It will affect.

Minimum repayment consequences of credit card:

1. Full penalty interest

Starting from the date when all consumption in the previous period was recorded, interest will be charged at an interest rate of 0.05 per day until the full amount. If you still cannot repay in full in the next period, the interest will be calculated based on compound interest.

2. High interest

The daily interest is 0.05, and the annual interest is as high as 18.25, not including compound interest calculation.

3. Distorted consumption concept - blind consumption

If you use the minimum repayment amount of your credit card for a long time, you will not feel the high interest expenses. If things go on like this, over and over again, you will consume It is difficult to correct the view.

4. Bad credit record

Since credit cards are related to personal credit, living on the minimum credit card repayment for a long time will naturally affect your personal credit record and even be blacklisted by the bank. This makes it difficult to apply for credit cards and loans.

Extended information

Calculation of interest on the minimum repayment amount of a credit card

Select the minimum repayment method of a credit card to repay, and interest will be calculated at 0.05 per day, monthly Compound interest accrues until the cardholder pays off the entire credit card balance.

Phase 1: Amount (actual amount swiped) × interest rate (0.05 per day) × time (number of days before the minimum payment is due on the day the card is swiped);

Phase 2: Amount (The remaining unpaid amount) × interest rate (0.05 per day) × time (the number of days from the day when the minimum payment is paid to the day before the payment is made).

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