When you use a credit card for normal consumption, as long as you pay off the balance before the final payment date, no other fees and interest will be incurred. This period is called the interest-free period. Under normal circumstances, most The longest interest-free period for banks is 56 days. However, if the following situations occur, interest will accrue:

1 Overdue interest: If the entire repayment amount is not repaid before the due repayment date (inclusive), we will need to pay interest, which is from Interest will be charged on a daily basis from the recording date of each transaction until each outstanding balance is paid off. What should be noted here is that the accounting date is not the final repayment date. Generally, the accounting day is the next day after we consume.

2 Minimum repayment interest: Each bank now has a minimum repayment ratio. If you are not able to pay off all the debt, paying the minimum repayment is not considered overdue, and it will not affect our tax collection. However, a certain amount of interest will accrue, which is generally charged based on the full repayment and the unpaid portion, starting from the date of consumption. If the repayment amount on the repayment date is less than the minimum repayment amount, we will also pay a repayment penalty based on a certain proportion of the unpaid portion of the minimum repayment amount. Therefore, it is recommended that we repay the loan on time, and if the repayment capacity is insufficient, try to pay the minimum repayment.

3 Installment interest: Generally, banks will have fixed-term installment repayment methods such as 3, 6, 9, 12, 24, 36, etc. There will be installment interest rates, and there are many now. Banks call it installment fees, which vary from bank to bank. If the bill is not repaid in full before the repayment due date, interest will only be charged on the current portion of the installment payment. Interest will be calculated on a daily basis from the date the installment is carried forward to the date of repayment. Interest.

If the credit card is repaid in full on the repayment date, the bank will not charge any interest, and it will not affect your credit report. However, interest will be calculated on overdraft withdrawals from the day of withdrawal, interest will be calculated on the minimum repayment from the second day after the card is swiped, and interest will be calculated on overdue payments from the first day of overdue payment. Credit card overdraft interest is generally calculated as a daily interest rate of 0.5% within 15 days from the bank accounting date (including the current day). If it exceeds 15 days, it will be calculated as a daily interest rate of 10%. If it exceeds 30 days or the overdraft amount exceeds the prescribed limit, Yes, calculated based on daily interest rate of 15%. In other words, if you don’t want to pay extra interest, it is best for cardholders to repay in full on the repayment date.