Is it cost-effective to pay off a credit card in installments?

Credit card installment interest is determined based on the length of the installment. The charging standards for handling fees vary from bank to bank. Generally speaking, the greater the number of installments, the higher the handling fee rate. In addition, some banks will charge a certain handling fee when applying for credit card installments. The credit card installment rate seems low, but the actual annualized rate is not low because the principal is being repaid every month, but the monthly handling fee is fixed.

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1. Can I repay the credit card installment in advance?

Yes, but it should be noted that after the credit card installment, try not to apply for early repayment. The reason is that many banks still charge handling fees or late fees for users who repay their loans early. Except for Industrial and Commercial Bank of China, most banks stipulate that if the cardholder repays the loan early, he must pay all the remaining principal and handling fees in one lump sum.

2. Does the credit card consumption installment affect the mortgage approval?

After the credit card consumption installment, if each installment is repaid on time and the debt ratio is not high, it will not affect the user's mortgage approval. . After the user has made an overdue record after installment, and the existing debt exceeds 50% of the personal debt ratio, this will directly affect the results of the mortgage review, because banks have greater risks in lending money to users.

3. Will credit card installments affect your credit score?

No, credit card installments will not affect your personal credit score because it is not considered an overdue repayment. However, it should be noted that if the cardholder still cannot repay the loan on time after applying for installment repayment, it will affect his personal credit score. In addition, you need to be reminded that applying for credit card repayment will affect your personal limit, and you will also need to pay a certain amount of installment fees.

4. Credit card loan interest rate

Using a credit card to apply for installment is a credit card loan. Installment will incur handling fees. Each bank's credit card installment interest rate is different. For example, the ICBC credit card installment interest rate is: 6 Period 1.8, Period 9 2.7, Period 12 3.6, Period 18 5.85, Period 24 15.6 (one-time charge).

5. Is a credit card a

No, a credit card is not a . Credit cards are credit certificates issued by commercial banks or credit card companies to consumers with qualified credit. They are loans with high interest rates and are usually private loans. They are two completely different concepts. Even from the perspective of interest, credit cards generally calculate interest at an interest rate of 0.05 per day when cash is withdrawn or overdue. When converted into an annual interest rate, it is only 18, which is far lower than 36.

Is credit card installment payment cost-effective

Although credit card installment payment can reduce our repayment pressure, it is not particularly cost-effective in terms of the handling fees. Of course, credit card installment also has certain benefits, and it can help us increase the limit of our credit card.

Credit card repayment

The common domestic credit card repayment methods mainly include the following categories (according to the cost):

In-bank repayment

The repayment methods mainly include: card issuing bank counter, ATM, online banking, automatic transfer, telephone banking repayment, etc. After repayment, the credit card limit will be restored immediately, and the payment will generally be credited to the account after the system processes it on the same day.

Mobile repayment

The mobile phone is a personal payment terminal of the mobile financial system, which can be used to directly repay the loan by swiping the card, and can also perform transfers and other services. Instant payment!

Convenience store repayment

Convenience store repayment is mainly completed through the "Lakala" smart payment terminal installed in the convenience store. It usually takes 2 to 3 working days to arrive in the account, and there is no handling fee for repayment using this method.

Online repayment

The more common online repayment methods in China include: Baidu Wallet, UnionPay Online, Kuaiqian, Shengfutong, Alipay, Yipay, etc. Depending on the platform and bank you choose, the charging standards and specific payment arrival time will be different.

Inter-bank transfer

Inter-bank transfer/remittance repayment is mainly divided into two methods: inter-bank in the same city and inter-bank in different places. Regardless of the method of transfer or remittance, the remittance bank will charge a certain fee. At the same time, the time it takes for the money to arrive and the convenience of repayment are not as good as intra-peer repayment, online repayment, convenience store repayment and other methods.

Counter Pass

Counter Pass refers to the bank cards issued by various networked financial institutions. RMB current deposits can be made through the counters of other bank branches registered in the UnionPay Exchange Center host system. Withdrawal transactions.

Lakala

Cardholders can complete credit card repayments, mobile phone recharges, online bill payments and other services through convenience stores, bank outlets or purchasing "Lakala" device terminals.

Xinfutong

The "Xinfutong" smart card swiping phone was independently developed by China UnionPay, certified by the Bank Card Testing Center, and provided with financial service support by China UnionPay's inter-bank information exchange network of innovative electronic products.

Repayment Tong

Use "Repayment Tong" to repay, and the fees are generally charged according to the fee standards for intra-city inter-bank transfers and long-distance inter-bank remittances stipulated by the local People's Bank of China.

Intelligent repayment

The new industry, its main function is to use the balance of about 5-10% in the card to formulate a consumption and repayment plan and then execute automatic payment through a licensed payment company The purpose of recurring consumption repayment is to achieve full repayment, and a certain handling fee is charged. The basic functions include bill management, local payment, free card application, etc.

Is it cost-effective to pay in installments with a credit card?

This problem cannot be generalized and can be divided into the following two situations:

1. For users who are under temporary financial pressure, credit card installment payment is more cost-effective, and using credit card installment payment can alleviate the problem. Temporary financial pressure on users. However, there will be certain installment fees when choosing credit card installment payment. The specific fees will depend on how many installments the individual repays. In addition, users must repay on time after choosing installments to avoid affecting their personal credit score.

2. For users without financial pressure, credit card installment payment is not cost-effective, because installment payment will incur installment fees, which means that users have to spend more, so it is not cost-effective

Extended information:

The number of installments available for a credit card mainly depends on the regulations of the issuing bank and the type of installment business handled by the customer. However, the available installment ranges for most bank credit cards mainly include 3, 6, 9, 12, 18, and 24 installments; some bank credit cards can also be divided into 2 or 10 installments. Special installments, as well as the super long-term installment of 36 installments (for details, please call the customer service of the card-issuing bank, and it will be subject to the installment page).

When customers apply for credit card installments, they just need to choose the appropriate number of installments based on their own needs and repayment ability. However, everyone needs to note that the installment fee may also be different depending on the number of installments selected. Of course, generally the longer the credit card installment period, the more installment fees you have to pay.

It is recommended that customers do not always apply for long-term installments, so as not to make the bank think that the repayment ability is insufficient, which is not conducive to increasing the card limit. Usually, it is enough to choose the number of periods from 3 to 6. If you want a longer period, 12 periods is enough, and it does not need to be too long.

Credit card installments are not considered loans:

Whether it is credit card bill installments, consumption installments, or cash installments, they are all credit card business, not loans. In the personal credit report, it is also shown in the credit card record in the credit record, not in the loan record.

Some people may mistakenly think that cash installment is a loan, but it is not. For example, some cash installments will occupy the credit card consumption limit, which will not be recorded independently. Special cash installments that do not occupy the credit card consumption limit will open a separate account, but will also be reported as an electronic credit card on the personal credit report. in the form of a loan, rather than in the form of a loan.

Of course, whether it is a credit card installment or a loan, customers must remember to repay on time.

Otherwise, once it is overdue, a bad credit record will be left in the personal credit report, and it will usually be retained for at least five years after the customer pays off the credit before it can be deleted. By then, whether it is a credit card overdue record or a loan overdue record, personal credit will be damaged.

That’s it for the introduction of whether credit card installment payment is economical.