Credit card penalty refers to the penalty paid by the cardholder to the bank after the repayment date of the credit card bill expires, or if the cardholder fails to repay on time or in accordance with the repayment method and amount agreed in the credit card contract. Liquidated damages are usually calculated according to a certain proportion of the outstanding loan amount, and the specific proportion and liquidated damages amount vary with banks and different credit card contracts.

What is the impact of credit card penalty interest on cardholders?

In addition to paying a large amount of fees, the penalty interest of credit card will mainly affect the cardholder's credit record and credit rating, which will affect the cardholder's future loan and credit card application. In addition, frequent breach of contract will send a bad signal to the bank, which may lead the bank to increase the cardholder's credit card limit or even close the cardholder's credit card account.

How to avoid paying credit card penalty?

Cardholders can avoid paying credit card liquidated damages by the following methods: first, ensure repayment before the repayment date of credit card bills, and keep good bill records; Second, try to control the credit card balance within an affordable range and don't overdraw; The third is to plan the use of credit cards reasonably according to personal circumstances, and don't rely too much on credit card consumption. Finally, the cardholder needs to read the credit card contract carefully, understand its terms and regulations, and avoid default due to his own reasons.