How to calculate credit card loan interest

1. How to calculate credit card loan interest

Credit card interest is calculated on a daily basis, and the daily interest rate is 0.05. The interest on the loan is calculated based on the central bank’s benchmark lending rate. Credit card loan interest is equal to the loan principal multiplied by the number of loan terms multiplied by the loan interest rate. For specific loan interest, you can check the loan contract, which will contain specific loan interest. In addition, credit cards have interest-free periods, but loans do not, and interest needs to be paid on time.

If you lend a credit card to someone else and don't pay it back, you can resolve it through negotiation or you can go directly to the bank. The cardholder and the borrower need to communicate and negotiate first. If the borrower still fails to repay the card, the cardholder can ask the other party to repay the money if the cardholder has evidence that it was the other party who spent the money. If there is no evidence, only the cardholder shall bear the responsibility for repayment. Refusal to pay a larger repayment may lead to a credit card crime. Cardholders need to be reminded that if a credit card is lent to others and others fail to repay the loan, the cardholder will be legally responsible. Because our country's laws stipulate that it is illegal to borrow credit cards.

2. Can overdue credit card interest be reduced or reduced?

Yes, after the credit card is overdue, it can be reduced or reduced as long as it is not malicious default. Failure to repay the credit card overdue is a breach of contract. The bank can require the cardholder to repay the principal as well as overdue interest, late payment fees, over-limit fees, etc. At the same time, the bank can apply to freeze the cardholder's card and classify it as a prohibited customer ( Blacklist), apply to, for enforcement. If a cardholder maliciously overdrafts a certain amount for the purpose of illegal possession, and the card is overdue by more than RMB 10,000, and the card-issuing bank has collected it twice and still fails to pay it back more than three months later, he will be suspected of credit card crime and will bear criminal responsibility.

How much is the interest rate on credit card borrowing?

The interest rate for credit card borrowing depends on the charging standards of the specific card-issuing bank and the type of borrowing, such as credit card consumption, credit card cash withdrawal, and credit card loan. Furthermore, it also depends on whether it is staged.

Take a loan of 10,000 yuan a month from a Bank of Communications credit card as an example:

1. Withdraw cash by credit card, the interest is: 100000.0530=150 yuan, then the total payment is 10,150 yuan ;

2. Haoxiandai, the borrowing interest rate is 0.72, and the interest is: 100000.72=72 yuan, then the total payment is 10,072 yuan;

3. Haoxian loan, The borrowing interest rate is 0.75, and the interest is: 100000.75=75 yuan. Then, the total payment is 10075 yuan.

Credit card installment repayment:

1. There are five types of bank credit card installments: 3, 6, 9, 12, and 24. The handling fee is generally 0.60. How to collect the handling fee The current handling fee is charged every month.

2. If 10,000 is divided into 12 installments, the handling fee is calculated as follows: 100,000.612=720; the principal plus handling fee is calculated as 10,000,720=10,720. Calculated, the monthly repayment is 893.33 yuan.

Credit card installment payment means that when the cardholder uses a credit card to make large purchases, the bank pays the merchant a one-time payment for the goods (or services) purchased by the cardholder, and then allows the cardholder to pay in installments The process of repaying money to the bank. The bank will deduct the consumption funds in installments from the cardholder's credit card account based on the cardholder's application, and the cardholder will repay according to the monthly credit amount. The single-period handling fee is 0~1.67, and one period is one month. The bill installment handling fee is included in the monthly bill of the installment repayment. The handling fee per period = the total installment amount × the handling fee rate per period, the final rate The actual order situation shall prevail. No interest will be charged for timely and full monthly repayment after installment. The principal of each installment = total installment amount/number of installments. The handling fee of each installment = the total amount of installments. The monthly handling rate. The principal and handling fee of each installment are paid monthly. bill. After the cardholder successfully applies for bill installment, the installment amount will be included in the bill starting from the latest installment after the installment. The handling fee for each installment will be recorded at the same time as the installment amount, and will be included in the minimum repayment amount.

If the cardholder fails to repay the remaining balance of the current bill on time after the application is successful, it will be regarded as incomplete repayment, and the current bill will not enjoy the interest-free repayment period for consumer transactions.

What is the interest rate of a credit card?

1. What is the interest rate of a credit card loan?

First of all, everyone must clarify one issue, that is, the more qualified the person who applies for credit loans is, Well, then the personal credit loan interest rate will be lower, and if the applicant's loan qualifications are very poor, then the personal credit loan interest rate will be relatively higher. If there are stains on the applicant's credit record, banks will often increase the personal credit loan interest rate, or directly disapprove or deny the loan. In order to have a good credit record, you must pay attention to repaying the loan on time, especially friends who often use credit cards. If your credit card payments are overdue many times, it will be difficult to apply for a personal credit loan in the future. Even if it can be approved, the interest rate of personal credit loan will be relatively higher.

