What is the difference between an installment credit card and a credit card?

Both credit cards are credit cards, but installment credit cards are actually credit cards launched by banks that automatically install installments for consumption. It is a type of credit card and is different from ordinary credit cards. The main difference is that the installment card will automatically apply for installments when the cardholder's consumption reaches the specified amount, and the cardholder will need to repay in installments later.

Correspondingly, ordinary credit cards will not automatically install installments. After swiping the card for consumption, the cardholder needs to actively propose consumption installments/bill installments to the card-issuing bank, and the bank will issue payment for the consumption/bill installments. Carry out staging.

In addition, the limits of installment cards and ordinary cards are also different. The limit of installment cards is generally relatively high, most of them start at 100,000, but this is not the case for ordinary credit cards. The higher the level of ordinary credit cards, the better the cardholder's personal comprehensive qualifications, the higher the limit, like a regular credit card For high-level cards, the limit is usually several thousand yuan.

But it is a credit card, whether it is an installment card or an ordinary credit card, the cardholder must repay it on time after using it. Otherwise, it will be reported to the central bank's credit reporting system, leaving bad records in the personal credit reporting report and affecting personal credit. There is no difference between the two.

Expand knowledge: Credit card installment

First of all, when using credit card installment service, we should pay attention: Although it is very convenient to use credit card installment now, the interest rate is not as low as you think. Many banks In the promotion, the unit of handling fee will be changed to day. It may sound like a small amount, but in fact the handling fee is a large amount.

1. Advantages of credit card bill installments

1. Relieve stress

When the single-issue bill is too high, the cardholder can repay the loan in full. The pressure will be greater. Bill installment can spread the bill over multiple months, spreading the repayment, and the cardholder will have less repayment pressure. Just imagine, if you ask your parents to borrow it, your family will be worried; if you ask your friends to borrow it, you will owe a favor, and it is better to exchange it for bank interest if you treat guests to dinner in the future.

2. Helps maintain the card

Banks rely on handling fees, interest, annual fees, etc. There are installment handling fees for handling credit card bills in installments, allowing the bank to make money. Of course, banks will hope that cardholders will frequently handle installment business. The underlying rule is that when cardholders apply for bill installments and apply for a credit card limit increase from the bank, the bank will be more willing to approve it, and the success rate of the limit increase will increase.

3. Bill installment discounts

Banks will hold some credit card discounts from time to time, including credit card bill installment discounts. At this time, you can get discounts on credit card bill installments. A certain amount of interest or handling fee is quite worthwhile.

4. Credit card value-added

Bank credit cards generally have special preferential merchants. You can get discounts or gifts with full purchases in shopping malls, and points will be accumulated for consumption, which can be redeemed for gifts or airline miles in the future. Or exchange for cash, etc.

2. Disadvantages of credit card bill installments

1. Installment fees

Each bank charges a certain fee for credit card installment business. Banks charge different fees. Taking China Merchants Bank's 12 installments as an example, the handling fee is 0.66. The longer the installment time, the higher the handling fee. Then, when the installment bill is 5,000 yuan, you need to bear an installment handling fee of 33 yuan per month for 12 installments. *** Bear the handling fee of 396 yuan. Moreover, the handling fee will not be reduced or reduced, and early repayment will also be deducted.

2. Available limit

Since the credit card limit is fixed, if you make bill installments, the flexible use limit will be reduced, which will affect subsequent consumption.

3. Excessive consumption

Since it takes a long time to pay back the money, and only a little bit every month, "I spent 240 yuan and only paid back 20 yuan a month." The repayment method can easily give cardholders the illusion that they spend money casually and repay easily, which can easily lead to excessive consumption, high bills, and selfless consumption.