How much is the overdue interest on credit cards? How is overdue interest on credit cards calculated?

Overdue interest on credit cards has always attracted much attention. Many people want to know how overdue interest on credit cards is calculated. Credit cards usually have an interest-free period ranging from 20 to 50 days, but if the cardholder fails to repay the bill on time during this period, the bank will charge additional interest on the overdue balance. There are two ways to calculate interest on credit cards, one is full interest calculation, and the other is segmented interest calculation.

1. Full interest calculation:

Also known as full penalty interest, it means that the cardholder fails to repay the entire debt on the due date, that is, from From the date of consumption to the date of full repayment, recurring interest will be calculated at 50,000 per day.

The credit cards of many banks such as China Construction Bank, Industrial and Commercial Bank of China, Hua Xia Bank, China Merchants Bank, China Guangfa Bank, and China CITIC Bank use the full penalty interest calculation method.

2. Calculation of interest in installments:

That is, interest is calculated only on the overdue portion. The calculation method is also from the date of consumption to the date of repayment in full, on a per-unit basis. The recurring interest is calculated at 5/10,000 per day.

Only three banks in the market, Industrial and Commercial Bank of China, Agricultural Bank of China and Shanghai Pudong Development Bank, implement segmented interest calculation.

In addition to penalty interest, overdue credit cards will also be charged liquidated damages

In terms of overdue liquidated damages, in addition to ICBC charging 10% of the minimum repayment amount, China Guangfa Bank charges the lowest 10% of the unpaid portion of the repayment amount, and other banks charge liquidated damages based on 5% of the minimum unpaid portion of the repayment amount.

In addition, many banks have also set collection limits for the collection of liquidated damages. Among them, the minimum collection limit for liquidated damages of China CITIC Bank, Industrial Bank, and China Guangfa Bank is 20 yuan. This means that even if the cardholder's actual overdue penalty is 5 yuan, a minimum penalty fee of 20 yuan will be charged.

Reminder, overdue credit cards will not only charge high penalty interest, but also charge liquidated damages. More importantly, it will also affect personal credit, making it difficult to handle bank-related business in the future, so everyone must Develop a good habit of repaying your loans on time.

How to calculate overdue interest on credit cards

If the credit card is overdue, the bank will calculate compound interest at a daily interest rate of 0.05% from the date of consumption.

The emergence of credit cards has provided people with more conveniences. Cardholders can use credit cards to overdraft consumption, and banks provide credit card users with an interest-free period for repayment, as long as they are paid off within the specified repayment period. If you owe money, you don't need to pay any interest.

Therefore, credit card consumption is currently the preferred consumption method for many young people. However, credit cards are not interest-free at all times.

Cardholders need to pay credit card interest in the following situations:

1. Withdraw cash

Credit card overdraft purchases can enjoy an interest-free period, but cash withdrawals are not available. During the interest-free period, generally from the day the cardholder withdraws cash, the bank will charge cash withdrawal interest at a daily interest rate of 0.05%. For example, if a cash withdrawal of 100 million is made, the interest per day will be 5 yuan.

In addition to interest, banks will also charge cash withdrawal fees. Different banks have different fee standards, which are generally 1%-3% of the cash withdrawal amount. There are minimum and maximum fee limits;

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2. Installment repayment

Instalment repayment is a credit card repayment method that many cardholders will encounter. When users use credit cards to make purchases, if they cannot repay within the specified time, If you pay off the debt within the time limit, you can apply for installments to ease the repayment pressure.

You do not need to pay interest in installments, but you need to pay handling fees; different banks have different handling fee standards;

3. Minimum repayment

When the cardholder cannot When paying off the debt in full, in order to avoid overdue payments, in addition to installments, you can also repay the minimum repayment amount. Generally, the minimum repayment amount is 10% of the amount owed. For example, if the debt is 2,000 yuan, then the minimum repayment amount is 200 yuan.

The minimum repayment cannot enjoy the interest-free period. All transactions on the current bill will be calculated with recurring interest at a daily interest rate of 0.05% until the user pays off the balance.

4. Credit card overdue interest

If the cardholder is overdue when using the credit card, the bank will charge overdue interest to the overdue user. Currently, the overdue interest rate of each bank is It is calculated based on the daily interest rate of 0.05%.

Credit card overdue interest = 0.05% of the amount consumed. The number of days the credit card is overdue is calculated from the date of consumption. Overdue interest is calculated based on compound interest, which is what everyone calls interest compounding. Interest does not stop accruing until the borrower pays off the balance in full.

How much interest is charged on a credit card that is overdue for one day?

Credit cards generally have a 30-day interest-free period. As long as consumers pay off the balance within the interest-free period, no interest will be charged. If a consumer is overdue, interest is generally calculated at a daily interest rate of 0.05%. If the consumer is overdue for more than 30 days, some banks will calculate interest at a daily interest rate of 0.1%.

If a consumer uses a credit card to spend 10,000 yuan overdue, the interest that needs to be paid every day is: 100000.05% = 5 yuan, which is 150 yuan per month (calculated as 30 days). In general, The interest that needs to be paid is very high, so it is recommended not to be overdue easily.

