How is credit card interest calculated?

Credit card interest should be considered in many situations. The following are the more common credit card interest calculation methods:

1. Credit card consumption interest

In After the bill date is generated, until the repayment date, no interest will be charged for on-time repayment.

If the amount is overdue within 15 days, the daily interest rate will be calculated as 0.05 (including the current day), if it is overdue for 15 days, the daily interest rate will be calculated as 0.1, and if it is overdue for 30 days, the daily interest rate will be calculated as 0.15.

2. Cash withdrawal interest

Starting from the date of cash withdrawal, interest will be charged at 0.5% of the daily interest rate, and compound interest will be calculated on a clear basis. At the same time, a certain amount will be charged for cash withdrawal. cash withdrawal fee.

3. Installment fee

Credit can also be repaid in installments. If you use a credit card for installment, we usually refer to the interest as the installment fee. The handling fee per installment = the total principal amount of the installment x the handling fee rate for each installment

The total handling fee for the installment = the handling fee for each installment >Credit card installment payment refers to a one-time payment from the card-issuing bank to the merchant when the cardholder uses a credit card to make a large purchase

The consumption funds for the goods (or services) purchased by the cardholder, and According to the cardholder's application, consumption funds are deducted from the cardholder's credit card account in installments, and the cardholder repays according to the monthly credit amount.

Most banks in China have card installment payment services. Installment payments are generally divided into shopping mall (POS) installments, "mail order installments" and bill installments through the Internet, mail, etc. depending on the occasion. .

1. Shopping mall installment

Also known as POS installment, it means that cardholders go to shopping places, such as "malls" where installment can be purchased. When checking out, please show a credit card that supports installment payment at the mall and indicate that you need to pay in installments. The cashier will swipe the card on a dedicated POS machine according to the number of issues required by the cardholder (such as 3 issues, 6 issues, 12 issues, etc., a few shopping malls support 24 issues).

Note: Cardholder identity verification is required when making installment purchases in shopping malls, so remember to bring your ID card. Shopping mall installments are generally free of charge for three installments. The rates for 6 and 12 periods vary from bank to bank. As long as the products for installment payment are products that are normally sold in the shopping mall, they can generally be paid in installments. In many cases, cardholders can also bundle multiple items together to check out and then make installments.

2. Mail order installment

It means that the cardholder receives the installment mail order catalog manual sent by the card-issuing bank (or the bank's online installment mall) and chooses from limited products. Then order through the online installment mall, call or fax the mail order installment application form, etc. to the bank for installment mail order. There is generally no handling fee for mail order installments regardless of the number of installments. However, due to the long ordering cycle (in many cases it will take more than 15 working days to get the product) and the relatively cumbersome return and exchange process, it is recommended to compare before purchasing.

How to calculate credit card interest

There is an interest-free period of 20-50 days for normal credit card consumption. If the bill is paid in full during the interest-free period, there will be no interest. Credit cards charge interest in accordance with the Central Bank's "Bank Card Business Management Measures". The interest is 0.05 per day, which is 18.25 per year.

01

What does the daily interest rate of 0.05 mean?

This represents five ten thousandths, which is 10,000, and 5 yuan of interest is charged per day. For 1,000, it is 0.5 yuan per day. So after a month like this, the 10,000 bill will be an interest of 150 yuan per pound.

If 5,000 has been repaid this month, how will the interest be calculated next month? Next month, the remaining unpaid portion will be calculated, that is, the unpaid portion of 50,000.05 = 2.5 yuan/day. That’s 75 yuan a month.

02

How to calculate interest on credit card installment?

There is no interest for credit card installments, but there will be handling fees, which are not low.

The installment handling fees of most banks are calculated based on the total installment amount, not the remaining principal, so don’t subconsciously think it’s cheap when you see a lower handling fee. The actual interest rate for installments is approximately twice the bank’s advertised interest rate.

03

How to calculate the handling fee for credit card cash withdrawal?

Generally speaking, most of the handling fees for bank credit card cash withdrawals range from 1 to 3% of the cash withdrawal amount. The handling fee for credit card cash withdrawals of 10,000 yuan is between 100 yuan and 300 yuan. Of course, there are also some credit card cash withdrawals that charge per transaction.

In addition, there is no interest-free period for credit card cash withdrawals, so not only does a credit card cash withdrawal charge a handling fee, but the bank will also charge you interest based on a certain interest rate on the amount you withdraw. Most banks will charge you interest at a daily interest rate of 0.05%. The interest rate for withdrawing 10,000 yuan a day is 5 yuan, and compound interest is calculated on a monthly basis.

04

Are credit card interest rates and loan ratios high or low?

Credit cards sometimes give you a daily interest rate when charging. Many friends who don’t know the details often don’t know whether it is really acceptable when looking at such a low interest rate. In fact, the daily interest rate only needs to be multiplied by 365 can calculate your annual interest rate. The general situation is as follows.

