Because the credit card installment is within the limit.

The amount for installment will occupy the credit card limit, and this part of the credit card limit will be frozen. If you happen to use up the limit, even if you apply for installment, the limit will be frozen. Therefore, it will show that there is no available credit. You can restore part of the balance through repayment each period.

Credit card installment payment means that when the cardholder uses a credit card to make large purchases, the bank pays the merchant a one-time payment for the goods (or services) purchased by the cardholder, and then allows the cardholder to pay in installments The process of repaying money to the bank and paying handling fees. The bank will deduct consumption funds and handling fees from the cardholder's credit card account in installments based on the cardholder's application, and the cardholder will repay according to the monthly credit amount.

Handling fee

In general, the one-year credit card installment fee is generally lower than the 18-year cash withdrawal interest and higher than the 1-year bank commercial loan interest of 5.31. It is worth mentioning that commercial bank loan interest rates have been reduced many times in recent years, but the standards for credit card installment fees and cash withdrawal interest have rarely changed. Although the standards for credit card installment fees vary from bank to bank, the calculation method is roughly the same.

Assume that the installment amount is 1,200 yuan, divided into 12 installments, with each installment (month) repayment of 100 yuan, the handling fee is 0.6/month, and the actual monthly deduction is 100 1200 × 0.6 = 107.2 yuan. If other factors are not considered, the convertible nominal annual interest rate is 7.2. However, the cardholder does not always owe the bank 1,200 yuan. In the last month, he actually only owed the bank 100 yuan, but the bank still charged a handling fee of 1,200 yuan.

The main benefits of credit card installment payment:

Enjoy now, pay later.

No guarantor required and the procedure is simple.

Timed and fixed amount, easy payment.

Pay as you please with any monthly repayment amount

More space to choose payment methods.

Business type

From the perspective of the form of installment payment, when cardholders handle this business, the starting amount of a single transaction is limited, and the installment repayment grade and handling fee are limited. The standards are also different; they can be roughly divided into three categories:

The first category is carried out by banks in cooperation with special merchants, but the product types are limited;

The second category is that banks provide product catalogs , the cardholder purchases from the catalog, and the bank then entrusts the supplier to deliver the goods to the customer;

The third category is not limited to merchants and goods. After the cardholder purchases, he applies to the bank for repayment in installments. Just make a payment, and some banks even set the acceptance scope to be global.