Credit card installment is one of the functions of credit card. Banks often promote bill installment. According to Jintou Credit Card, I understand that China Merchants Bank is currently engaged in credit card bill installment activities. Most people may have heard of credit card installment, but how much do we really know?

1. Types of installments

In addition to cash installments, bill installments, and credit card purchase installments, there are also car installments, shopping mall installments, contract installments, special installments, etc. Students can Choose different installment types under different circumstances and compare which one is more cost-effective. Let me give you a brief introduction to the following types of installments.

Cash installment

Cash installment is also called cash installment. It is applied by the credit card holder or the card issuer actively invites the card holder to apply. The card holder will An installment method in which the credit limit on a person's credit card is converted into cash, transferred to a designated debit card (our bank or another bank), and divided into designated monthly installments for repayment.

To put it simply, cash installment means borrowing cash from the bank and then repaying it in installments. Of course, the interest you pay to the bank cannot be less.

Bill Installment

Credit card bill installment means that the credit card holder requests the credit card center to return the consumption amount to the bank in installments after using the credit card to swipe the card for consumption. Credit card bill installment payment is the simplest method of installment payment. You only need to call the bank's credit card center to apply for installment payment from the bill date of the card consumption to the due payment date. You can also apply for installment payment on your credit card. Apply directly on the APP.

In layman's terms, credit card bill installment means that when you can't pay off your credit card, you can use the credit card bill installment to relieve the pressure of repayment. But remember, installment repayment requires corresponding handling fees and interest. This fee is quite spectacular. You must know that recent financial reports of the banking industry show that credit card revenue accounts for nearly 30% of the bank's total profits. Of course, whether or not to carry out credit card bill installments depends on personal circumstances. While we enjoy the convenience brought by credit cards, we must also make some money for the bank appropriately.

Shopping Installment

Nowadays, many credit cards have their own online malls. There are also quite a variety of products in the credit card malls. The prices in the credit card malls are basically the same as the market prices. However, it One advantage is that you can purchase goods in interest-free installments, up to 24 installments.

In layman's terms, we go to the credit card's own online mall to purchase products, but we can pay the cost of purchasing the products to the credit card mall in installments.

Shopping mall installment

Also known as POS installment, it means that cardholders go to shopping places and make purchases at "malls" where installment can be carried out. When checking out, please show the shopping mall's credit card that supports installment payment and indicate that you need to pay in installments. Then the cashier will swipe the card on a dedicated POS machine according to the number of issues required by the cardholder (such as 3 issues, 6 issues, 12 issues, etc., a few shopping malls support 24 issues).

Note: Cardholder identity verification is required when doing shopping mall installments, so remember to bring your ID card.

Shopping mall installments are generally free of charge for three installments. The rates for 6 and 12 periods vary from bank to bank. Installment products can generally be purchased as long as they are normally sold in the shopping mall. In many cases, cardholders can also bundle multiple items together at checkout and then make installment payments.

2. The annual interest rate of the bill installment fee is as high as 15

I bought a computer for 12,000 yuan and paid it off in 12 months, with a monthly payment of 1,000 yuan. Assuming that the handling fee is 0.6, the monthly handling fee is 12000*0.6=72 yuan. If you pay it back in 12 months, you will have to pay an extra 864 yuan, and the annual interest rate is 7.2.

However, the actual interest rate is much higher than 7.2. Since I am repaying the bank every month, the installment repayment fee has always remained the same: I owed the bank 12,000 yuan in the first month, and the handling fee It was 72 yuan. In the last month, I only owed 1,000 yuan, but the handling fee was still 72 yuan! On average throughout the year, my annualized interest rate on the handling fee was as high as 15!

3. Early repayment procedure The fee is collected correctly

If the handling fee and interest are so high, then I will not pay the remaining balance in installments. If I pay off the balance in one go, will I stop charging it? Most banks stipulate that credit cards Once the bill is installmentd, if you pay the installment fee on a monthly basis, even if you repay the loan in advance, you still need to pay the fee for the remaining months.

4. The temporary quota cannot be divided into installments

The temporary quota given to you by the bank is only temporary, and it will definitely be withdrawn when it expires. Therefore, the temporary limit must be paid off in full before expiration, and bill installments are not supported.

Reminder:

1. Before choosing installment repayment, you must first carefully read the relevant details and consult the customer service hotline in detail, then comprehensively compare the number of installments and rates, and finally make the final decision. A choice that saves money and worry.

2. Mail order installments through bank malls often have fee-free discounts, but the price is slightly higher than the market price. Choose a discount based on comparative analysis of the actual situation.

3. Be sure to control your consumption desires and don’t fall into a situation where you can’t afford it just for the sake of cheapness. Although the installment doesn’t feel like much, it still adds up to a lot. Don’t use installment to numb yourself, thinking that it costs nothing. In fact, it still costs you money.