Yes.

If you only pay the minimum payment on a credit card, interest will accrue on the remaining balance. Because credit cards can only be interest-free if they are paid off in full within the specified repayment period, otherwise recurring interest will accrue. After that, interest will be calculated every day according to the daily interest rate of 0.05%, and compound interest will be calculated monthly until the cardholder pays off all the money.

For example, if a customer holds a Bank of Communications credit card, the billing date is the 18th of each month and the repayment date is the 7th of each month. During the period after July 7 and before July 18, the customer only made a purchase of 1,000 yuan on July 15. The total repayment shown on the bill issued on July 18 was That’s one thousand yuan, and the minimum repayment is one hundred yuan.

If the customer only repays 100 yuan on August 7, then the recurring interest generated by August 18 will be: 1000 × 0.05% × 23 (from July 15 to August 6 day) + (1000-100) × 0.05% × 12 (August 7 to August 18) = 16.9 yuan.

If the customer does not want to incur recurring interest, he or she must pay off the entire bill on time and in full before the repayment date (inclusive). However, if you really can't pay it back, you can make the minimum payment to avoid overdue payments; or you can also apply for bill installments.

Extended information: The minimum repayment refers to the minimum amount you should repay before the final repayment date after the credit card is issued. Based on the bill statistics, it is generally 5% to 10% of the bill. If you cannot enjoy the interest-free repayment treatment, you will be charged a low interest rate of 0.5% of the recurring interest. The full amount will be calculated from the day of consumption. No Interest-free period. The remaining unpaid amount and interest will be included in the next bill; interest will be charged on the minimum repayment in two installments.

Although it will not affect the People's Bank of China's credit report, it will have other impacts. The first and most direct one is the interest fee. If you make the minimum repayment, you will need to pay billing fees for the repayment amount. and interest, please note that there are two fees, and the interest payment is not calculated from the bill repayment date, but from the card payment date. For example, your credit card bill is on the 30th, and the card payment is on the 1st. Under normal circumstances, you repay The date is around the 20th of next month. If the minimum payment is made on the 20th, the interest needs to be calculated from the 1st, not the 20th of the next month, so 50 days of interest must be paid first. