What are the advantages and disadvantages of credit card installment?

1. Benefits of credit card installment The advantage is to reduce the burden. When the single-issue bill is too high, the cardholder will be under greater pressure to repay in full. The bill installment can spread the bill to multiple months, spreading the repayment, and the cardholder's repayment will be reduced. The payment pressure will be less. Just imagine, if you ask your parents to borrow it, your family will be worried; if you ask your friends to borrow it, you will owe a favor, and it is better to exchange it for bank interest if you treat guests to dinner in the future.

2. Credit card value-added discounts: Bank credit cards generally have special discount merchants. You can get discounts or gifts for purchases in shopping malls, and points are accumulated for purchases, which can be exchanged for gifts, airline miles, or cash in the future.

3. Helps to increase credit card limit: Banks rely on handling fees, interest, annual fees, etc. There are installment handling fees for handling credit card bills in installments, which allows the bank to make money. Of course, the bank will hope to keep the balance. Cardholders often handle installment business. The underlying rule is that when cardholders apply for bill installments and apply to the bank for a credit card limit increase, the bank will be more willing to approve it, and the success rate of the limit increase will increase.

4. There are discounts for credit card bill installments: Banks will hold some credit card preferential activities from time to time, including credit card bill installment preferential activities. At this time, when you apply for credit card bill installments, you can reduce or reduce a certain amount of interest or It’s the handling fee, but it’s quite worthwhile.

2. Disadvantages of credit card bill installments

1. Reduce the available limit: Since the credit card limit is fixed, if the bill is installed in installments, the flexible utilization limit will be reduced, which will affect the acceptance of credit cards. down consumption.

2. It can easily lead to over-consumption: Since it takes a long time to repay the money, and only a little bit is repaid every month, the repayment method is "spend 240 yuan and only repay 20 yuan a month" It is easy to give cardholders the illusion that they spend money casually and repay easily, which can easily lead to excessive consumption, high bills, and selfless consumption.

3. Bear the installment handling fee: Every bank charges a certain handling fee for credit card installment business, and different banks charge different fees. Taking China Merchants Bank's 12 installments as an example, the handling fee is 0.66. The longer the installment time, the higher the handling fee. Then, when the installment bill is 5,000 yuan, you need to bear an installment handling fee of 33 yuan per month for 12 installments. *** Bear the handling fee of 396 yuan. Moreover, the handling fee will not be reduced or reduced, and early repayment will also be deducted.

Why do banks keep calling me to do credit card installment?

If you have a credit card, do you often receive calls from your bank asking if you want to apply for credit card installment business? Anyway, I only have a China Merchants Bank credit card in hand, and customer service calls every now and then to invite me to apply for installment plans. So, why do banks keep calling me to do credit card installments?

The reasons why banks always call and invite cardholders to do credit card installments:

1. Credit card installments are profitable

All banks’ credit card installment businesses include bill installments , cash installment, car installment, merchant installment, etc., there is no interest-free service. Cardholders need to bear a certain rate of handling fees according to the number of installments selected. The monthly rate is basically between.

Banks are not charitable institutions. It is also a profitable act to always call cardholders to invite them to make installments.

2. Reduce bank risks

Many people use credit cards to overdraft. When the bill amount comes out, they do not have the ability to repay the full amount. The bank proactively calls to invite installments to avoid continuing to pay. If the cardholder is overdue, it will affect his credit report.

3. Salespeople work hard for personal performance

The bank has dedicated outbound customer service representatives for the installment payment business. These people have daily performance appraisals, and the greater the volume of business introductions, the greater their The higher the commission, so it is more active to make daily phone calls to invite cardholders to do credit card installments.

Why do banks encourage credit card installment payments?

The bank can earn interest

The reason why the bank calls you to ask you to repay in installments is because the bank can earn interest from it.

At the same time, it can also ensure that the money you withdraw from the bank can be paid back on time. From this point of view, banks are a choice that kills two birds with one stone.

Judge your personal qualifications

Of course, in addition to the above two, banks can also judge your qualifications.

Based on your repayment status and after conducting background data analysis, we can increase your credit card limit for you. For example, why people often receive temporary credit card limits? It is because of your good record of previous consumption and repayment, and then you continue to spend more.

What are the advantages and disadvantages of credit card bill installment? Should you apply for it?

If you have used a credit card, you should have been advised by the bank to apply for credit card installment repayment. However, you have always heard that credit card installment repayment is not worthwhile, but there are People also say that it is beneficial to apply for credit card bill installments. Should we apply for credit card bill installments? What are the advantages and disadvantages of applying for credit card bill installment? When should it be done? When should you not do it?

A must-see for the important introduction! The most common misunderstandings about credit card installment repayment interest in 2015

1. Advantages of credit card bill installment

1. Relieve repayment pressure: The biggest benefit of handling credit card installment business is definitely Reduce the burden. When a single period's bill is too high, the cardholder will be under greater pressure to repay in full. Bill installment can spread the bill over multiple months, spreading the repayment and reducing the cardholder's repayment pressure. It will be smaller. Just imagine, if you ask your parents to borrow it, your family will be worried; if you ask your friends to borrow it, you will owe a favor, and it is better to exchange it for bank interest if you treat guests to dinner in the future.

