Steps/Methods
If the credit card only pays the minimum repayment amount, the unpaid part will no longer enjoy the interest-free period and need to pay interest. The interest of the credit card will be charged at .5% of the consumption amount every day from the date when the consumption is recorded, and the monthly compound interest will be calculated.
the calculation formula for charging interest is (principal *.5%* days from consumption date to repayment date of the current period+unpaid amount of principal *.5%* days from repayment date of the current period to billing date of the next period). For example, the 5th is the billing date, 23rd is the repayment date, and the amount payable on March 5th is 1 yuan, and the lowest repayment date is 1 yuan, so the interest before the next repayment date is 17.85 yuan.
at the same time, the minimum repayment interest of the credit card will be paid monthly, and the interest will be calculated according to the monthly welfare until the cardholder pays off all the debts. Because the lowest repayment is chosen, the interest is actually very high. If it is not a special case, it is better to repay in full on the repayment date.
Extended information
For example, the cardholder spent 2, yuan on September 18th, which was the only expense in the bill on October 1th. On October 25th, the final repayment date of the bill, he repaid 2 yuan. Then, despite his good credit record, this consumption will still generate a lot of interest.
the interest charge is divided into two parts: first, the total bill amount of RMB 2, will be charged at the interest of .5 ‰ per day from the second day of consumption, that is, on September 19th, until the minimum repayment amount is paid on October 25th; second, the unpaid debt of RMB 1,8 will be charged at the interest of .5 ‰ per day from October 25th, until the cardholder pays it off. Through calculation, even if the cardholder fully returns the arrears on October 26, he will have to pay an extra interest of 38.9 yuan because of the difference in one day.