Consequences of minimum repayment amount of credit card:

1, full penalty interest

Interest will be charged at the rate of 0.05% per day from the date when all the consumption in the previous period is recorded in the account until it is fully paid off; If the next installment is still not fully paid off, the interest will be calculated according to compound interest.

2. High interest rates

The daily interest rate is 0.05%, and the annual interest rate is as high as 18.25%, excluding the calculation of compound interest.

3. Distorted consumption concept-blind consumption

For a long time, you can't feel the high interest expense by using the minimum repayment amount of credit card. In the long run, your consumption concept will be difficult to correct.

4. Bad credit record

Because credit cards are related to personal credit, living on the minimum repayment amount of credit cards for a long time will naturally affect personal credit records and even be blacklisted by banks, making it difficult to apply for credit cards and loans.

Extended data

Interest calculation of minimum repayment amount of credit card

Select the minimum repayment amount of credit card, charge interest at the rate of 0.05% per day, and compound interest every month until the cardholder pays off all credit card debts.

The first stage: amount (actual amount of credit card swiping) × interest rate (0.05% per day )× time (days from the day of credit card swiping to the day before the minimum repayment);

The second stage: amount (remaining unpaid amount) × interest rate (0.05% per day )× time (days from the minimum repayment date to the day before repayment).

Phoenix. Com- What if you live on the minimum repayment amount of your credit card every month?