It is understood that the current personal credit loan interest rate is generally around 2 per month. Of course, the specific personal credit loan interest rate depends on the relevant policies of the lending bank. For example, the monthly interest rate of Standard Chartered Bank's Cash Loan unsecured personal loan is 1.75-2.05, while the interest rate of Citigroup's Xingfu Shidai unsecured credit loan is 8.8 annual interest rate. In addition, the personal credit loan interest rate will also fluctuate to a certain extent depending on the borrower's qualifications. For example, Standard Chartered Bank can enjoy a minimum monthly interest rate of 1.35. Citibank's corresponding loan interest rates fluctuate at a larger rate, generally around 15.

2. How to calculate the credit card loan interest rate?

Currently, the calculation of the 50-day (or 56-day) interest-free period stipulated by various banks is different. It is best for cardholders to Have a bottom line in your heart first. Among them, ICBC stipulates that consumption from this month to the 25th of the next month will be the interest-free period. Assuming that the cardholder made the purchase on the 30th of last month, the interest-free period will be 25 days as of the 25th of this month; if the cardholder made the purchase on the 1st of last month, the interest-free period will be the longest 56 days days; China Merchants Bank Letter

Every card has a billing date, and the interest-free period = 18 days from the billing date. Assuming that the 5th is the billing day of your credit card, then the interest-free period for consumption on the 3rd will be from the 3rd to the 23rd of the month, ***21 days;

If it is on the 6th For daily consumption, the 49-day period from the 6th of this month to the 23rd of the next month is the interest-free period; CITIC also has a monthly accounting date, and the longest interest-free period is 56 days.

Compared with traditional loans, credit card loan interest rates are higher interest rates and interest rates, and their calculation methods are also different from traditional loans. Credit card loan interest rates are calculated based on days, and there is an interest-free period. During the interest-free period, no interest will accrue for loan repayment, but traditional loans will accrue interest, but after the interest-free period for credit cards, the interest rate is higher than The cost of traditional borrowing is much higher.

How much is the interest rate on a credit card?

The annual interest rate for credit cards is generally around 9 to 20. Generally, handling fees are charged based on the number of installments, and no interest is charged. If you use a credit card to withdraw cash, interest is generally charged at a daily interest rate of 0.05%, and compound interest is calculated monthly, but the annual interest rate does not exceed 20%.

According to Article 7 of the "Regulations on the Supervision and Administration of Credit Card Business of Commercial Banks": A credit card refers to a credit card that records cardholder account information, has bank credit lines and overdraft functions, and provides cardholders with relevant banking services. All types of media. Credit cards stipulated in my country's relevant laws ("Interpretations of the Standing Committee of the National People's Congress on Relevant Credit Card Regulations") refer to credit cards issued by commercial banks or other financial institutions that have all the functions of consumer payment, credit loans, transfer settlement, cash deposits and withdrawals, etc. Or an electronic payment card with partial functions. On December 1, 2017, the "English Translation and Writing Standards in the Public Service Field" was officially implemented, stipulating that the standard English name of credit cards is CreditCard.

Credit card consumption is a non-cash transaction payment method. There is no need to pay cash when consumption, and repayment will be made on the billing date (BillingDate).

Credit card annual interest rate

Annual interest rate = installment handling rate / (number of installments 1) 24 = single installment handling rate number of installments / (number of installments 1) 24, the most common The handling fee of 7.2 for 12 periods is equivalent to the annual interest rate of 7.2/(121)24=13.29.

ICBC’s handling fee of 3.58 for 12 periods, the annualized interest rate is 6.61, which is equivalent to 1.1 times the one-year loan benchmark interest rate of 6.0, and is charged in installments of 0.0358/1324=0.06609=6.61.

If the first installment is collected, the annualized interest rate should be divided by (1-installment fee). The initial payment is 0.0358/1324/(1-0.0358)=0.06854=6.85.

Influencing factors:

Policy of the central bank

Generally speaking, when the central bank expands the money supply, the total supply of loanable funds will increase, and the supply will be greater than demand, the natural interest rate will fall accordingly; conversely, if the central bank implements a tightening monetary policy to reduce the money supply, the supply of loanable funds will exceed demand, and the interest rate will rise accordingly.

Price level: The market interest rate is the sum of the real interest rate and the inflation rate. When the price level rises, market interest rates rise accordingly, otherwise real interest rates may be negative. At the same time, due to rising prices, the public's willingness to deposit will decrease while the loan demand of industrial and commercial enterprises will increase. The imbalance between deposits and loans caused by loan demand being greater than loan supply will inevitably lead to an increase in interest rates.

Stock and bond markets: If the securities market is in a rising period, market interest rates will increase; otherwise, interest rates will also decrease relatively speaking.

International economic situation: changes in a country's economic parameters, especially changes in exchange rates and interest rates, will also affect the fluctuations of interest rates in other countries. Naturally, the rise and fall of the international securities market will also create risks for the interest rates faced by international banking business.

That’s it for the introduction to credit card loan interest rates.