Credit cards are different from quasi-credit cards. Credit cards can be overdrawn with a minimum interest-free period of 25 days and a maximum interest-free period of 56 days. There is no interest-free period for quasi-credit card consumption, and there is no interest-free period for overdraft withdrawal, and interest will be charged at the rate of five ten thousandths per day!
Credit card overdraft interest rate mainly refers to the interest rate generated by the cardholder's current bill amount not being repaid in full and on time, and the interest rate that the cardholder should pay in the current period when using the credit card.
All along, the daily interest rate of credit card overdraft has been adjusted between 0.05% and 0.035% in both city commercial banks and state-owned banks. The lower limit is 0.035%, the upper limit is fixed at 0.05%, and the converted annualized interest rate is about 15- 18%.
However, with this notice from the central bank, it means that the overdraft interest rates of all banks may change with the market at will, and it is very likely that banks will reduce the overdraft interest rates of credit cards according to the usage of our accounts in banks.
Then for our cardholders, the overdraft interest rate of each credit card may be different, and the difference may be quite large. But at present, the credit card market is basically fixed, and there may not be a price war initiated by banks in a short time.
In the Notice of the People's Bank of China on Promoting the Market-oriented Reform of Credit Card Overdraft Interest Rate, the central bank also requires credit cards to display the annualized interest rate in an obvious way, not just the daily interest rate and the daily repayment amount.
Coupled with the previous requirement to display the annualized loan interest rate, when we choose to open a credit card in the future, we can see our actual annualized loan interest rate and the annualized credit card interest rate at a glance.
When choosing a credit card, we can choose a credit card with a lower overdraft interest rate to register and use according to the discount comparison given to us by various banks.