When repaying a credit card, if it is only the minimum payment, it will generally not affect your personal credit. As long as you pay the minimum payment amount of the current bill before the repayment date, it will not be overdue. Some banks will also have a grace period for repayment. However, once the amount owed reaches the point where you are unable to repay it, there will be a risk of overdue payment, which will create a bad record on your personal credit report, which will have an impact on your future business with the bank. Credit card is actually a financial consumption tool, which is more suitable for consumption. But if you use cash, the daily interest rate for credit card withdrawals is 0.05, that is, the daily interest rate for borrowing 10,000 yuan is 5 yuan, and you also have to pay a cash withdrawal fee, so the overall cost will be very high. Large purchases can be repaid in installments or with minimum repayments. However, no matter which repayment method is used, the calculation is based on equal principal and equal interest, and the interest is calculated repeatedly based on the total principal in each period. Moreover, there are no handling fees for credit card installments and early repayments. In this way, the annual interest rate of the credit card is actually not low at all.

1. The adverse effects of the minimum payment on a credit card

Accrue interest

If you only pay the minimum payment when repaying a credit card, then when the credit card is over When the repayment due date is reached, interest will begin to accrue. Interest of 0.05 will be charged every day, and it will be charged in the form of full penalty interest. That is, interest will also be charged on the repayment part, and compound interest will be calculated on a monthly basis.

Therefore, if you keep making the minimum payment, in the long run, you will have to pay more and more interest.

2. There is a risk of overdue payment. If you keep making the minimum payment, it will lead to more and more repayments. Therefore, if things go on like this, it may lead to overdue situations because sometimes the payments are not paid.

3. It is not conducive to increasing the credit limit. If you want to increase the credit card limit, in addition to spending more money on the card, you also need to repay on time. Moreover, banks prefer customers who repay in full and handle installments appropriately. If the minimum balance is always Repayment is not conducive to credit card limit increases, and there is a possibility of the limit being reduced.

4. Make cardholders feel dependent. Some users feel that the minimum repayment on a credit card can alleviate the current repayment pressure, so they choose the minimum repayment every time. If things go on like this, the minimum repayment amount will continue to accumulate, which will make the snowball get bigger and bigger without you realizing it.