Interest is required but no handling fee is required.

The minimum repayment amount is only 10% of the total overdraft, which may seem easy, but it may not be true. After the minimum repayment amount, although you can continue to enjoy revolving credit, you will no longer enjoy the interest-free repayment treatment. The bank will also charge interest on the entire consumption amount at a daily interest rate of 0.05% starting from the date when the consumption is recorded. The annual interest rate is 0.5%. Up to 18.25%.

The minimum repayment amount is generally to repay 1/10 of the overdraft amount of the month, while installment repayment means dividing the original one-time repayment amount into several installments. Currently, many banks’ credit cards only require a single payment. When your consumption reaches a certain amount, you can enjoy the installment repayment function.

Experts have calculated that credit card installments may not be more cost-effective than car loans. Assume that a consumer uses bank installment payment to purchase a car worth 100,000 yuan, and the repayment is divided into 24 installments. If the handling fee rate is 7.0%, the first month's handling fee will be 7,000 yuan, and the monthly repayment will be 4,166.67 yuan.

If the consumer goes to the bank to apply for a car consumer loan, based on a two-year benchmark interest rate of 5.40%, the total interest required to be paid is 5,400 yuan. The latter can save 1,600 yuan compared with the former.

Extended information:

New regulations on credit cards in 2019:

The maximum interest-free period for credit cards may exceed 60 days. According to the current "Bank Card Business Management Measures", the interest-free repayment period for credit cards is up to 60 days, and the minimum repayment amount in the first month must not be less than 10% of the overdraft balance of the month. The new regulations relax the above restrictions, and the specific operation methods are decided by the card issuing bank.

The minimum repayment amount is determined by the bank independently. Before the new regulations, the minimum credit card repayment limit was 10% of the overdraft consumption limit; after the new regulations, the minimum credit card repayment limit in the first month is determined by the bank.

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People's Daily Online - New credit card regulations in 2019? The minimum repayment amount is no longer one-size-fits-all