1. What will happen if you only pay the minimum payment on your credit card every month?

In fact, only paying the minimum payment on your credit card every month will not harm your credit card balance. There is no impact on the cardholder, because the minimum payment amount of each credit card bill is also regarded as the cardholder's current payment and has no impact on the cardholder's credit record.

However, it should be noted that choosing the minimum repayment on a credit card will result in higher interest. Especially, the longer the current bill is delayed, the higher the interest will be. If the cardholder keeps using the minimum repayment amount, it will lead to more and more remaining principal and interest that need to be repaid, resulting in great repayment pressure. Once the cardholder is unable to pay even the minimum payment, it will cause the cardholder to overdue subsequent credit card repayments, resulting in personal bad credit record, overdue credit card interest and late payment fees.

In addition, it should be noted that although the minimum repayment of a credit card has no impact on the cardholder's credit record, if the minimum repayment is always used, the total amount of the credit card will be occupied, and the outstanding amount and interest will be occupied. Total credit card amount. Therefore, if you keep using the minimum repayment amount, you will owe more and more principal and interest, which will occupy more and more of the total credit card balance, resulting in less and less remaining available credit, which will affect subsequent credit card consumption or cash withdrawals.

2. How to calculate the minimum repayment interest of a credit card

The minimum repayment amount of a credit card is generally 10% of the current bill amount, which will be reflected in the bank’s monthly payment to the cardholder. in the bill. As long as the cardholder's current repayment amount is greater than or equal to the minimum repayment amount on the current bill, and the payment is made on or before the last payment date of the current bill, the bank will treat the cardholder as the current repayment, excluding the cardholder. Late payment on a credit card will not affect the cardholder's credit investigation.

However, if the credit card chooses the minimum repayment amount, the current total bill will no longer enjoy the full interest-free repayment treatment given by the bank. In addition, the remaining outstanding portion will be charged a daily interest rate of 0.5% as the minimum repayment interest. That is to say, if the cardholder chooses the minimum repayment amount of the credit card for the current period, a daily interest of 0.5% of the total bill for the current period and a daily interest of 0.5% of the remaining outstanding amount will accrue. The calculation of the former starts from the recording date of each consumption in the current bill and is calculated to the minimum repayment date of the current period; the calculation of the latter starts from the minimum repayment date of the current period until the cardholder pays off the remaining principal and interest.

For example: Suppose Xiao Ming has a credit card. The credit card bill date is the 16th of each month, and the monthly repayment date is the 5th. The total amount of Xiao Ming’s credit card bill for the current period is 10,000 yuan, and the consumption time is the 10th. The billing date is the 11th, and Xiao Ming’s current repayment date is 10,000 yuan. Therefore, in the next bill, Xiao Ming’s minimum repayment interest for the current bill is: 10,000%% (from the consumption accounting date to the current repayment date) 90,000 %% (from the current payment date to the next bill date) = 304.5 yuan.

3. Is it better to repay the minimum credit card payment or to repay in installments?

Credit card installment repayment generally requires a handling fee of 0.66% per period, while some banks require 0.72% per period. handling fee. As for whether it is better to repay the minimum credit card payment or to repay in installments, it mainly depends on the specific situation of the cardholder. If you have any questions in this regard, you can consult us to calculate the interest generated by the two methods for you. Here, I will also give you an example. Take the above example of Xiao Ming. If Xiao Ming chooses to repay the current bill of 10,000 yuan in 10 installments, and the credit card processing fee is 0.66% per installment, then the processing fee required for the installment of the credit card bill is 10,000.66% = 660 yuan.

If there are any unclear or new situations, we recommend that you call us directly for free consultation so that you can understand the communication case situation and provide you with detailed and targeted answers to avoid problems due to incomplete information and poor communication. , the answer is wrong. I wish you success in safeguarding your rights.