First of all, credit card overdue penalty is set by banks to prevent customers from abusing credit and reduce risks. Overdue repayment will lead to the break of the bank's capital chain, interest loss and increased risk management costs, and banks need to make up for the losses through overdue liquidated damages.
Secondly, the high setting of overdue penalty can also play a warning role, prompting customers to repay on time. High liquidated damages give customers strong economic pressure, remind them to fulfill their repayment obligations in time and avoid further debt expansion.
In addition, the setting of overdue penalty is also related to the market competition environment. Banks determine the amount of overdue fees according to market demand, competitive situation and operating costs in order to maintain their relative competitive advantage.
To sum up, the penalty of one day 100 for overdue repayment of credit cards is to make up for the financial losses and risk management costs caused by overdue repayment, and to encourage customers to repay on time through high fines. In addition, the market competition environment is also one of the factors that determine the amount of overdue fees.
Extended data:
Credit card overdue penalty is different in different banks and different credit card products. Please refer to the relevant regulations or agreements of various banks for specific standards. Cardholders should understand and abide by the relevant terms when handling credit cards to avoid unnecessary economic losses and credit damage. If in doubt, it is recommended to consult the bank or relevant professional institutions.