How to calculate credit card loan interest

1. How to calculate credit card loan interest

Credit card interest is calculated on a daily basis, and the daily interest rate is 0.05. The interest on the loan is calculated based on the central bank’s benchmark lending rate. Credit card loan interest is equal to the loan principal multiplied by the number of loan terms multiplied by the loan interest rate. For specific loan interest, you can check the loan contract, which will contain specific loan interest. In addition, credit cards have interest-free periods, but loans do not, and interest needs to be paid on time.

If you lend a credit card to someone else and fail to repay it, you can resolve the matter through negotiation, or you can directly go to court to file a lawsuit. The cardholder and the borrower need to communicate and negotiate first. If the card borrower still does not repay the card, if the cardholder has evidence to prove that the other party spent the money, he can sue the other party in court to make the other party repay the money. If there is no evidence, only the cardholder shall bear the responsibility for repayment. Refusal to pay larger repayments may lead to credit card fraud. Cardholders need to be reminded that if a credit card is lent to others and others fail to repay the loan, the cardholder will be legally responsible. Because our country's laws stipulate that it is illegal to borrow credit cards.

2. Can overdue credit card interest be reduced or reduced?

Yes, after the credit card is overdue, it can be reduced or reduced as long as it is not malicious default. Failure to repay the credit card overdue is a breach of contract. The bank can require the cardholder to repay the principal as well as overdue interest, late payment fees, over-limit fees, etc. At the same time, the bank can apply to freeze the cardholder's card and classify it as a prohibited customer ( blacklist), sue the court and apply for enforcement. If a cardholder maliciously overdrafts a certain amount for the purpose of illegal possession, and the card is overdue by more than RMB 10,000, and the card-issuing bank has collected it twice and still fails to pay it back more than three months later, he will be suspected of credit card fraud and will bear criminal responsibility. How much is credit card interest?

The annual interest rate for credit cards is generally around 9 to 20. Generally, handling fees are charged based on the number of installments, and no interest is charged. If you use a credit card to withdraw cash, interest is generally charged at a daily interest rate of 0.05%, and compound interest is calculated monthly, but the annual interest rate does not exceed 20%.

According to Article 7 of the "Regulations on the Supervision and Administration of Credit Card Business of Commercial Banks": A credit card refers to a credit card that records cardholder account information, has bank credit lines and overdraft functions, and provides cardholders with relevant banking services. All types of media. Credit cards stipulated in my country's relevant laws ("Interpretations of the Standing Committee of the National People's Congress on Relevant Credit Card Regulations") refer to credit cards issued by commercial banks or other financial institutions that have all the functions of consumer payment, credit loans, transfer settlement, cash deposits and withdrawals, etc. Or an electronic payment card with partial functions. On December 1, 2017, the "English Translation and Writing Standards in the Public Service Field" was officially implemented, stipulating that the standard English name of credit cards is Credit Card.

Credit card consumption is a non-cash transaction payment method. There is no need to pay cash when consumption, and repayment will be made on the billing date.

Credit card annual interest rate

Annual interest rate = installment fee/(number of installments 1)*24 = single-period handling rate*number of installments/(number of installments 1)*24, The most common handling fee of 7.2 for 12 periods is equivalent to an annual interest rate of 7.2/(12 1)*24=13.29.

ICBC’s handling fee of 3.58 for 12 periods, the annualized interest rate is 6.61, which is equivalent to 1.1 times the one-year loan base interest rate of 6.0, and is charged in installments at 0.0358/13*24=0.06609 =6.61.

If the first installment is collected, the annualized interest rate should be divided by (1-installment fee). The initial payment is 0.0358/13*24/(1-0.0358)=0.06854 =6.85.

Influencing factors:

Central Bank’s policies

Generally speaking, when the central bank expands the money supply, the total supply of loanable funds will increase, and the supply will be greater than If the demand is high, the natural interest rate will fall; on the contrary, if the central bank implements a tightening monetary policy to reduce the money supply, the supply of loanable funds will exceed the demand, and the interest rate will rise accordingly.

Price level: The market interest rate is the sum of the real interest rate and the inflation rate. When the price level rises, market interest rates rise accordingly, otherwise real interest rates may be negative. At the same time, due to rising prices, the public's willingness to deposit will decrease while the loan demand of industrial and commercial enterprises will increase. The imbalance between deposits and loans caused by loan demand being greater than loan supply will inevitably lead to an increase in interest rates.

Stock and bond markets: If the securities market is in a rising period, market interest rates will increase; otherwise, interest rates will also decrease relatively speaking.

International economic situation: changes in a country's economic parameters, especially changes in exchange rates and interest rates, will also affect the fluctuations of interest rates in other countries. Naturally, the rise and fall of the international securities market will also create risks for the interest rates faced by international banking business. 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 a question, that is, the better the qualifications of the person applying for the credit loan, then the interest rate of the personal credit loan will be will be lower, and if the applicant's loan qualifications are very poor, 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 Cash Loan unsecured personal loan is 1.75-2.05, while the interest rate of Citigroup's Xingfu Shidai unsecured credit loan is 8.8 annual interest rate. 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

Every 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 will be 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. How much is the credit card installment interest?

Bank of Communications credit card installment repayment interest is determined based on the amount of your installment and has nothing to do with the number of installments. For example:

1. Above 500 yuan, 0.72 per month;

2. Above 6,500 yuan, 0.70 per month;

3. Above 12,500 yuan, per month 0.68 per month.

The maximum number of installments is 24.

If you pay in 24 installments, the repayment in each installment = 36,000/24 ??installments, the handling fee is 36,000*0.68=1,744.8 yuan.

Compared with bank loans, because the loan types and interest calculations are different, it is recommended to consult the relevant bank for detailed charging standards.

1. Credit card installment payment means that when the cardholder uses a credit card to make large purchases, the bank pays the merchant a one-time payment for the goods (or services) purchased by the cardholder, and then allows the cardholder to pay The process of repaying the loan in installments to the bank and paying handling fees.

The bank will deduct the consumption funds and handling fees in installments from the cardholder's credit card account based on the cardholder's application, and the cardholder will repay according to the monthly credit amount.

2. Generally, the one-year credit card installment fee is lower than the one-year cash withdrawal interest of RMB 18, and higher than the bank's one-year commercial loan interest of RMB 5.31. It is worth mentioning that commercial bank loan interest rates have been reduced several times since last year, but the standards for credit card installment fees and cash withdrawal interest have rarely changed. Although the standards for credit card installment payment fees vary from bank to bank, the calculation method is roughly the same.

Reference: Baidu Encyclopedia: Credit Card Installment