If you use a credit card to make purchases, if the funds cannot be turned over for a while, using the minimum repayment will not directly affect your credit score. Credit card is a key factor in evaluating a person's credit, as long as you ensure that you can repay the minimum payment The amount will not affect your credit score. Although it will not affect your credit report, the longer the period, the higher the interest charged by the bank, and the credit card limit will not be increased, affecting the credit card usage limit. Some banks will also reduce the credit limit for credit cards that continue to make minimum payments. deal with.

The minimum repayment amount of a credit card means that if the cardholder is unable to repay the entire amount due before the due payment date (inclusive), he can repay according to the minimum repayment amount stipulated by the card issuer, but he will not be able to enjoy Interest-free repayment period. Minimum repayment amount = the cumulative outstanding portion of the last minimum repayment amount, the outstanding portion of the current month’s cash withdrawal and transfer loans, the current month’s over-limit consumer loan, and the outstanding portion of all consumer loans within the limit × 10. The actual amount is based on the minimum credit card repayment amount shown on the credit card statement.

Cardholders who choose the minimum credit card repayment amount can be exempted from overdue fines caused by failure to repay in full and on time. It will not affect their personal credit and can continue to enjoy the credit card overdraft limit.

The adverse effects of minimum credit card payments.

1. Interest accrues

For cardholders who repay the minimum repayment amount, the card issuer will charge a daily interest rate of the unpaid portion from the bank account opening date to the repayment date. 0.05 is charged as loan interest, which will be compounded on a monthly basis. If the cardholder's monthly repayment is lower than the minimum repayment, in addition to interest, the cardholder shall also pay a late payment fee of 5% of the unpaid portion of the minimum repayment.

2. Overdue risk

The cumulative minimum repayment will lead to a larger amount of repayment, which may lead to overdue payment.

3. It is not conducive to increasing the credit card limit

Increasing the credit card limit requires more card purchases and full repayment on time. If you keep making the minimum repayments, there is a risk of being reduced.