When the credit card chooses the minimum repayment or is overdue, interest will be charged at a daily interest rate of 0.5%. The daily interest rate converted to the annual interest rate is 0.05365=18.25, and the annual interest rate of bank loans is around 5, so the interest rate of the credit card is actually very high. If you do not enjoy the interest-free service of the credit card, you will need to pay high interest fees. of.

However, compared with online loan products, the interest rates of most online loan products are 18-36, so even if the credit card charges interest, it is within a reasonable range. Once interest is charged on a credit card, the cost of using it will be very high. Please do not overdraw your money to avoid excessive debt.

How is credit card interest calculated?

Credit card interest is generally calculated at 50,000 per day.

1. Credit card cash withdrawal:

1. Credit card overdraft withdrawal:

A handling fee: It depends on the regulations of each bank. For example, the handling fee for Ping An credit card cash withdrawal is 2.5 , minimum 25 yuan/transaction; CCB credit card domestically charged 0.5 of the cash withdrawal amount, minimum RMB 2/transaction, maximum 100 yuan/transaction; China Merchants Bank credit card domestically charged cash withdrawal amount 1, minimum RMB 10/transaction;

B Interest: Calculated based on daily interest rate of 5/10,000.

2. Cash withdrawal for credit card overpayment: Some banks need to charge a handling fee, and some do not. For example, the handling fee of China Merchants Bank is 0.5 of the amount withdrawn, and the minimum charge is ￥5 yuan or $1 USD.

2. Use credit cards to make purchases at POS machines:

1. Pay the full amount on time, interest-free;

2. Pay the minimum payment on time, according to A daily interest of 0.05% will be charged;

3. For overdue repayment, in addition to the above-mentioned interest, there will also be late fees.

How to calculate credit card interest?

Credit card interest calculation method:

1. Credit cards will have an interest-free period. If you repay before the repayment date, no interest will accrue, and the same applies if you repay the installments on time. There is a handling fee, but if it is overdue, there will be interest (and it is still high interest).

2. The way banks charge overdue interest on credit cards is based on the total amount of the monthly bill, which is called "full interest calculation" rather than on the amount of the unpaid portion. Full interest, also called full penalty interest, means that if you fail to repay in full by the latest repayment date, even if the difference is one penny, you will be charged 0.5% of the full amount of the current bill. Daily interest is calculated, and compound interest is calculated on a monthly basis, which can also be calculated as "interest compounding".

3. Except for Industrial and Commercial Bank of China, Agricultural Bank of China and Shanghai Pudong Development Bank, which adopt the method of calculating interest on the unpaid portion, other banks adopt the method of calculating interest on the full amount. ICBC is the first bank to cancel the full penalty interest on credit cards.

(1) Pudong Development Zone

Interest is calculated in installments, with an interest of 0.05%. Liquidated damages will be charged based on the unpaid portion of 5 of the minimum repayment amount. If the minimum repayment amount is 10 No penalty will be charged if the amount is less than 1 yuan, and there is no upper limit.

(2) ICBC

Interest will be calculated on the unpaid portion. If the minimum repayment amount is not repaid before the due repayment date (inclusive), it will be regarded as overdue and the minimum repayment amount will be charged. 5% of the unpaid portion of the repayment amount shall be paid as liquidated damages.

(3) Agricultural Bank of China

Interest is calculated in installments, interest is 0.5%, liquidated damages, 5% of the unpaid minimum repayment amount, credit report: as long as enough is paid, the minimum The repayment amount will not affect your credit score.

How to calculate interest on credit cards.

Generally, the daily interest rate for credit card interest is 0.05%, which means that the monthly interest on 10,000 yuan is about 150 yuan.

1. Credit cards are generally repaid on time and there is no interest for full repayment. In addition, overdraft cash withdrawals also charge a certain amount of interest and handling fees. The interest is calculated on a daily basis, which is also very high. It starts from the day when the cash is withdrawn. Interest will be calculated from now on, and the handling fee will be charged at 0.5 (minimum 2 yuan/transaction). You can control your credit card consumption and repay it on time every month. The credit card will always be interest-free. You only need to refund the bank amount you spent. If you overdue the payment without interest or fail to repay in full, the bank will charge interest.

2. Credit card interest is calculated from the date of purchase. Interest is charged at 5 per day and compounded monthly. That is to say, if the interest is not paid this month, interest will also accumulate next month. In addition to interest, using a credit card and not repaying on time will also incur some other fees, such as late payment fees, card holding fees, etc. People should pay attention to the cost standards of credit cards when using them. Credit cards are generally repaid on time, and full repayment is interest-free. You can control your credit card consumption every month and repay it on time. The credit card can always be interest-free. Only the amount you spent will be refunded to the bank without interest.

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Special note: withdraw the full amount as soon as possible after the limit is exceeded, because risk control is dynamic.

It is best to put forward all the suggestions you have. The risk control system will mistakenly think that you don’t need the funds very much, causing the withdrawal to fail. It is safer to raise at least 60. Early settlement and repayment is supported after the first installment.

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This ends the introduction on how to deduct interest on credit cards and how to deduct bank interest. I wonder if you have found the information you need?