Take China Merchants Bank Credit Card as an example:

1. When the credit card bill is not repaid in full and on time, recurring interest will accrue: interest is calculated based on each purchase in the bill. Interest is calculated at 0.05% per day starting from the consumption recording date (generally the second day of the consumption date) until the transaction is paid off.

The corresponding annual interest rate upper limit is 18.25%, and the lower limit is 12.775%. (Due to factors such as different number of days in the month and different repayment situations, the actual annualized interest rate may be different from the above-mentioned annualized interest rate.)

2. Cash advances do not enjoy interest-free repayment. From the day the cash advance is processed to the date of repayment, interest will be charged at a daily rate of 0.5%, and compound interest will be charged on a monthly basis. The corresponding annual interest rate upper limit is 18.25% and the lower limit is 12.775%.

(Due to the different number of days in the month, different repayment situations and other factors, the actual annualized interest rate may be different from the above-mentioned annualized interest rate.)

Notes on using credit cards:< /p>

1. Do not easily disclose personal information to others, including your ID number, bank code and other information, and do not give your bank card or credit card to others. If you have any doubts and need to report a crime, please go to a bank or other financial department for consultation in person or report the crime to the local public security agency. Do not call the phone number provided by the suspect to report the crime.

2. Pay attention to safe use of online banking. Install necessary anti-virus, anti-Trojan software and online banking security controls, make sure you are logging into a real bank website, do not easily accept unfamiliar files, and do not easily use other people's computers to log into online banking.

3. Be vigilant when using self-service banking. At present, the doors of self-service banks have been gradually transformed into button-opening ones. When withdrawing money from self-service banks, if you find suspicious devices or prompt messages such as "Press password to confirm" at the entrance of self-service banks, do not swipe your card or enter password, and promptly Report to banks and public security agencies.

4. Be careful to separate the card and ID card. Many people keep their ID cards and bank cards together in life. Once lost or stolen, the cardholder's funds are highly likely to be lost.

5. When swiping a credit card for consumption, you must confirm whether it is a UnionPay POS machine. After swiping the card, you must sign the shopping settlement statement. At the same time, you must also pay attention to whether there are duplicate problems and prevent the returned bank card from being used. Transfer package. In addition, the signature style should be as consistent as possible with the signature on the card.

How is interest calculated for overdue credit cards?

1. A credit card is a credit certificate issued by a commercial bank or credit card company to consumers with qualified credit.

2. The form of a credit card is a card with the name of the issuing bank, validity period, serial number and cardholder’s name printed on the front. 1. Consumers holding credit cards can shop or consume in specialized commercial service departments, and then the bank settles with merchants and cardholders, and cardholders can overdraft within the prescribed limit.

Third, the earliest credit card appeared at the end of the 19th century. In the 1980s, the British clothing industry developed so-called credit cards, and the travel and business sectors followed suit. But at that time, cards could only be used for short-term business credit loans, and the money still had to be repaid as needed, so there were no long-term defaults and no credit limit. In the 1950s, McNamara, a credit expert in Manhattan, was having dinner in a restaurant. Because he didn't bring enough money, he had to ask his wife to send it over. This made him feel very embarrassed, so he organized "DinersClub" (English: DinersClub).

Members bring a meal card to 27 designated restaurants where they can collect their fees instead of paying cash. This is the earliest credit card. Franklin National Bank was the first bank to issue a credit card, and other U.S. banks followed suit.

It is said that one day, American businessman Frank McNamara entertained guests in a hotel in New York. After the meal, he found that he had forgotten his wallet. He was deeply embarrassed and had to call his wife to bring cash to the hotel to settle the bill. So McNamara came up with the idea of ??starting a credit card company. In the spring of 1950, McNamara and his friend Schneider invested US$10,000 to establish Diners Club in New York, the predecessor of Diners Club. Laidashe provides members with a card that can prove their identity and payment ability. Members can use the card to record accounts and make purchases. This kind of credit card that does not require a bank to handle is still a commercial credit card.

4. Another way to say credit card is that credit card is a non-cash transaction payment method and a simple credit service. Credit cards are generally plastic cards with a length of 85.60mm, a width of 53.98mm, and a thickness of 1mm. They are issued to cardholders by banks or credit card companies based on the user's creditworthiness and financial resources. Cardholders do not have to pay cash when using a credit card, and repayment is made on the billing day. Except for some credit cards that are combined with debit cards, general credit cards are different from debit cards and ATM cards in that credit cards will not directly debit the user's account. In February 2012, the bank confirmed that credit cards without passwords are more secure, and if stolen, they will share the responsibility with the bank. Enjoy the 25-56 days (or 20-50 days) interest-free period. Credit card consumption enjoys an interest-free period, and the bill amount is paid off before the due payment date without incurring any fees. There is no interest-free repayment period for cash withdrawals. From the date of cash withdrawal, interest of 0.5% will be charged every day, and the bank will also charge a certain percentage of cash withdrawal fees.

This concludes the introduction on how to calculate overdue interest on credit cards and how to calculate overdue interest on Hexin credit cards. Have you found the information you need?