There are two kinds of overdraft interest.
1. Interest on overdraft consumption: The interest rate is 0.05% per day, but credit card overdraft consumption generally has an interest-free period of 25 to 56 days. Cardholders can enjoy this discount as long as they repay in full and on time; If you don't pay in full, the bank will calculate the interest from the date of your consumption until you pay the current bill.
2. Interest on overdraft withdrawal: The interest rate of this interest is 0.05% per day, but there is no interest-free period. Cardholders need to repay the withdrawal amount and interest on time. It can be seen that whether it is overdraft consumption or overdraft cash withdrawal, interest is very high. So think carefully and avoid failure.
What should I pay attention to when using credit cards?
1. Consumer self-control
Although it is a good thing that the credit card limit is too large, it will have disastrous consequences for those who have no self-control ability or can't correctly understand their financial situation. Generally speaking, the credit card limit you spend within 3 months should be lower than your salary. After all, the consumption ceiling of three months' salary is not too big. In case of accident or dismissal, you can also flexibly adjust the credit card bill to adapt to your income level and enhance your ability to resist risks.
After all, ordinary credit cards charge 0.05% interest every day and compound interest every month. The annual interest is as high as (1+0.05% * 30)12-1=19.56%, which is equivalent to usury!
Prepare carefully
In this era of consumerism, people's income is generally not high, but they want more and more things. Installment payment has become one of the choices of many people. You know, brushing 20 thousand cards at a time will be very stressful; If it is divided into 24 periods, as long as it is more than 800 points a month, the psychological pressure will be greatly reduced.
The former, due to excessive one-time consumption, will generally choose to pay off as soon as possible in order to alleviate their financial pressure, thus getting rid of the heavy financial pressure. Even, considering the economic pressure you need to bear, you directly refuse to consume.
Because the latter chooses to pay by installment, the financial pressure is not great, so it is easy to have the illusion that "I can bear more debts". Coupled with the long repayment period, it is easy to expand their debts and fall into a debt crisis.
3. Refuse to rob Peter to pay Paul.
After spending a lot, some people often use another bank's credit card to withdraw cash for repayment, so as to extend the repayment period. You know, bank information is very common. Soon, most banks will refuse to issue this person a credit card. In order to maintain repayment, many people have to find small loans to pay back their credit cards. However, because small loans have to pay a large part of interest, the income will be less and less, and it will gradually become more and more difficult to make a living, making cardholders feel at a loss and desperate. Don't add new debts before dealing with old debts, even if it will affect your quality of life.
4. General classification
Learning to check your personal credit report regularly can help you understand your debt situation and avoid the theft of credit card and personal ID card information. Generally speaking, there are too many credit cards, which is particularly confusing. If the repayment is easily overdue, or the minimum consumption limit of the bank is not reached, an annual credit card fee will be charged.