There are probably two types of interest on credit cards, one is the interest on cash withdrawals, and the other is the interest on overdue payments. If you fail to repay on time and become overdue, the bank will accrue interest from the day you make the payment, usually at a daily interest rate of RMB 50,000, and compound interest will be calculated until all is paid off.

When you use credit cards to pay in daily life, there is usually an interest-free period of 20-50 days. If you repay the full amount within the interest-free period, that is, before the repayment date, you will not be charged. accruing interest.

For example: You made 3 purchases with your card on January 6, one was 3,000, one was 4,500, and one was 2,500. When the bill comes out, your bill will show a debt of 10,000 yuan. As long as you pay back If paid in full before the due date, no interest will accrue.

However, if the following four situations occur, a certain fee will be charged.

1. Cash withdrawal interest

It means withdrawing cash directly from an ATM machine or withdrawing cash to a debit card through mobile banking. Generally, two types of fees will be incurred, one is interest and the other is handling fee. The interest rate of all major banks is basically 0.05% per day, and the handling fee varies from bank to bank, generally ranging from 1 to 3%.

For example: If you withdraw 10,000 yuan in cash from an ATM machine and use it for 30 days, how much will it cost?

Interest = 5 yuan

That is to say, 10,000 yuan, used for 30 days, will incur a fee of 450 yuan. This is already a monthly interest rate of 4.5, which is very high. Try not to use it!

2. Penalty interest incurred after overdue payment

If you fail to repay on time and become overdue, the bank will calculate interest from the day you consume, generally based on 50,000 Interest is charged daily and compounded until all is paid off. For example: You spent 10,000 yuan with your card on January 1st. The billing date was January 15th and the repayment date was February 3rd. However, you did not repay the payment and did not pay it off in full until February 13th.

Then your penalty interest is 10000*0.05 10000=10215 yuan. The actual account period is 43 days, but it is only delayed for 10 days but you have to pay back 215 yuan more. But if it is 100,000 yuan, that may It’s 2150 yuan.

3. Installment interest

Credit card installments are generally for a fixed number of periods, such as 3 periods, 6 periods, 12 periods, up to 24 to 36 periods.

Many banks have changed the name of installment interest, claiming to be interest-free installment, but in fact they charge handling fees, changing the soup without changing the medicine.

At present, the installment handling fees of various banks are different, which are roughly around 0.5 to 0.8 per month, and the principal and interest are repaid in equal amounts.

For example: If the bill is 10,000 yuan and is repaid in 12 installments, the principal of each installment should be 10,000/12 months = 833.33 yuan, and the handling fee is calculated as 0.6, that is, 10,000*6=60 Yuan, the total monthly repayment is 893.33 Yuan, and the interest per year is 719.99 Yuan.