Bank charge the lowest amount of handling fees.

Third: The handling fee for each installment of a credit card installment is generally the total installment amount multiplied by the handling fee rate for each installment. The total principal amount of the installment is amortized evenly on a monthly basis, and the remainder is included in the last installment. The amount of each installment and the handling fee of each installment are recorded at the same time. There are also banks that charge a one-time installment fee. Installment repayment is generally more beneficial to cardholders with larger amounts who are unable to repay in one go over a long period of time, and can prevent interest compounding from occurring.

Also: when choosing to repay in installments, be sure to ask the bank’s relevant information, such as how much consumption can be paid in installments, how the handling fees are calculated and collected; understand the conditions for credit card overdrafts and the amount you can pay in each installment. The amount of the overdraft; understand whether the chosen installment method is exempt from handling fees. If not, what is the handling fee rate and the calculation method? Consumers who choose to swipe their card first and then apply for the installment method at the bank should understand the bank's application process to prevent unsuccessful applications and disrupting the payment plan.