The so-called "credit card allocation/amortization expense" actually refers to allocating the repayment principal to each month, which is simply installment/repayment. For example, if you buy a commodity worth 6000 yuan with a credit card, you can choose to repay it in three installments, and each installment will repay the principal of 3000 yuan.

This way can reduce the repayment pressure to a certain extent, and it is easier to stimulate customers' desire to buy. However, it should be noted that there will be a corresponding installment fee after credit card installment (the corresponding fee rate may be different depending on the number of installments selected).

Benefits of credit card installment payment

Get existing help for credit cards: there is an installment fee for bill installment, and banks will certainly expect cardholders to handle installment affairs frequently. The underlying rule is that after the cardholder handles the bill by stages and asks the bank for cash withdrawal by credit card, the bank will be more willing to approve it and the success rate of cash withdrawal will be improved.

Relieve the repayment pressure: In the case that the single-period bill is too high, the cardholder will have greater pressure to repay in full. If the bill can be divided into several months by stages, the cardholder's repayment pressure will be less.