1. Will the minimum credit card repayment become more and more?

Whether the minimum repayment will become more and more depends on the repayment ability. . If you pay the minimum monthly payment and the rest is accruing interest until the next month, or even the next month, the situation will be more serious. The minimum repayment interest is 0.05% per day, and compound interest is calculated on a monthly basis. There will be no profit in the short term and no repayment in the long term.

The user selects the minimum repayment amount on the repayment date, and interest is charged on the unpaid portion on a daily basis, and then the full amount is included in the next bill. As for the next bill, it depends on the user's consumption amount and actual account balance. Only the greater the consumption amount, the greater the repayment amount, regardless of whether you choose the minimum repayment.

2. Which is more cost-effective, minimum credit card repayment or installment?

Which method is more cost-effective, you need to choose according to your own situation. If you can't pay off the debt for a long time, you can choose to pay in installments; on the contrary, the minimum repayment amount is chosen within one or two months, so the fees you need to pay are lower. The interest rate will be higher after one year on the minimum repayment, but it will definitely be lower than the installment payment in the short term.

Bill installment payment is a repayment method in which the cardholder and the bank agree in advance on the repayment period and the repayment fees (including handling fees) for each installment. There are only handling fees and no interest. When applying for credit card bill installments, the terms increase from short-term to long-term. They are fixed and will not be offset by early repayment.

3. Disadvantages of the minimum credit card repayment

Its biggest disadvantage is the high interest rate. After using the minimum repayment amount, all consumption cannot enjoy the interest-free period. The longer the period, the more interest charged by the bank. The bank will charge interest of 0.05% on the outstanding portion every day and compound interest on a monthly basis. Therefore, if it is only used occasionally for emergencies, the disadvantages will be lower.

In addition, the minimum payment may affect your credit limit, resulting in a decrease in your credit limit or even freezing of your credit card. After all, the purpose of banks issuing credit cards is to make money and to control risks on the basis of making money. If you always make the minimum payment and prove that your repayment ability does not match the actual amount, your loan will be downgraded/sealed for risk control.

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