The interest rate for choosing the minimum repayment on a credit card is still relatively high.

The interest of 0.05% is calculated from the date of consumption, not from the date of billing, and compound interest must be collected. In other words, after paying the minimum payment, you will find that the interest rate in the next month's bill is much higher than expected in just a few days or ten. For example: The bill comes out on August 22nd for 20,000 yuan. On the repayment date on September 10th, you pay the minimum of 8,000 yuan. On the billing date on September 22nd, you will have more than 600 yuan in interest. The repayment date is still the lowest, so the interest on October 22 will be 1,20, and this 601,200 will be included in the unpaid interest for repeated calculation.

1. The meaning of minimum repayment

The minimum repayment amount refers to the cardholder who has difficulty repaying all the amount payable before the due repayment date (inclusive). Repay the card according to the minimum repayment amount stipulated by the card issuing bank, but you cannot enjoy the interest-free repayment period. The minimum repayment amount is 10% of the consumption amount plus other various payables. The minimum payment is listed on the current bill.

2. Repayment Reconciliation

After using your credit card, you will receive a statement from the bank on the billing date. There are two amounts that we need to note. One is the amount due this period, and the other is the minimum payment amount. In fact, this is also a major benefit of credit cards. Once you spend money on the credit card and exceed your repayment range, you can choose to repay with the minimum repayment amount, so that it will not affect your personal credit. But this means that you can no longer enjoy the interest-free period.

3. The meaning of compound interest

Compound Interest means that when calculating interest, the interest for a certain interest calculation period is the principal plus the total interest accumulated in previous periods. The interest calculation method is commonly referred to as "interest talking" and "interest compounding".

4. The formula of compound interest

The present value of compound interest refers to the principal that must be invested today to reach a specific amount of funds in the future when compound interest is calculated. The so-called compound interest, also known as interest plus interest, refers to the method of making a new round of investment with interest after a deposit or investment has received a return.

The compound interest future value refers to the sum of the principal after the principal earns interest within the agreed period, the interest is added to the principal and then the interest is calculated, and the period is rolled over to the end of the agreed period. Simply put, it means depositing A at the beginning of the period, taking i as the interest rate, and depositing the sum of principal and interest after n periods. Formula: F=A*(1+i)^n.