Credit card installment payment refers to the process that the bank pays the consumer funds of the goods (or services) purchased by the cardholder to the merchant in one lump sum when the cardholder uses the credit card to make a large amount of consumption, and then the cardholder repays the money to the bank in installments. According to the cardholder's application, the bank deducts the consumption funds by stages through the cardholder's credit card account, and the cardholder pays a certain handling fee.

What does credit card installment mean?

Installment payment is a payment method for purchasing goods and services.

PayByLnstallments are mostly used for some product transactions with long production cycle and high cost. Such as complete sets of equipment, large vehicles, heavy mechanical equipment and other products. Installment payment means that after the import and export contract is signed, the importer pays a small part of the payment to the exporter as a down payment, and most of the rest is paid in installments after part or all of the products are produced and shipped, or after the goods are installed, debugged, invested and guaranteed.

Installment payment was developed after the Second World War. At first, it was limited to buying ordinary daily goods or services. Later, with the rapid development of productivity, the scale of industrial and agricultural production is expanding day by day, and the required expenses are increasing day by day. In addition, with the development of bank credit, the field of installment payment has expanded to enterprises that buy large machinery and equipment and raw materials.

Why do banks encourage credit card installment repayment?

Banks can earn interest.

The bank asks you to pay in installments because you can earn interest from it. At the same time, it can also ensure that you can take the money out of the bank and return it on time. From this perspective, the bank is a choice to kill two birds with one stone.

Judge personal qualifications.

Of course, in addition to the above two, banks can also judge your qualifications.

Ok, according to your repayment situation, I will give you a credit card limit after analyzing the background data. For example, why do people often receive temporary credit card limits? It is because of your good record of repayment before consumption, and then further consumption.

Why are credit cards automatically phased?

Card friends often encounter such things. Their credit cards are not phased, but automatically phased by the bank. In fact, this kind of thing is more common, so why is the credit card automatically phased?

1, customer service guidance: for example, customer service calls and invites you to apply for installment through various slogans. It is common that the current installment rate is 30% or 20%, or the number of installments is longer, such as the longest 36 and the longest 24. If you are fooled into agreeing, I will apply for automatic staging.

2. Automatic installment of the full amount: When applying for a credit card, the terms are numerous and complicated, and few people will read it carefully. Maybe any bar has an automatic installment clause. If you don't check it carefully, as long as your consumption reaches the standard, it will be automatically phased.

3. We handle automatic installment credit cards: At present, many banks, such as China Merchants Bank, China Construction Bank, Xingye and China Everbright, have launched automatic installment credit cards with the function of automatic installment. Any consumption generated after processing, regardless of the amount, will be automatically phased.

In short, automatic credit card installment is nothing more than these three situations. But in addition to the first case, the installment-related terms are generally listed in the application terms of credit cards, so you need to know the terms before applying for credit cards.

Why is there an introduction to installment credit cards? Let's stop here.