Everyone should know that credit cards can be overdrawn interest-free, and generally you can use as much as you want. Some friends even have to pay interest every month, which is really puzzling. Today, I will analyze why credit cards pay interest every month.

Credit cards also charge interest for monthly repayment, which is related to the cardholder's way of using the card and repayment. There are three common situations, and the calculation method of interest is different.

First, the prepayment is not in full.

There are often card friends who fail to repay all debts on time, and some only pay the minimum amount or exceed the minimum amount. As long as the outstanding debt exceeds 10 yuan (many banks have tolerance service within 10 yuan), full interest will be accrued from the same day, with a daily interest rate of five ten thousandths, which will be included in the next bill.

Second, withdraw cash from the previous credit card.

The interest generated by credit card withdrawal is calculated in two parts, one part is from the date of withdrawal to the date of repayment, and the other part is from the date of repayment to the date of next repayment, which is calculated on the next bill, that is, the interest is calculated on a daily basis, and the daily interest rate is five ten thousandths.

Third, handle credit card installment.

There are two kinds of credit card installment: consumer installment and bill installment. Either way, a part of the principal and handling fee will be repaid every month after treatment, which can be understood as charging interest on a monthly basis. The monthly interest rate is determined by the number of periods, ranging from 1% to 0.75% per period, depending on the bank.