2. Credit cards will have an interest-free period, and repayment before the repayment date will not generate interest.
Second, the need for interest.
1. Credit card overdue repayment.
2. After the credit card has passed the interest-free period, the installment repayment is still charged on time, but after it is overdue, there will be interest, and the interest rate is still high.
3. The way for banks to charge overdue interest on credit cards is to calculate the total bill of the current month, which is called "full interest", rather than the unpaid amount. Full interest, also known as full penalty interest, refers to the failure to repay in full by the latest repayment date. Even if a penny is missing, the full amount of the current bill is calculated at five ten thousandths of the daily interest rate, and the compound interest is calculated on a monthly basis. It can also be called "rolling interest".
Except ICBC, Agricultural Bank of China and Shanghai Pudong Development Bank, all other banks bear full interest. ICBC is the first bank to cancel the full penalty interest of credit cards.
People's Republic of China (PRC) Civil Code
Article 675 The borrower shall repay the loan within the agreed time limit. If the term of the loan is not agreed or clearly agreed, and cannot be determined according to the provisions of Article 510 of this Law, the borrower may return it at any time; The lender may urge the borrower to return it within a reasonable period of time.
Article 676 If the borrower fails to repay the loan within the agreed time limit, it shall pay the overdue interest in accordance with the agreement or the relevant provisions of the state.
Article 677 Where the borrower repays the loan in advance, unless otherwise agreed by the parties, the interest shall be calculated according to the actual loan period.
Article 678 The borrower may apply to the lender for extension before the repayment period expires. If the lender agrees, it can be extended.