Credit cards will have an interest-free period. If you repay before the due date, no interest will accrue, but if it is overdue, there will be late fees.
Take a credit card with a limit of 10,000 as an example. The billing date of this card is the 10th of each month, and the final repayment date is the 30th of each month. The cardholder spends RMB 10,000 by swiping the card on November 1, and the bill is issued on November 10. The minimum repayment amount is RMB 10-1,000 of the total consumption: If the cardholder deposits RMB 10,000 before November 30, Repayment in full means no interest or late fees will be incurred;
If the cardholder chooses the minimum repayment, that is, only deposits 1,000 yuan into the credit card after the 10th and before the 30th, it will Interest of 0.05% per day accrues. When the bill is issued again on December 10, a total interest of RMB 200 will be generated. The calculation method is: 10,000 (consumption last month) multiplied by 40 (number of days from the accounting date to the current bill date) multiplied by 0.0005 (interest )=200 yuan. You will definitely ask, why is the interest calculated based on 10,000 yuan? Didn’t you pay back 1,000? Why is it 40 days? The last repayment date is November 30th, and there are only 10 days until the new bill date is December 10th.
This is one of the things that people tend to make miscalculations. The card issuer will tell you: "Due to failure to pay off the balance on time, the cardholder is not allowed to enjoy the interest-free period; the bank will be responsible for all the current balances. Interest is levied on a daily basis, and the calculation of the number of days is based on the principle of 'pay first, pay first'. "According to this interest calculation method, if a cardholder spends 10,000 and repays 9,999 and owes one yuan to pay off, he will have to wait until the next month's credit card bill to pay off. When it is sent over, the interest on it will still be RMB 200.
At present, all domestic bank credit cards adopt this interest calculation method. Therefore, cardholders please pay special attention to avoid paying a few dollars less due to calculation errors, resulting in hundreds of extra interest charges on next month's bill.