The minimum repayment amount should also be paid, just like the normal repayment procedure. You can go directly to the bank for repayment, but the bank won't know your minimum repayment amount. You have to say how much you have left.
Disadvantages of the long-term minimum repayment method: if you choose the minimum repayment method for a long time, you are likely to make ends meet. If the capital chain is broken, it is easy to fail to repay the credit card, resulting in overdue. The minimum repayment amount can also show the repayment ability of the cardholder from the side. If the cardholder always repays in this way, the bank will question the cardholder's repayment ability and reduce the credit card limit.
: the adverse effects of the minimum repayment amount of credit cards
First, generate interest.
If only the minimum repayment amount is paid when the credit card is repaid, the interest will be charged after the due repayment date of the credit card. 0.05% interest is charged every day in the form of full penalty interest, that is, interest is also charged on the repayment part, and the interest is compounded monthly.
Therefore, if the minimum repayment amount has been made, in the long run, it will lead to more and more interest to be repaid.
Second, there is a risk of overdue.
If you keep making the minimum repayment, it will lead to more and more money to be repaid, so in the long run, it may be overdue because it is sometimes not paid.
Third, it is not conducive to increase.
In order to increase the credit card limit, in addition to spending more cards, it is also necessary to repay on time. In addition, banks prefer to pay in full and properly handle customers who pay by installment. If they keep the minimum repayment amount, it is not conducive to increasing the credit card limit and may be reduced.
Fourth, let cardholders have dependence.
Some users think that the minimum repayment amount of credit card can alleviate the current repayment pressure, so they choose the minimum repayment amount every time. In the long run, the minimum repayment amount is also accumulating, which will make you snowball unconsciously.
It can be seen that when using credit cards, you must be clear about your repayment ability and spend reasonably. It is best to repay in full and on time, and occasionally choose installments.
We know that credit card is actually a financial consumption tool, which is more suitable for consumption. However, if cash is used, the daily interest rate of credit card withdrawal is 0.05%, that is, the daily interest rate of 654.38+100,000 yuan loan is 5 yuan, and the withdrawal fee has to be paid, so the comprehensive cost is high. Large consumption can be repaid in installments or the minimum repayment amount. However, no matter which repayment method is adopted, the interest is calculated in equal amount, and the interest is calculated repeatedly based on the total principal of each period. Moreover, credit cards are phased, and there will inevitably be a handling fee for early repayment, so the annual interest rate of credit cards is actually not low at all.