1. Different definitions.
Bill Installment: Credit card bill installment is a form of credit card installment payment. After using a credit card for consumption, cardholders can apply to the credit card center to return the consumption amount to the bank in installments.
Consumption installment: Credit card consumption installment means that after swiping the card for consumption, if the single consumption amount reaches the minimum consumption amount stipulated by the bank, the cardholder can apply to the bank to split the consumption into multiple repayments. payment. The bank will divide the consumption into multiple times and charge it to the cardholder's credit card account.
2. Different installment methods.
Bill installment: When making bill installment payment, the bank will evaluate the cardholder's credit limit and consumption record to determine the cardholder's credit status. Only if the evaluation result is good, the cardholder can successfully apply for installment payment. If the evaluation result is unsatisfactory, the bank may reject the installment request or be unable to provide the installment amount required by the cardholder.
Consumption installment: Consumer installment business usually has an interest-free repayment period, usually 50 days, but some banks such as Shanghai Bank may provide a 56-day interest-free period, while Minsheng Bank may provide a 51-day interest-free period. Interest-free period. If the cardholder fails to repay in time (overdue repayment) after the interest-free period, he will need to pay a certain late payment fee (5% of the unpaid amount) and interest (50,000% of the unpaid amount, and Calculated based on compound interest). Some banks may also set minimum limits on late fees.
3. The application process is different.
Bill installment: To make bill installment payment, you can usually apply for acceptance by calling the customer service center of the card-issuing bank or telephone banking. For example, ICBC cardholders can apply for installment payments at various ICBC branches, online banking, telephone banking and mobile banking. However, although various banks have launched bill installment services, this does not mean that every cardholder can make installment payments through credit cards.
Consumption installment: As for consumption installment, you can apply by phone or in person at a physical bank. Consumption installments are different from mail-order installments and merchant installments, because the cardholder does not consume at the card issuer's cooperative merchants (such as shopping malls or online merchants), which means that the goods purchased by the cardholder do not come from the merchants designated by the card issuer. In addition, consumption installment is a method of applying for installment payment after consumption has been completed. Therefore, care needs to be taken not to confuse consumption installments with other types of installments.
Will bill installments affect your credit score?
Paying bills in installments will not have an impact on an individual's credit record. Only late repayment will have a negative impact on the credit record.
Bill installment is a normal business of the bank and a method of credit card installment payment. As long as the amount consumed in advance is paid off as required within the specified time, it will not have any impact on your credit report. Only when there is overdue repayment will a negative record be recorded on an individual's credit record. Therefore, as long as repayments are made on time, bill installments will not have any negative impact on an individual's credit score.