The calculation method of credit card interest of CITIC Bank is compound interest, and the interest included in the principal is called compound interest. If the bill is not paid in full, it will generate interest. Interest is shown on next month's bill and needs to be repaid. If the next month's bill has not been fully paid off, the interest of the first month will be added to the outstanding principal of the bill and recalculated.
If the minimum monthly repayment is made, the interest shall be calculated from the date of consumption. If your bill date is the 3rd of each month and the final repayment date is the 22nd, then if you spend 5,000 yuan on March 20th and repay 500 yuan on April 22nd, the interest generated by the bill on May 3rd is:
5000 * 0.0005 * 45 (March 20th to May 3rd)-500 * 0.0005 *1(April 22nd to May 3rd) =112.5-2.75 = 60.
This is the first month. If you pay back 500 yuan on the 22nd of each month from May 4th, the interest will be:
4500 * 0.0005 * 30 (May 4th to June 3rd)-500 * 0.0005 *1(May 22nd to June 3rd) =64.75 yuan.
Extended data:
Notice of the People's Bank of China on Relevant Issues Concerning the Interest Rate of RMB Loans
About penalty interest. The default interest rate of overdue loans (loans that the borrower fails to repay on the date agreed in the contract) is changed from the current daily interest rate of 2. 1% to 30%-50% higher than the loan interest rate agreed in the loan contract;
If the borrower fails to use the loan as agreed in the contract, the penalty interest rate will be changed from the current daily interest rate of five ten thousandths to 50%- 100% of the loan interest rate agreed in the loan contract.
For loans that are overdue or not used according to the purpose agreed in this contract, interest will be charged at the default interest rate from the date when they are used in loans overdue or not according to the purpose agreed in this contract until the loan principal and interest are fully paid off. For the interest that cannot be paid on time, compound interest shall be calculated at the penalty interest rate.
Baidu encyclopedia-overdue interest