1. The minimum repayment amount of a credit card will generate interest charges. After the cardholder has repaid the minimum repayment amount, the bank will charge all consumption amounts in the current bill starting from the date when the cardholder’s consumption is recorded. Interest accrued interest charges are calculated as monthly compound interest based on 0.05 of the consumption amount every day. Moreover, under this repayment method, as long as the remaining balance is not repaid, new interest charges will be incurred every day. The longer the time goes by, the higher the interest charges the cardholder will have to bear.

2. Therefore, before consuming, you must consider your own repayment ability. If you must use the minimum repayment function, it is better to choose microfinance products provided by some banks, such as Weilidai, which is The microfinance products of WeBank, the first Internet bank in China, have daily interest rates between 0.03 and 0.05. You can borrow and repay at any time, and there are no handling fees for early repayment.

3.:

Why do I pay more and more on credit cards?

1. Minimum repayment

The minimum repayment of many banks is 10% of the monthly bill. For example, if the debt is 1,000 yuan, repaying 100 yuan will be regarded as normal repayment and will not be considered overdue.

2. Mistakenly thinking that the payment has been made

For example, some cardholders confuse the billing date and the repayment date of their credit card. As a result, they think that the payment has been made, but they do not know that the payment has not been made. The money returned can only be counted as overpayment, not the current bill balance. Or if the automatic repayment function is enabled, but the balance in the repayment card is insufficient and the bank fails to deduct the money, and there is no manual repayment, it will definitely be overdue. Overdue interest will accrue and liquidated damages will be charged.

3. Mistakenly believe that there is a grace period

Many cardholders believe that all credit cards have a grace period, so they often do not repay on the last payment date, but postpone it for a few days. Who knows that some banks have no grace period for credit cards at all, such as Industrial and Commercial Bank of China?

4. The repayment did not arrive in time

Although some cardholders repaid the loan on the last repayment day, they were not sure because they transferred the repayment through a third-party platform. Regardless of the time of payment, it is possible that the payment will be overdue due to delayed arrival, and the amount of repayment will also increase.