Credit card interest often refers to additional debts that need to be repaid by the cardholder. For example, if you apply for a Guangfa Bank credit card and find that interest has accrued during use, you don’t even know it. How do these interests come from? Let’s take a look at the interest calculation rules for Guangfa Bank’s credit cards.

How is the interest of Guangfa Credit Card calculated?

If you repay it within the interest-free period and do not withdraw cash, interest will not accrue. If the interest-free period has passed or cash is withdrawn, Interest will accrue, so Guangfa Bank credit card interest is divided into overdue repayment interest, cash withdrawal interest, etc.

1. Consumption interest:

If the bill amount is not repaid in full before the repayment due date, all transactions in the current bill will be charged as overdraft from the date the transaction is credited. Interest is calculated daily on consumption and compound interest is calculated monthly until the bill is paid off.

Example: The billing date is the 5th, the repayment due date is the 25th, and if the recurring daily interest rate is 0.05%, the annualized interest rate will be 18.25%. Spend ￥1,000 on January 1st, settle the bill on January 5th, repay ￥100 on January 25th, and repay ￥900 on January 30th. Consumption interest =￥1000*0.05%*24 days (1-24 days)+￥900*0.05%*5 days (25-29 days)=￥14.25.

2. Cash withdrawal/transfer charging standards:

1 Handling fee: Domestic charges are calculated at 1%-2.5% of the principal, with a minimum of RMB 10/transaction (the actual rate is based on the operation interface Whichever is shown); Overseas (including Hong Kong, Macao and Taiwan): 3% of the principal is charged, with a minimum of ￥15/$3/transaction (minimum of $5/transaction for US dollar single-currency cards).

2 Interest: The daily interest rate is set according to the customer's comprehensive evaluation. There is no upper or lower limit. The annualized interest rate conversion formula is: annualized interest rate = daily interest rate × 365.

3 Withdraw cash via mobile phone or withdraw the balance in the card at domestic UnionPay logo teller machines without fees or interest.

3. Interest on overpayment:

There is no deposit interest on overpayment in the credit card. You can directly swipe the card for consumption/automatically offset the consumption of your subsequent bills, and can also be transferred out for free. Withdraw from your debit/credit card or through domestic UnionPay teller machines. Overpayment withdrawal operations are not supported between 21:45 and 00:00; unrecorded repayment/transferable amount ≤ 0 cannot be withdrawn.

When using a credit card, pay attention to your repayment date, try to pay off the current bill before the repayment date, and do not withdraw cash, so as to avoid paying interest.