Credit card repayment can be divided into many types, full repayment, minimum repayment and installment repayment. Credit cards are easy to swipe, but when you don't return them, choosing the minimum repayment amount or installment repayment can also alleviate the economic pressure. But at the same time, there is no free lunch in the world, and all these have to pay interest. Many friends ask if it is cost-effective to repay credit cards in installments. Just get everyone together and find a way.
Credit card installment repayment rate
The interest rate of credit card installment repayment may be different from bank to bank, generally in. In most cases, the handling fee for installment repayment is shared monthly. Is this interest rate high? Let's take an example to see:
Assuming that the credit card consumption is 12000 yuan, 12 installments, and the interest rate is calculated in installments, then:
Installment fee 12000 yuan.
The monthly installment payment is12000/12+864/12 =1072 yuan.
Is the installment rate high?
Judging from the above example, it seems that the monthly handling fee is not very high, and it is only in 72 yuan every month, and most of them are affordable. But to say whether the interest rate is high or not, we can convert it into annual interest rate. Introduction, the most convenient and quick way to apply for a credit card is to poke here and apply for a card quickly!
It should be noted that the annual interest rate here is not so simple. In fact, the interest rate you bear is much higher than this, which is just an illusion.
The reason is that the calculation basis of this interest rate has always been based on the total installment amount, but in fact, after you pay off 10, your debt is only 2400 yuan, but the handling fee is still calculated at 120000.6%=72, so the annual interest rate is ≠ 7.2%.
What is the actual annual interest rate?
In fact, the actual annual interest rate of credit card installment should be calculated with reference to a formula in average capital. Similarly, using the above example, the annual interest rate calculated by the monthly interest rate can actually be calculated by online tools.
Compared with ordinary online loans, our interest rate is not high, but it is not as cost-effective as it actually looks. Just evaluate yourself.
Is it cost-effective to repay the credit card in installments? Let's call it a day. In fact, in general, the credit card installment fee is still within the acceptable range. Compared with overdue, it is certainly wiser to choose staging. It is best to pay attention to consumption and live within our means.
Is credit card installment appropriate?
Credit cards can be repaid in installments. Most banks can be divided into six periods, 12, 18, 24 and 36. Cardholders can apply for installment repayment according to their repayment ability.
Under normal circumstances, for no special reason, the installment repayment application can be approved by the bank credit card center. Even many banks, in order to promote their performance, will take the initiative to arrange customer service to remind the card owner that they can repay the consumer bill by telephone in installments after the card owner's consumer bill is generated.
However, it should be noted that if you want to repay by installments, you must submit an installment application before the repayment date of the bill. Don't wait until the repayment date to apply for installment repayment because repayment is blocked.
In this way, not only can you not repay by installment, but it will even be regarded as overdue credit card arrears, and overdue records will be included in the personal credit information system, which will seriously affect your subsequent credit information.
Moreover, credit card installment repayment needs to pay a certain fee, which is related to the bank to which the credit card belongs and the installment times, because the repayment rate of each bank is different, and different installment times will also lead to different repayment rates.
Therefore, how much handling fee should be paid for credit card installment repayment depends on which bank the cardholder uses, the amount of the bill to be installment, the number of installments selected, and finally how much handling fee should be paid.
Moreover, once the installment repayment application is approved, all the handling fees will be generated immediately. If the cardholder repays according to the installment plan, the handling fee will be repaid on a monthly basis like the installment amount. However, if the cardholder wants to repay the loan in advance after paying a certain number of installments when the economy allows, he must not only pay the installment principal, but also pay all the handling fees.
For example, if the number of installments originally applied by the cardholder is 12, then even if all the principal of the eighth installment is repaid in advance, the handling fee of 12 will still be paid. Therefore, the card owner needs to pay attention to this rule in the process of repayment, and don't think that he has repaid in advance and failed to pay the subsequent handling fee, resulting in problems in the repayment record.
Is it cost-effective to repay the credit card in installments?
Credit card installment interest is determined according to the installment time, and the charging standard of handling fee is different in different banks. Generally speaking, the more stages, the higher the handling fee rate. In addition, some banks will charge a certain fee for credit card installment. The credit card installment interest rate seems to be low, and the actual annualized rate is not low, because the principal is repaid every month, but the monthly handling fee is fixed.
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1. Can I prepay by credit card installment?
Yes, but it should be noted that you should try not to apply for prepayment after credit card installment, because many banks still charge fees or late fees for users who prepay. Except for ICBC, most banks stipulate that cardholders must pay off all the remaining principal and handling fees in one lump sum if they repay in advance.
2. Does the installment of credit card consumption have an impact on mortgage approval?
After credit card consumption is phased, if each installment is repaid on time, the debt ratio is not high, which will not affect the user's mortgage approval. After the installment, the user has overdue records, and the existing liabilities exceed 50% of the personal liabilities, which will directly affect the results of mortgage review, because the risk of bank lending to users is greater.
3. Will credit card installment repayment affect credit reporting?
No, credit card installment repayment will not affect personal credit information, because it is not overdue, but it should be noted that if the cardholder fails to repay on time after applying for installment repayment, it will affect personal credit information. In addition, it should be reminded that applying for credit card repayment will affect the personal quota and you need to pay a certain installment fee.
4. Credit card loan interest rate
Credit card installment is a credit card loan, and there will be a handling fee for installment. The credit card installment interest rate of each bank is different. For example, the interest rate of ICBC's credit card installment is 1.8% for the 6th installment, 2.7% for the 9th installment, 3.6% for the 1st installment, 5.85% for the 1st installment, and 5.6% for the 24th installment16 (one-time charge).
