Can the credit limit be used after installment?
If you apply for installment, the installment limit will occupy your credit card limit. After each installment is credited and repaid, the limit will be It will be gradually released.
Suppose your quota is 10,000, and you apply for an installment of 6,000, without any other consumption, then your available quota is 4,000. If 1,000 yuan is credited to the account in installments in the first month and you repay the loan, the available limit will be restored to 5,000, and so on.
The unpaid installment amount will occupy the available credit limit. For example, if the credit limit is 10,000 yuan, if you swipe 6,000 yuan and apply for installment, there will still be 4,000 yuan available on the card. As the monthly repayments are made, the available credit is restored accordingly with the repayment amount.
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 and paying handling fees.
The bank will deduct the consumption funds and handling fees 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.
In the early days of the credit card installment business, banks often promoted it as "interest-free", and indeed many citizens were "fooled". In fact, interest-free is not free, it’s just called something different.
In general, the one-year credit card installment fee is lower than the one-year cash withdrawal interest of 18, and higher than the bank's one-year commercial loan interest of 5.31. It is worth mentioning that commercial bank loan interest rates have been reduced many times in recent years, but the standards for credit card installment fees and cash withdrawal interest have rarely changed.
Although each bank's credit card installment fee standards are different, the calculation method is roughly the same.
Assume that the installment amount is 1,200 yuan, divided into 12 installments, with each installment (month) repayment of 100 yuan, the handling fee is 0.6/month, and the actual monthly deduction is 100 1200 × 0.6 = 107.2 yuan. If other factors are not considered, the convertible nominal annual interest rate is 7.2.
However, the cardholder did not always owe the bank 1,200 yuan. In the last month, he actually owed the bank only 100 yuan, but the bank still charged a handling fee of 1,200 yuan.
According to calculations, the true annual interest rate paid by cardholders is approximately 15.48. According to the correct calculation formula, it should be 1200*0.6*(1 0.6)^12/((1 0.6)^12-1)=103.94 yuan, which means an extra 3.2 handling fee per period.
From the perspective of the form of installment payment, when cardholders handle this business, the starting amount of a single transaction is limited, and the installment repayment grades and handling fee standards are also different; it can be roughly divided into three types. Category:
The first category is carried out by banks in cooperation with special merchants, but the product types are limited;
The second category is that banks provide product catalogs, and cardholders can choose from the catalog. After purchasing, the bank then entrusts the supplier to deliver the goods to the customer;
The third category is not limited to merchants and goods. After the cardholder purchases, he or she can apply for installment repayment from the bank. Some banks even accept the payment. The scope is set to global. Can I still use Huabei after repaying it in installments?
After Huabei repays in installments, you can continue to use it as long as there is still available credit. Moreover, Huabei’s credit limit is revolving, so it can generally be restored after repayment. Therefore, after Huabei applies for installment repayment, a part of the quota will usually be restored every time one installment is repaid, and the user can use this part of the restored quota.
However, after Huabei makes installments, it is usually included in the next installment's bill for repayment. Therefore, if you apply for installment repayment of all your Huabei quota, you can only use it after the repayment next month and the quota is restored. Before repayment, because the quota has been used up and all the installments have been applied for but have not been restored, the user has no available quota to use.
Of course, the Huabei quota can usually be restored as soon as the loan is repaid, so if the user needs it urgently, they can also choose to repay in advance, so that the quota can be restored in advance. However, everyone also needs to be aware that if there has been bad behavior before that caused credit problems, the system may reduce the credit limit for risk control, and may also choose not to restore the credit limit after the user repays the loan. Will the installment repayment amount be restored? Can the credit card be used again?
If the credit card limit is continuously restored during installment repayment, the credit card limit will be restored after the installment payment is completed. The normal use of the credit card will not be affected during the installment repayment period, and the credit card can be used again.
Normally, the one-time money deposited to a credit card is not used to repay the installments. After the cardholder applies for installment payment, the bank system will make transfers every month as required. During this period, the one-time repayment will be regarded as deposited cash, and this part of the funds will be used first when using the card for consumption in the future.
Currently, if you fail to repay as required when using your credit card, there will be three types of penalties: late payment fees, handling fees, and interest, and the penalties vary. When applying for installment payment, in addition to monthly product installment fees, you also need to pay installment handling fees. Currently, the handling fee is up to RMB 1 and in foreign currencies up to RMB 3.
Among the various repayment methods, only if you repay in full every month before the bill is due, no other fees will be deducted. Before handling the installment payment procedures, cardholders should consult clearly on matters such as early repayment to avoid unreasonable application deadlines and excessive payment of handling fees.
Extended information
Instalment payment
Credit card installment payment means that when the cardholder uses a credit card to make large purchases, the card-issuing bank pays the merchant a one-time payment. The consumption funds of the goods (or services) purchased by the cardholder will be deducted from the cardholder's credit card account in installments according to the cardholder's application, and the cardholder will repay according to the monthly credit amount.
