Why does a credit card have recurring interest?

1. The so-called revolving interest is charged when you use revolving credit to repay or use cash advance. To put it simply, if you cannot repay the full amount every month, you must pay the minimum amount first. Interest accrues on repayments. Revolving interest is triggered when you always make the minimum payment.

2. Revolving interest is the interest generated when you fail to repay in full. The number of interest accrual days starts from the recording date of each account to the date the account is paid off. The daily interest is 10,000 Five-fifths is the interest rate. If you use the cash advance function of a credit card, recurring interest will also accrue, and interest will be charged at a daily interest rate of 0.05% from the day of withdrawal to the date of repayment, and compound interest will be charged on a monthly basis until you pay it off. Revolving interest means that after the cardholder makes a purchase and does not pay off the entire bill on the final repayment date, interest will be calculated from the day the purchase is recorded. Let’s take a simple example to illustrate the problem: For example, your bill date is the 18th of each month, and the payment due date is the 7th of each month. Then the current bill includes the period from July 19th to 8th. For all consumption records between the 18th of August, if you only consumed 1,000 yuan in the last month, then the current bill will be 1,000 yuan, and the minimum repayment is 100 yuan. If you only repay on August 18 If you pay 100 yuan, the recurring interest is 16.4 yuan. It seems relatively small, but if the amount is relatively large, then the cyclic interest will become more. If the minimum amount is repaid several times in a row, it will not only affect your credit, but also cause the cyclic interest to increase indefinitely. Revolving interest is charged on a daily basis, but compound interest is charged on a monthly basis, which does not mean it is deducted every month. If the user repays the consumption amount in full on the repayment date, then there will be no recurring interest. If you use the cash advance function and use it every month, recurring interest will be deducted every month.

In addition, if you do not repay in full, choosing the minimum repayment will also generate recurring interest, because users who choose the minimum repayment cannot also enjoy the interest-free service of the credit card.

What is the recurring credit card interest?

1. Credit card recurring interest refers to the interest generated when the cardholder uses the credit limit repeatedly. The recurring credit limit generally refers to the interest generated by the cardholder. Only pay the minimum payment. In addition, credit card overdraft withdrawals will also accrue interest and cannot enjoy the interest-free repayment period.

2. Whether a credit card generates recurring interest depends on the following three situations:

1. If all consumption payments are paid off in full before the due payment date of the current bill cycle , you can enjoy the interest-free period by swiping your card for consumption, and no recurring interest will be generated;

2. If the current bill is not paid off in full on time, it will be regarded as using revolving credit, and all consumption in the current period will be deducted from the billing date. (Usually the second day after consumption) Interest will begin to be accrued, with a daily interest rate of 5/10,000, until all is paid off;

3. If the cash advance function is used, the cash advance portion If you are unable to enjoy the interest-free period, interest will be accrued from the day you withdraw the cash, with a daily interest rate of 0.05% and compound interest calculated monthly until it is paid off.

1. The calculation of credit card interest mainly includes the following situations:

1. Cash withdrawal interest: After using a credit card to withdraw cash, the bank will charge cash withdrawal interest on the cash withdrawal part, and the daily interest rate is 10,000 Five-fifths, the calculation formula is: cash withdrawal interest = 0.05 days of cash withdrawal.

2. Minimum repayment interest: After applying for the minimum repayment amount, the bank will levy minimum repayment interest on the remaining unpaid portion. The daily interest rate is also 0.5%. The calculation formula is: minimum Repayment interest = 0.05 days for the minimum repayment part.

3. Overdue interest: When a credit card is overdue for repayment, the bank will charge overdue interest on the overdue portion. The daily interest rate is 0.5%. The calculation formula is: overdue interest = 0.05 days of overdue repayment.

2. In addition, the credit card bill records the amount of credit card consumption last month, this month's repayment amount, minimum repayment amount, repayment date and other information. If the credit card is paid in full before the final payment date, there will be no interest.

If the repayment amount exceeds the minimum amount but is not repaid in full, you will need to pay interest. The amount of principal that each bank charges interest on is different, but it is certain that all banks will accrue interest. As long as the credit card is paid off before the repayment date, the repayment date will be shown on your credit card statement. The bank will send this statement to your mailbox every month, so you can check it regularly.

What is credit card revolving interest?

Credit card revolving interest is often a kind of interest generated when the cardholder fails to repay the entire amount of the bill or borrows cash in advance. For example, in the current bill, the cardholder did not repay the entire amount during the interest-free period, but only paid part of the amount or used the minimum repayment amount. In this case, the bank will not consider the user to be overdue. At this time, the user Revolving credit is generated. The bank will charge a certain amount of interest for the unpaid part, usually the daily interest rate is 0.05%. Until the user repays everything, the interest generated during this period is recurring interest.

In addition to recurring interest on the entire amount of unpaid bills, cash advances also accrue recurring interest. Because cardholders cannot enjoy interest-free when borrowing cash in advance. Usually banks will calculate interest from the day the loan is borrowed, and the daily interest is also 0.5%, and compound interest is calculated monthly until it is repaid. This is also one way credit cards recycle interest.

If the cardholder repays the entire repayment amount of the current bill between the statement date and the repayment date when using a credit card, there will be no credit card recurring interest. Because at this time the user's credit consumption is within the interest-free period of the credit card and will not accrue any interest.

This is the end of the introduction to what is the revolving interest rate of credit cards.