5. Is the credit card++?
No, credit cards are not++. Credit card is a credit certificate issued by commercial banks or credit card companies to eligible consumers, while++is a loan with high interest, which usually belongs to private lending. These are two completely different concepts. Even from the interest point of view, credit cards usually pay 0.05% interest every day when they are withdrawn or overdue, and the annual interest rate is only 18%, far below 36%.
Is it worthwhile to pay by credit card installment?
1. Credit card installment business usually charges cardholders a certain standard handling fee, which is equivalent to the interest paid when applying for a consumer loan from the bank. Therefore, credit card installment is essentially a disguised consumer loan. Although this disguised consumer loan interest rate is far lower than the annual overdraft interest of credit card 18% and the interest generated by "rolling interest", it may be higher than the normal consumer loan interest rate of banks. The reason is that the calculation method of handling fee is: transaction amount × monthly rate × number of periods. Although the handling fee may be charged in the first payment or once a month, the amount of the two is the same. Generally speaking, the more staging times, the higher the handling fee. With the increase of repayment, the money owed to the bank decreases, but the handling fee will not decrease with the progress of repayment, which is different from the calculation method of bank loan interest.
2. Credit card installment business usually charges cardholders a certain standard handling fee, so if you are not short of money, you can choose to repay in full, otherwise it is not cost-effective, but if you are short of money, installment payment is also a good way to alleviate the financial pressure.
For more information about credit card installment, please visit: See More.
Is it cost-effective to pay by credit card?
This problem cannot be generalized and can be divided into the following two situations:
1. For users with temporary financial pressure, credit card installment payment is more cost-effective. Using credit card installment payment can alleviate the temporary economic pressure of users. However, if you choose to pay by credit card installment, there will be a certain installment fee, which depends on the number of individual repayment periods. In addition, users also choose to repay on time after installment, so as not to affect personal credit information.
2. For users without financial pressure, credit card installment payment is not cost-effective, because installment payment will generate installment fees, which means that users have to spend more money, so it is not cost-effective.
Extended data:
The number of credit card installments mainly depends on the regulations of the issuing bank and the types of installment business handled by customers. However, most bank credit cards mainly have three periods, six periods, nine periods, 12 periods, 18 periods and 24 periods. Some bank credit cards can be divided into two special periods: 10 and 36 periods (please call the customer service of the issuing bank for details, subject to the installment page).
It is enough for customers to choose the appropriate number of installments according to their own needs and repayment ability when staging credit cards. However, it should be noted that the installment fee rate may be different depending on the number of installments selected. Of course, the longer the number of credit card installments, the more installment fees you have to pay.
Customers are advised not to always apply for long-term installment, so as not to make the bank think that the repayment ability is insufficient, which is not conducive to increasing the card amount. Usually, it is enough to choose 3 to 6 periods. If the period is long, 12 is enough, not too long.
Credit card installment is not a loan:
Whether it is credit card bill installment, consumption installment or cash installment, it belongs to credit card business, not loan. In the personal credit report, it is also displayed in the credit card record in the credit record, not in the loan record.
Some people may mistakenly think that cash installment is a loan, but it is not. For example, some cash installments will occupy the credit card consumption quota and will not be accounted for independently; Separate accounts will be opened for special cash installments that do not occupy the credit card consumption limit, but they will also be displayed in the form of electronic credit cards instead of loans in personal credit report.
Of course, whether it is a credit card installment or a loan, customers should remember to repay on time. Otherwise, once it is overdue, it will leave a bad credit record in the personal credit report, and it will generally take at least five years for the customer to delete it after paying it off. At that time, both overdue credit card records and loans overdue records will lead to personal credit damage.
Is it cost-effective to pay by credit card in installments?
Credit card installment means overpaying the handling fee. The handling fee rate of credit cards varies from bank to bank, but it is mostly between 0.6% and 0.8%.
If you can't repay in full at one time, applying for installment payment can alleviate the financial pressure. Whether the specific charges are cost-effective or not depends on whether your handling fee can be borne.
Extended data:
Credit card installment means that if a single consumption amount reaches the minimum consumption amount stipulated by the bank, the cardholder can apply to the bank to split the consumption into several repayments, and the bank will charge the consumption into your credit card account several times.
Supplement: When each cardholder applies for a credit card, the bank will ask him to choose a date or a default date as the billing date.
Apply by phone or physical bank.
Because the cardholder does not spend in the cooperative merchants (shopping malls or online) of the issuing bank, that is, the products purchased by the cardholder do not come from the merchants designated by the issuing bank, but apply for installment business after consumption, so don't confuse consumption installment with mail order installment and merchant installment.
1. Cardholders need to apply for installment before the billing cycle after consumption (between the consumption date and the billing date), otherwise the bank will deduct their credit card amount and cannot return it. (The specific application date depends on the bank)
After successful consumption, you can apply within 10 days before the due repayment date after the bill date.
2. The interest-free repayment period of general consumption installment business is 50 days, but it is 56 days for Shanghai Bank and 5 1 day for Minsheng Bank.
When the cardholder repays the loan outside the interest-free period (overdue repayment), he has to pay a certain amount of late payment fee (5% of the unpaid part) and interest (five ten thousandths of the unpaid part, calculated by compound interest), and some banks will set a minimum amount of late payment fee.
3. The cardholder's consumption amount cannot be fully converted into installment payment. General banks stipulate that 90% of the cardholder's consumption amount can be converted into installment payment, that is, the cardholder has to pay a down payment of 10%.
References:
Encyclopedia-credit card installment payment
So much for the introduction of credit card installment payment.