In the past, credit card installments mainly included bill installments and single consumption installments. Banks usually charged corresponding handling fees based on the number of installments. Whether it is bill installment or single consumption installment, the premise is that consumption behavior occurs first, and then the bank sets the installment repayment of the credit loan generated.
Most banks in China have credit card installment services. Installments are generally divided into shopping mall (POS) installments, "mail order installments" and bill installments through the Internet, mail, etc. depending on the occasion. .
1. Shopping mall installment
(1) Also known as POS installment, it means that cardholders go to shopping places, such as "malls" where installment can be purchased. When checking out, please show a credit card that supports installment payment at the mall and indicate that you need to pay in installments. The cashier will swipe the card on a dedicated POS machine according to the number of issues required by the cardholder (such as 3 issues, 6 issues, 12 issues, etc., a few shopping malls support 24 issues).
(2) Note: Cardholder identity verification is required when making installment purchases in the mall, so remember to bring your ID card. Shopping mall installments are generally free of charge for three installments. The rates for 6 and 12 periods vary from bank to bank. Installment products can generally be purchased as long as they are normally sold in the shopping mall. In many cases, cardholders can also bundle multiple items together for checkout and then make installment payments.
2. Mail order installment
It means that the cardholder receives the installment mail order catalog manual sent by the card-issuing bank (or the bank's online installment mall) and chooses from limited products. Then order through the online installment mall, call or fax the mail order installment application form, etc. to the bank for installment mail order. There is generally no handling fee for mail order installments regardless of the number of installments. However, due to the long ordering cycle (in many cases it will take more than 15 working days to get the product) and the relatively cumbersome return and exchange process, it is recommended to do more comparisons before purchasing.
3. Bill installment
(1) This is the most convenient installment method. Basically, all card-issuing banks can support this installment method, and the application is simple. Users only need to submit an installment application to the card-issuing bank by phone or other methods after swiping their card for consumption and before monthly bills are sent.
(2) However, it should be noted that each bank will stipulate some special cases. For example, speculative card swiping will not be successful in installments. So before proceeding with staging, be sure to read the staging manual carefully.
(3) The disadvantage of bill installment is that the handling fee cannot be waived. The longer the number of installments, the higher the handling fee, which must be borne by the cardholder himself.
Reference material: Baidu Encyclopedia - Can the credit limit be used after the credit card installment?
After the credit card installment, the credit limit can still be used, but the premise is that the credit card status is normal and there are no overdue debts. The funds are not subject to bank risk control. Under risk control, credit cards cannot be used even if they have a limit.
The available limit of a credit card can be used for consumption, cash withdrawal, and transfer, and the limit after the credit card installment is the available limit.
The credit limit refers to the maximum overdraft limit that the bank gives your credit card when it approves your credit card. You can only use the card to make purchases within this limit. If you exceed this limit, you will not be able to use the card to make purchases normally.
The credit limit is determined based on a comprehensive evaluation based on the information you filled in when applying for a credit card and the relevant supporting documents provided. The principal card and supplementary card*** share the same limit. Under normal circumstances, the RMB limit and the USD limit in the dual-currency credit card limit can be converted to each other.
For those with fixed incomes, civil servants or those employed in financial institutions such as large banks have the highest quotas. The size of the company where the individual works and his or her job level also have a great impact. The type of household registration will also have an impact. The biggest impact is usually personal income (i.e. ability to repay debt, including asset status, historical credit record, etc.).
When applying for a credit card from China Merchants Bank, you will basically have a limit of 5,000-10,000 yuan; the initial limit of a Bank of Communications credit card is around 5,000 yuan. In addition to the relatively high credit limit, the credit limit of China Merchants Bank credit cards is also very fast. As long as you use it normally, you can usually increase the amount in 3-6 months, and the amount increase can reach 30%.
The Bank of Communications card application threshold will be relatively low, so the probability of large amounts is relatively high, reaching 74. As long as the information is complete and the credit is not compromised, you can basically apply for the card.
The initial limit of the Bank of Communications card will be around 5,000 yuan, but you should be careful when using the card in the future. If you use the card incorrectly, you will be targeted.
Applying for a Pudong Development Bank credit card requires complete information and good credit, and the probability of large amounts is 71%. Pudong Development Bank pays more attention to an individual's comprehensive credit score, so a good credit record will be the secret to Pudong Development Bank's large-value cards.
The probability of placing a large-value card with Guangfa can reach 67. The main reason is that the platinum card is relatively easy to get approved. If you have a real estate certificate, the platinum card is basically guaranteed. If you are lucky, you can get 5- 100,000 quota.
The probability of Everbright Bank’s large-amount card approval is 66, which may be relatively low, but it is quite easy to increase the amount, and the temporary limit is also very high. Some netizens reported that the platinum card was given a limit of 100,000 during the interview.