2. It helps to increase the credit card limit: Banks rely on handling fees, interest, annual fees, etc. There are installment handling fees for handling credit card bills in installments, which allows the bank to make money. Of course, the bank will hope to keep it. Cardholders often handle installment business. The underlying rule is that when cardholders apply for bill installments and apply for a credit card limit increase from the bank, the bank will be more willing to approve it, and the success rate of the limit increase will increase.

3. Credit card bill installments have discounts: Banks will hold some credit card preferential activities from time to time, including credit card bill installment preferential activities. At this time, when applying for credit card bill installments, you can reduce or reduce certain interest or It’s the handling fee, but it’s quite worthwhile.

4. Credit card value-added discounts: Bank credit cards generally have special discount merchants. You can get discounts or gifts for purchases in shopping malls, and points are accumulated for purchases, which can be exchanged for gifts, airline miles, or cash in the future.

2. Disadvantages of credit card bill installments

1. Bear the installment handling fees: Each bank charges a certain handling fee for credit card installment business, and different banks charge different fees. . Take China Merchants Bank in 12 installments as an example. The longer the installment time, the higher the handling fee. Then, when the installment bill is 5,000 yuan, you need to bear an installment handling fee of 33 yuan per month for 12 installments** *Bear the handling fee of 396 yuan. Moreover, the handling fee will not be reduced or reduced, and early repayment will also be deducted.

2. Reduce the available limit: Since the credit card limit is fixed, if you make bill installments, the flexible use limit will be reduced, which will affect subsequent consumption.

3. It can easily lead to over-consumption: Since it takes a long time to repay the money, and only a little bit is repaid every month, the repayment method is "spend 240 yuan and only repay 20 yuan a month" It is easy to create an illusion for cardholders, that is, they spend money casually and repay easily, which easily leads to excessive consumption, high bills, and selfless consumption.

3. Notes on credit card bill installments

1. If you repay in advance, the handling fee will still be charged: This is a misunderstanding among many cardholders. They think that if you repay in advance, the handling fee will not be charged. The handling fee is charged, but this is not the case. The credit card installment agreements of most banks stipulate that even if the customer repays the loan early, the handling fees within the application period must be paid normally and will not be reduced or reduced due to early repayment.

2.

There is a limit for credit card installments: Generally speaking, the credit card installment limit is between 500 and 1,500, and different banks have different regulations.

Not all bills can be installed in installments. Generally, 90-95 of the "installable portion" (excluding cash withdrawals and installment shopping transactions) can be installed in installments.

4. Should we apply for credit card installment?

From the credit card itself and from an economic point of view, the advantages should outweigh the disadvantages; from a financial management point of view, the disadvantages should outweigh the advantages. Of course, there are advantages to installment. , can reduce cash outflow, and the money generated can be invested in a long-term fixed way, obtaining more stable benefits, and can also reduce the pressure of repayment, making it less likely to be overdue. Of course, there are advantages and disadvantages, and the shortcomings of credit card bill installments cannot be avoided. The handling fee does not include points. The longer the period, the higher the handling fee, and it must be borne by the cardholder himself.

After summarizing the advantages and disadvantages of credit card trap installment, card friends should have a basic understanding of credit card bill installment. Whether they should choose credit card bill installment depends on their own situation. It is recommended that cardholders consume reasonably while also making reasonable use of their credit limit, because although the benefits of bill installment are many, it also occupies the fixed limit of the credit card. For cardholders with low limit, consider all aspects before making a decision. It’s too late.

Why do banks always call you to apply for credit card installment?

With the continuous development of social economy, we will encounter various problems that make us feel very confused in our real life, especially banks will always call us and ask us to solve them. When many friends encounter this problem about credit card installments, they are very confused. Why do banks always call them and ask them to apply for credit card installments? In fact, the purpose of banks doing this is to improve their bank's earning capacity, and the installment process requires relevant handling fees, and it can bind customers for a long time, so this is the bank's main purpose.

I believe that many friends have encountered such a problem in real life, that is, the bank will always call themselves and ask themselves to handle this business, but the most important thing is to handle this business with the bank. The purpose is to make your customers rely on your own bank. In other words, it is to increase customer stability, because many users will get a lot of discounts as long as they apply for credit card installments, and the discounts can make users long-term Time depends on the bank.

Of course, the more important thing is not just that. As long as users rely on their own banks and can use projects such as installments, they will pay a certain handling fee for a long time. If a bank's users can pay themselves handling fees in installments, then the bank's business will be better carried out and it is likely to bring good income to the bank, which is also very good for the development of the bank, which is Why do banks have to call their customers for a long time to request installments?

To sum up, we understand that when the bank calls us to apply for bank card installment, we must pay attention to these related thoughts, and the bank is here to help us get more during the installment process. There is a handling fee, so we cannot handle installments at will. We must trust our own consumption habits and change our consumption habits.

This is the end of the introduction on why you should apply for credit card installment and why credit cards always ask you to apply for installment. I wonder if you have found the information you need?