If you pay the minimum repayment amount on a credit card, you cannot enjoy the interest-free period, and interest will be charged at 0.5% per day.

1. Minimum repayment amount definition: The minimum repayment amount means that if the cardholder has difficulty repaying all the amount payable before the due repayment date (inclusive), the cardholder can pay the minimum repayment amount stipulated by the card issuer. The minimum repayment amount is 10% of the consumption amount plus other various payables. The minimum repayment amount is listed on the current bill.

2. If the credit card repayment amount is greater than or equal to the minimum repayment amount but less than the full repayment amount, the minimum repayment amount will be paid by default.

3. Minimum credit card repayment is required, and interest is calculated at 0.05 and charged starting from the day of consumption.

4. All consumption in the current period will accrue interest from the accounting date (usually the second day after consumption), with a daily interest rate of 0.05% until all is paid off.

5. The calculation formula is: consumption amount within the credit limit × 10, credit card cash withdrawal amount × 10, unpaid portion of the minimum prepayment amount × 100, transaction amount exceeding the credit limit × 100, all fees and interest × 100.

Extended information:

New Central Bank Regulations

In April 2016, the People's Bank of China issued the "Notice of the People's Bank of China on Matters Concerning the Credit Card Business". In 2017 It will come into effect on January 1, 2019.

The "Notice" requires the implementation of upper and lower limit management on credit card overdraft interest rates. The upper limit of overdraft interest rates is 5/10,000 daily interest rates, and the lower limit of overdraft interest rates is 0.7 times the daily interest rate of 5/10,000ths.

Mainly based on the following considerations: First, the implementation of step-by-step and gradual reforms will help card issuers further accumulate pricing data and experience during the transition period, and guide them to improve the credit card interest rate pricing mechanism.

Second, the credit card risk control and pricing capabilities of each card issuer are uneven. The upper and lower interest rate guidance will help prevent individual card issuers from blindly cutting prices and engaging in price wars, resulting in unfair competition and high-risk customers. Excessive borrowing will increase credit risks and cause partial chaos in the market.

Third, while the information disclosure mechanism needs to be strengthened, setting an upper limit on overdraft interest rates will help prevent individual card issuers from unreasonably charging excessive interest and protect the legitimate rights and interests of cardholders.

Reference: Baidu Encyclopedia-Credit Card