The interest rate for credit card installment payments is relatively high.

Generally speaking, the handling fee for credit card installment repayment for 1 year (12 installments) is lower than the annual cash withdrawal interest rate of 18, and higher than the bank's 1-year commercial loan interest.

Take the installment of a 35,000 yuan bill as an example. The 35,000 yuan bill is divided into 12 installments, and the repayment in each installment is 2,916.67 yuan. The handling fee is 8.85, which is charged once on the first billing day. If other factors are not considered, the convertible nominal annual interest rate is 16.34.

However, the consumer did not always owe the bank 35,000 yuan. Her debt decreased by 2,916.67 yuan every month. In the last month, she actually owed the bank only more than 2,900 yuan, but the bank had already settled the handling fee as 35,000 yuan. The arrears were deducted in one lump sum.

With this comprehensive calculation, the real annual interest rate paid by cardholders is about 17.93, which is nearly three times the bank loan benchmark interest rate of 6.15 during the same period.

Extended information:

Features of credit card installments:

1. Interest-free does not mean free of handling fees

Many banks have issued " "0 interest rate" banner, but charges a handling fee. Convert the handling fee into interest, and generally the basic annualized interest rate is around 15.

2. Early repayment handling fees will still be charged

If the cardholder applies for installment payment, these handling fees must be borne. Some banks also stipulate that if you pay off the installment bill in advance, you will be exempted. A handling fee will be charged for the remaining months.

3. Minimum repayment

When the cardholder is unable to repay the entire amount due before the due repayment date, he can repay according to the minimum repayment amount stipulated by the card issuing bank. Generally, The stipulated minimum repayment amount is 10% of the consumption amount and other various types of payables.

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