More and more people are using credit cards, and those who can maintain good consumption and repayment habits naturally account for the majority. However, it is inevitable that a small number of people will not pay enough for one reason or another, resulting in overdue payments. The fees can even affect personal credit. Many people don’t quite understand what credit card default penalties mean. Today I’m going to give you a detailed explanation.

1. What is the meaning of credit card penalty?

With the implementation of the new credit card policy in 2017, penalty has replaced late payment penalty, but there is no difference between the two terms in definition. Credit card liquidated damages refer to the liquidated damages charged by the central bank for the unpaid portion of the minimum repayment amount when the cardholder's actual repayment amount on the due date of the credit card is lower than the minimum repayment amount. The charging standard is the unpaid portion. 5%.

If the Agricultural Bank of China credit card held by card friend Xiaobai has a bill amount of 2,000 yuan for the current period, and only repays 100 yuan on the final repayment day, then the minimum repayment amount is 200 yuan, and there is 100 yuan. If it is not repaid, the liquidated damages will be 100*5%=5 yuan.

2. The difference between liquidated damages and late payment fines

From the perspective of the definition of the new regulations, there is no difference between the two. However, according to the central bank, whether liquidated damages are collected and how? The payment can be stipulated by the bank and the cardholder through an agreement, which is more humane and less administratively coercive than late payment fees.

This human touch is mainly reflected in the fact that there are minimum and maximum charging standards for credit card default penalties, and each bank implements different standards:

At present, credit card default penalties have been implemented The banks under the New Deal include the four major state-owned banks, China Merchants Bank, Shanghai Pudong Development Bank, CITIC, Bank of Communications, Minsheng, Industrial Bank, Guangfa, Ping An, and Postal Savings Bank.

1. Agricultural Bank of China credit card penalty: the minimum fee is 1 yuan, the maximum fee is 500 yuan;

2. Huaxia Credit Card penalty: the maximum fee is 2,000 yuan;

3. CCB credit card penalty: the minimum fee is 5 yuan;

4. China Merchants Bank credit card penalty: the minimum fee is 10 yuan; 5. CITIC credit card penalty: the minimum fee is 20 yuan ;

In addition, there is another difference between credit card default penalties and late payment fees. The bank will charge the default penalty in one lump sum, while the late payment penalty will be compounded on a monthly basis, which means compound interest. Credit card default penalties replace late payment fees, which greatly reduces the pressure on cardholders to repay. But I still want to remind everyone that credit card payments cannot be overdue. No matter how difficult the economy is, you must pay the minimum payment to avoid affecting your personal credit score.