What is the interest rate of a credit card?

1. What is the interest rate of a credit card loan?

First of all, everyone must clarify one issue, that is, the more qualified the person who applies for credit loans is, Well, then the personal credit loan interest rate will be lower, and if the applicant's loan qualifications are very poor, then the personal credit loan interest rate will be relatively higher. If there are stains on the applicant's credit record, banks will often increase the personal credit loan interest rate, or directly disapprove or deny the loan. In order to have a good credit record, you must pay attention to repaying the loan on time, especially friends who often use credit cards. If your credit card payments are overdue many times, it will be difficult to apply for a personal credit loan in the future. Even if it can be approved, the interest rate of personal credit loan will be relatively higher.

It is understood that the current personal credit loan interest rate is generally around 2% per month. Of course, the specific personal credit loan interest rate depends on the relevant policies of the lending bank. For example, the monthly interest rate of Standard Chartered Bank's unsecured personal loan is 1.75%-2.05%, while the interest rate of Citigroup's Xingfudai unsecured credit loan is 8.8% per year. In addition, the personal credit loan interest rate will also fluctuate to a certain extent depending on the borrower's qualifications. For example, Standard Chartered Bank can enjoy a minimum monthly interest rate of 1.35%. Citibank's corresponding loan interest rates fluctuate at a larger rate, generally around 15%.

2. How to calculate the credit card loan interest rate?

Currently, the calculation of the 50-day (or 56-day) interest-free period stipulated by various banks is different. It is best for cardholders to Have a bottom line in your heart first. Among them, ICBC stipulates that consumption from this month to the 25th of the next month will be the interest-free period. Assuming that the cardholder made the purchase on the 30th of last month, the interest-free period will be 25 days as of the 25th of this month; if the cardholder made the purchase on the 1st of last month, the interest-free period will be the longest 56 days days; China Merchants Bank Letter

When using a card, each card has a billing date, and the interest-free period = 18 days from the billing date. Assuming that the 5th is the billing day of your credit card, then the interest-free period for consumption on the 3rd is from the 3rd to the 23rd of the month, ***21 days;

If it is on the 6th For daily consumption, the 49-day period from the 6th of this month to the 23rd of the next month is the interest-free period; CITIC also has a monthly accounting date, and the longest interest-free period is 56 days.

Compared with traditional loans, credit card loan interest rates are higher interest rates and interest rates, and their calculation methods are also different from traditional loans. Credit card loan interest rates are calculated based on days, and there is an interest-free period. During the interest-free period, no interest will accrue for loan repayment, but traditional loans will accrue interest, but after the interest-free period for credit cards, the interest rate is higher than The cost of traditional borrowing is much higher.

Credit card interest rate

Nowadays, the credit card interest of various banks is generally calculated on a daily basis, with a daily interest rate of 0.05%, and compound interest is calculated on a monthly basis. Take a credit card consumption limit of 10,000 as an example , repay in 1 year, and the daily interest rate is 0.05%, then the calculated interest for one year is 11985.65 (including compound interest), the pure interest is 1985.65 yuan, and the annual interest rate = 1985.65/10000 = 19.86%. In other words, the annual interest rate of bank credit cards is 19.86%.

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1. The actual interest rate calculation method of credit card installment interest rate

The interest rate of credit card bill installment is a repayment method of equal principal and interest, including Mortgage loans are all repayments with equal principal and interest. (Equal payments of principal and interest means repaying the same amount of repayment every month during the repayment period, including principal and interest) 2. Why are bank credit card installment interest rates so high?

After reading the above calculation, a question will pop up in our mind, why is the installment interest rate so high? Then we must first understand the differences between the three repayment methods: equal principal and interest, equal principal and interest first.

1. Equal principal and interest: refers to repaying the same amount of loan (including principal and interest) every month during the repayment period.

2. Equal principal amount: refers to dividing the total loan amount into equal parts during the repayment period, and repaying the same amount of principal and the interest generated by the remaining loan in that month every month.

3. Interest first, principal later: means that after the loan is disbursed, the interest is paid first, and then the principal is paid according to the repayment agreement.

What is commonly used in life is equal principal and interest and interest first and principal second.

Equal-amount principal is not commonly used because the repayment amount changes every month. Banks are unwilling to do this business because the actual interest rate of equal-amount principal is lower than equal principal and interest. Customers are not willing to do this business because of the high pressure of early repayment and the amount of each installment. They are all changing, I don’t have a good memory, I find it troublesome, and I don’t like using equal amounts of principal.

Most of the repayment methods are to repay a fixed principal and handling fee every month after installments. This is the equal principal and interest repayment method in mortgage loans. For specific calculation methods and calculation methods, you can check Baidu Encyclopedia "Equal Principal and Interest". The formula always has factorial and there is no way to calculate it in writing, so we randomly found a "mortgage calculator" on the Internet and set our total loan amount to 10,000. For 12 periods a year, we found that when the annual interest rate is set to 13, the interest is 718 yuan. That is to say, if you pay 10,000 yuan in 12 installments and pay 0.6% interest in each installment, the actual annualized rate will be 13%.

Actual annualized interest rate = nominal annualized interest rate × 2-1. (Approximately equal to)

Credit card installment actually provides everyone with a convenience most of the time, not a wise loan method. During the Chinese New Year period, I paid a relatively low nominal annualized rate of 4.2%. It seems that using a credit card is just more convenient, not cheap.

What does the credit card (debit card) overdraft interest rate mean?

The overdraft interest rate of a credit card (debit card) has two meanings. The first is that the user’s minimum repayment or overdue payment will accrue interest on a daily basis. This overdraft interest rate is a daily interest rate of 0.05%. The second meaning is that if the user has exhausted the credit limit of the credit card (debit card) and continues to use it beyond the limit, the bank will charge a certain over-limit fee, and the over-limit fee is also charged according to a certain interest rate.

Therefore, for users, credit card (debit card) overdraft interest rate is an additional charge. Under normal circumstances, credit card (debit card) is exempt from interest.

That’s it for the introduction to what credit card loan interest rates are.