Credit card: Credit card, also called credit card, is a credit certificate issued by commercial banks or credit card companies to eligible consumers. It is a card with name, expiration date, number and cardholder's name printed on the front, and a magnetic stripe and signature strip on the back. Consumers with credit cards can go to specialized commercial service departments for shopping or spending, and then the bank will settle accounts with merchants and cardholders, and cardholders can overdraw within the prescribed limits.
First, the advantages and disadvantages of credit card installment repayment
1, which has the advantage that the repayment pressure of users in each installment is less, and it is not easy to cause overdue;
2. The disadvantage is that users need to pay a certain installment fee, which will have a certain impact on the subsequent credit business. After the installment, financial institutions will doubt the repayment ability of users.
Therefore, although credit cards have installment business, users are not advised to apply for credit card installment frequently if they want to withdraw cash quickly.
2. Which is more cost-effective, credit card installment repayment or minimum repayment amount?
1, installment repayment: installment repayment is interest-free and requires a handling fee, and the handling fee rates of different banks vary greatly. In most banks, the fee for installment payment is determined according to the term. The longer the term, the higher the fee standard.
2. Minimum repayment amount: the minimum repayment amount is 65,438+00% of the total consumption. If you repay according to the minimum repayment amount given by the bank, you can maintain a good credit record. The bank stipulates that from the date when the consumption is recorded in the account, interest will be charged at the daily rate of five ten thousandths of the total consumption, and compound interest will be calculated on a monthly basis, and interest will still be calculated according to the total consumption.
If the amount owed is large and cannot be repaid in a short period of time, it is more cost-effective to choose installment repayment; If the amount owed is small and can be repaid in a short time, it is more cost-effective to choose the minimum repayment amount.
3. Credit cards can be divided into credit cards and quasi-credit cards.
Credit card. That is, when the issuing bank provides bank credit, it overdraws first, and then repays or pays in installments. Most of these cards are used for international circulation. In other words, the way to allow cardholders to pay off their credit card accounts is "consume first, then deposit". Most of these cards are used for international circulation.
Quasi-credit card It is a credit card issued by a bank, which deposits first and then consumes. When applying for a credit card, the cardholder needs to deposit a certain amount of money in the issuing bank in advance as a backup. The cardholder needs to use the card on the basis of the deposit balance, and generally no overdraft is allowed.