Misunderstanding 1. Credit card installments are interest-free and no fees are charged. Credit cards are wonderful and there are many activities, such as credit card installments that are interest-free. Although when consulting the staff, we learned that credit card consumption is interest-free, but when checking the credit card bill, But I found that there was an extra handling fee. What happened? After understanding, it turns out that most credit card installment purchases are "interest-free but no handling fee", that is, no interest is charged, but corresponding handling fees must be paid. Therefore, you need to understand clearly about credit card installment activities. Interest and handling fees are different.
Myth 2: Credit card installment repayment in advance can be exempted from handling fees. When cardholders feel pressured by the current repayment amount, most will choose to repay in installments. There are generally two methods of collecting handling fees for installment repayment: one-time payment, that is, the consumer pays the first installment bill amount and the installment handling fee at once; monthly payment, that is, the handling fee is paid together with the monthly installment. Many banks charge a one-time handling fee. Even if the consumer decides to repay the loan in advance after the first installment, the handling fee paid cannot be refunded. As for installments, if the handling fee is evenly divided into the repayment amount of each installment, in this case, if the consumer repays the loan early, he still needs to pay all the installment handling fees.
Myth 3: Credit card installment can take advantage of everyone is happy to use credit card installment shopping, think it is economical and affordable, only charges handling fees, no interest. But in fact, it is impossible for banks to lend money to everyone for consumption in vain. In fact, the handling fees charged by banks when applying for credit card installments have already factored in the expected annualized interest rate. The handling fees for credit card installments are higher than the expected annualized interest rates for loans of the same grade. It’s much higher, so don’t think that you can take advantage of credit card installment. If you don’t have a large purchase or are short of funds, or there are credit card installment discounts, don’t choose the credit card installment business easily. The advantage of credit card installment is that it reduces the current financial pressure and at the same time makes money for the bank, which will help to increase the balance in the future.
Myth 4. After the minimum repayment is repaid, interest will still be charged on the full amount. Many people will choose to repay with the minimum repayment (the minimum repayment of most banks is the total amount owed on the bill) 10%), which on the one hand can alleviate the financial pressure of cardholders, and on the other hand will not create a bad credit record. In fact, the cost of doing this is relatively high. If you only repay the minimum payment amount, and the bill exceeds the latest payment date, there will be no interest-free discount, and the bank will calculate the interest on the outstanding balance. Until full repayment is made, interest is calculated based on the total amount owed on the bill for that period.
Misunderstanding 5. Overdue penalty interest, it doesn’t matter if you pay late. Generally, according to bank regulations, the calculation of interest on the unpaid amount is divided into two parts: one part is the period from the consumption date (or the next day) to the actual repayment of the full amount of the consumption. The interest is 0.05% per day on the payment day (or the same day); the other part is the interest on the unpaid amount. If the repayment is not made in time, the daily interest will be five ten thousandths of the sum of the principal plus the previous day’s interest. As a reminder, credit card interest adopts a daily simple interest and monthly compound interest system. The interest rate is "rolling like a donkey". The later the repayment is, the higher the amount of penalty interest will become.
Misunderstanding 6: Never leave a small change in repayment. Credit card interest rates are very overbearing, and full penalty interest is imposed on overdue credit card payments. In fact, this point is a continuation of the previous point. The repayment must be in full, and you cannot pay a penny less. For example: the credit card bill in October owes 10,000 yuan, and the cardholder repays 9,999 yuan, leaving 1 yuan unpaid. After the latest payment date, the bank will still calculate interest based on 10,000 yuan. .