How to calculate credit card installment repayment interest?
Credit card installment repayment in advance. If the installment interest is paid in one installment, then the early repayment will not refund the money already paid. Interest. The installment fee is paid monthly, and the interest on early repayment is calculated until the day the principal and interest are paid off to the bank. In addition, users may be required to pay a portion of liquidated damages.
When a user settles a credit card installment in advance, the bank may also require the bank to pay a one-time payment of the unpaid installment fee for the remaining principal.
Credit card cash installment interest: The cash installment business has 3 to 24 periods to choose from, and the basic handling rate for each period is as follows. The 3rd period is 0.95%, the 6th period is 0.80%, the 10th period is 0.75%, the 12th period is 0.75%, the 18th period is 0.75%, and the 24th period is 0.75%.
Extended information:
Regarding this issue, in fact, there are differences in the installment interest rates of different banks. Therefore, it is best for everyone to find out clearly from the card issuer before applying for credit card installment. The general calculation is as follows:
1. Credit card installment interest: If you choose to repay the minimum repayment amount, most banks use the full interest calculation method, starting from the date the consumption is recorded, and charge 10,000 per day. Five (i.e. 0.05%) interest, compounded monthly.
Therefore, early repayment in credit card installments is not necessarily cost-effective. When users repay in advance, it is best to calculate it themselves.
After applying for credit card installment repayment, you can repay in advance, but you can only repay the entire amount in advance at one time. Repaying part of the amount in advance is not supported. If you want to repay in advance after the installment, you need to contact the bank to terminate it. For credit card installments, the remaining installment amount after the installment is terminated will be billed in one lump sum on the next billing date, and then all the balance will be paid off before the repayment date.
Most banks have such regulations for credit card installments: even if the loan is repaid in advance, the handling fee will still be charged.
Bank of China
The installment fee will be charged once in the first installment and will not be refunded once collected.
China Construction Bank
The handling fee is collected in installments. The cardholder has successfully applied for the bill installment. If he applies for early repayment, he must pay all the remaining principal and handling fees in one lump sum. , the installment handling fee collected will not be refunded.
China Merchants Bank
The handling fee is collected in installments. If you need to cancel the installment or repay it in advance, you need to apply for installment settlement. The undisbursed installment amount and handling fee must be paid off in one go. , early settlement cannot be revoked.
Bank of Communications
The handling fee is collected in installments. If the installment ends early, the handling fee collected will not be refunded, and the remaining handling fee must be paid in one lump sum.
Guangfa Bank
The handling fee is collected in installments. Early installment repayment can be conveniently processed in online banking. After the early payment is successfully registered, the remaining outstanding handling fees and unpaid principal must be repaid in one go. gold.
Minsheng Bank
The handling fee is charged in installments. For early repayment, the unpaid principal and all handling fees for the remaining periods that have not been paid will be deducted from the account in one go, and Handling fees collected are not refundable.
Hua Xia Bank
The handling fee is collected in installments, and the handling fee for the remaining installments also needs to be paid as usual.
How to calculate credit card installment interest
The maximum credit card installment is 24 months, that is, two years. In bank credit card business, interest is calculated based on the total principal amount for installment repayment and minimum repayment. If you pay in installments, no matter how many months you repay, the interest is calculated based on the total principal amount.
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 in installments The process of repaying money to the bank and paying handling fees. The bank will deduct consumption funds and handling fees from the cardholder's credit card account in installments based on the cardholder's application, and the cardholder will repay according to the monthly credit amount.
In the early days of the credit card installment business, banks often promoted it as "interest-free", and indeed many citizens were "fooled". In fact, interest-free is not free, it’s just called something different.
In general, the one-year credit card installment fee is lower than the annual cash withdrawal interest of 18%, and higher than the bank's one-year commercial loan interest of 5.31%.
It is worth mentioning that commercial bank loan interest rates have been reduced many times in recent years, but the standards for credit card installment fees and cash withdrawal interest have rarely changed. Although the standards for credit card installment fees vary from bank to bank, the calculation method is roughly the same.
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