How to calculate interest on overdue credit card payments

The interest is calculated at 0.05% starting from the record date, and there are also late payment fees. It is best to repay within the grace period of China Merchants Bank. If you exceed the grace period and have the ability, choose to repay in full, then there will be no fee. Otherwise, 0.05% daily interest will be charged, plus late payment fees.

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The consequences of an overdue credit card:

1. Overdue credit card fees are required. When the cardholder fails to repay the credit card before the due date (inclusive) When the repayment or the repayment amount is less than the minimum repayment amount, the fee payable to the card-issuing bank is required.

2. After a user uses a credit card to overdraft, there is generally an interest-free repayment period ranging from more than 20 days to more than 50 days. If the cardholder's repayment is overdue, then all the cardholder's last month's repayments will be lost. Fees no longer enjoy the bank's interest-free treatment, and the recurring daily interest rate is as high as 0.5%, which means the annual interest rate reaches 18%.

3. Credit card overdue repayment records will enter the central bank’s credit reporting system to generate bad credit records.

4. If the credit card is not repaid for more than 3 months, the bank will ask a lawyer to issue a lawyer's letter to the user and file a lawsuit. The litigation costs will be borne by the cardholder.

5. Criminal liability for malicious overdraft. According to Article 196 of my country's Criminal Law and relevant judicial interpretations, malicious overdraft refers to the cardholder's behavior of overdrafting beyond the prescribed limit or within the prescribed period for the purpose of illegal possession and failing to return it after being called by the card issuer. Those who maliciously overdraft and engage in credit card activities will be held criminally responsible for credit card crimes and be subject to a sentence of not more than 5 years or criminal detention, and a fine of not less than 20,000 yuan but not more than 200,000 yuan.

If your credit card is overdue, please note that there is a grace period of 1 to 3 days after the credit card is overdue. As long as you pay off the debt in time within this period, it will not affect your personal tax collection. Of course, the specific time is subject to the announcement of each bank.

If the loan is overdue for more than three days, some online loan platforms will begin strong collection efforts, usually through frequent phone calls and text messages.

The overdue credit card repayment record can be completely eliminated after 5 years, but if the repayment is made on time within 24 months, the previous bad credit record will be refreshed.

Credit card overdue interest

Credit card overdue interest = 0.05% of the credit card consumption amount and the number of days the credit card is overdue. Payment after the repayment date will be considered overdue, and overdue interest will not be eligible. Discount, so the number of overdue days is calculated from the date of consumption. If 10,000 yuan is overdue, the overdue interest will be 5 yuan per day. Even if part of the amount is paid back, the interest on the other part will still be calculated cyclically.

It is calculated from the day you make the purchase, that is, from September 6 to October 8, 1000033 days 0.05% = 165 yuan

The overdue interest on credit cards is very high. It is recommended that you try to repay the consumption amount on the repayment date or during the grace period, otherwise the recurring interest will be calculated as penalty interest, and the repayment burden will be heavy.

Credit card late payment fees refer to the situation where the cardholder's actual repayment amount is lower than the minimum repayment amount on the due date of the credit card, and the cardholder must pay late payment fees for the unpaid portion of the minimum repayment amount. According to our understanding, the proportion of late payment fees is uniformly stipulated by the People's Bank of China, which is 5% of the unpaid portion of the minimum repayment amount. However, due to different policies of each bank, the minimum amount set is also different.

Extended information

The late payment fee is 10% of your unpaid amount, and the interest is charged daily based on the unpaid amount calculated from the day you swipe your card. Five percent interest.

Example: ICBC credit card late payment fee calculation formula: late payment fee = (minimum repayment amount - repaid amount as of the due payment date) × 5%. If a user spends 10,000 yuan by swiping a card and the minimum repayment amount is 1,000 yuan, and does not repay before the due payment date, what is the late payment fee? The credit card late payment fee charged is: 10005% = 50 yuan.

Baidu Encyclopedia_Credit Card Late Payment Fees

How to Calculate Overdue Interest on Credit Cards

1. How to Calculate Overdue Interest on Credit Cards

Payment on Overdue Credit Cards If you make a payment, the interest is divided into two situations:

1. The overdue interest on bank credit cards is generally 0.05% per day, and the interest is calculated and charged at an interest rate of 0.5% The interest rate accrues compound interest until the cardholder pays off the balance in full.

2. Interest will be accrued on the full amount of the overdue balance, and compound interest will be charged on a monthly basis until the cardholder repays it in full. Currently, if a credit card is overdue, the bank will issue agreed interest for 5 months based on the cardholder's failure to repay the minimum repayment amount for more than 3 months.

2. What to do if your credit card is overdue

1. Quick remedy for overdue credit card

(1) If you encounter an overdue credit card, you should immediately call the bank service number and explain that it is not the case. If there is malicious arrears, please pay the arrears in a timely manner.

(2) Under normal circumstances, banks will have a 3-day grace period. Once cardholders find that their credit card is overdue, please handle it immediately to avoid leaving bad records.

2. How to deal with bad records

(1) If the cardholder has left bad records in the bank, do not rush to cancel the card after paying the outstanding balance and explaining the situation. , once the card is canceled, the personal credit record cannot be updated, and the bad record will always be recorded in the bank, causing serious consequences.

(2) The correct approach is to continue to use this credit card and maintain a good credit record for at least 2 years. It will basically not have an impact on personal mortgages, loans, credit card applications and other businesses.

What are the interest rates and late fees for overdue credit cards?

If the credit card consumption is not repaid when it is due, a late payment fee (5% of the minimum repayment amount, minimum RMB 20 yuan or USD 3 yuan) will be charged, and interest will be charged at 50,000 per day; if Repay according to the minimum repayment amount, no late payment fees will be charged, and interest will be charged at 0.5% per day.

Example:

_Mr. Li’s bill date is the 18th of each month, and the repayment due date is the 7th of each month;

_April 18 The current bill printed by the Japanese bank for Mr. Li includes all his transaction accounts from March 19 to April 18;

_Mr. Li only made one purchase in this billing cycle—— On April 15, the consumption amount was RMB 1,000;

_The "repayable amount for this period" of Mr. Li's current bill was RMB 1,000, and the "minimum repayment amount" was RMB 100;

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_Under different repayment situations, Mr. Li’s revolving interest is:

_If Mr. Li repays 1,000 yuan in full before May 7, then on May 7 The recurring interest in the daily statement is 0 yuan, and the bill balance is 0 yuan.

_If Mr. Li only repays the minimum repayment amount of 100 yuan before May 7, the recurring interest on the statement on May 18 = 16.40 yuan, and the bill balance will be 916.4 yuan.

The specific calculation is as follows:

1,000 yuan × 0.05% × 22 days (April 15-May 7)

+(1,000 yuan-100 RMB) The late payment fee and recurring interest on the statement on the 18th = 37 yuan, and the bill balance is 1,037 yuan.

The specific calculation is as follows:

Late payment fee: 100010%5%=5 yuan 20 yuan

Interest: 1000 yuan × 0.05% × 34 days (April 15 (Day - May 18) = 17 yuan

That’s it for the introduction to credit card overdue interest.