1. The minimum repayment amount of credit card is an optional repayment form. There will be full and minimum repayment on the monthly bill. You can choose the repayment form according to your own situation. If you pay the minimum repayment amount before the final repayment date, your credit history will not be affected, and of course there will be no late payment fee.
2. The minimum repayment amount of a credit card can be divided into two parts. One is 10% of the total amount of credit card consumption and cash withdrawal in the current bill (this is the main part, and many cardholders only have this part); 2. 100% of various expenses (annual fee, installment principal, installment interest, the minimum amount of the previous bill, etc.). ).
3. Calculation formula of minimum repayment amount:
Minimum repayment amount = 10% * advance cash principal+10%* non-advance cash transaction principal+expenses+interest+excess consumption+unpaid portion of the previous minimum repayment amount+installment amount, and the specific amount will be indicated in the bill.
Second, the impact of continuous use of the minimum repayment amount
1, full penalty interest
0.05% interest will be charged every day from the date when the consumption amount in the previous period is recorded in the account until it is fully paid off. If the minimum repayment amount is always used, the interest will be calculated according to compound interest, and the more money you owe, it is equivalent to penalty interest.
2. The actual high interest rate
The minimum repayment interest of credit card is 0.05%, which is equivalent to the annual interest rate 18.25%. Plus compound interest, it is a high interest rate.
3, more difficult to control
Long-term repayment with the minimum repayment amount of credit card, I don't feel high interest expenses, and I always think that there is no repayment pressure and I won't control my consumption, which leads to blind consumption concept and difficulty in extricating myself.
4. Bad credit record
Living on the minimum repayment amount for a long time, the more money you owe, the more you can't make ends meet, which leads to the inability to repay your credit card, which in turn affects your personal credit record, and the life with bad credit cards is blocked everywhere.
5. Reduce the quota and seal the card
Long-term use of credit card minimum repayment, some banks will think that you do not have enough financial strength, which may reduce your credit card, cause overdue situation, and seal your card, which is equivalent to being blacklisted by banks.
Extended data:
Skills of increasing credit card limit
First, continuous and frequent credit card consumption
Persistence means that after you have a credit card, you should insist on long-term credit card consumption. It is best to have a credit card spending limit every month for more than three consecutive months. Don't freeze it for a long time.
The frequency is to swipe your card anywhere you can, regardless of the amount. The more credit card times and services, the better. If you swipe your card at one time, it is easy for banks to think that there is a suspicion of cash withdrawal by credit card, and it is difficult to increase the quota.
Second, pay attention to the credit card limit and temporary withdrawal.
Pay attention to the credit card limit and make full use of temporary withdrawals.
Third, stick to application and seize the opportunity of application.
Insist on applying and seize the opportunity to apply, and have both. For credit card users, you can insist on applying by phone to increase the credit card limit, because different customer service or staff have slightly different attitudes and principles in handling this application. Maybe the last one failed and the next one passed. Sticking to the record left by telephone application will also help to increase the application amount in the future.
4. Threaten to use the cancellation card or suspend sleep.
Threaten to use a pin card or suspend sleep. When your application has been rejected many times, you can consider using this trick. Tell the customer service or staff of the bank directly that if the credit card limit cannot meet the actual needs, you will consider returning the card. It is best to present some facts, of course, the attitude should not be too bad, and it is best to combine hard and soft, so that it is easy to get room for discussion and consultation.
References:
Minimum repayment amount Baidu encyclopedia