It needs to be considered on a case-by-case basis. When the 12-term credit card rate is greater than the annual interest rate of the loan, the credit card installment fee is higher than the interest rate; when the 12-term credit card rate is less than the annual interest rate of the loan, the interest rate is higher than the installment fee of the credit card. That is to say, the comparison of interest rates between credit cards and borrowed money should be done when the number of installments is the same. The one with the higher interest rate is the one with the higher interest rate.

Comparison of installment rates between Ant Juebei and credit card installment rates

1. Bank credit card installment rates

Currently, there are two ways for banks to collect installment fees , one is to charge an average monthly handling fee in each installment, such as Agricultural Bank of China, China Construction Bank, Bank of Communications, Minsheng, etc.; the other is to charge a one-time installment handling fee when paying the down payment, such as China Merchants Bank, ICBC, Bank of China, etc. . Obviously, under the same monthly rate conditions, a one-time charge is not as cost-effective as a monthly charge.

However, it should be noted that whether it is a monthly handling fee or a one-time down payment, the installment service fee charged by a bank credit card is based on the entire loan amount each time the repayment interest is calculated. It is calculated based on the calculation, which means that no matter how many installments are repaid or how much is repaid, the interest for each installment is the same.

2. Ant Borrowing Installment Rate

Ant Borrowing is currently only open to some Alipay users who meet the requirements. Depending on the loan amount, the daily interest rate is around 0.03% to 0.04%. However, unlike bank credit card installments, Ant Borrowing repays monthly, and the installment interest rate is calculated monthly. Since the principal has been decreasing, so if you repay it once a month, the next month's installment interest will be reduced. The final interest ratio is The interest calculated on the entire principal is much less.

3. Summary:

Users who need installments should compare their borrowing amount and the installment rate of the credit card issuing bank to determine which one is more cost-effective before making a choice. Although sometimes Ant Borrowing is cheaper than credit card installment, after all, Ant Borrowing can only be used for consumption at supported online merchants, while credit cards can be used for offline consumption, and if the repayment record is good, it will help improve your credit record. Also more helpful.

Credit Card

When using a credit card for overdraft consumption, everyone has an interest-free period of dozens of days. During the interest-free period, you do not need to bear loan interest. If you are unable to pay off the loan on the repayment date and choose to repay in installments, you will have to pay a certain handling fee. For China Merchants Bank credit cards, the installment fee will be between 0-1.67% per installment.

When withdrawing cash with a credit card, the interest rate of the credit card will be different from the installment payment. Taking China Merchants Bank credit card as an example, the handling fee for each transaction is 1% of the loan amount, and the minimum charge is RMB 10 per transaction. In addition, you also need to pay interest on a daily basis, and collect interest based on the daily interest rate of 0.05%, and collect compound interest on a monthly basis.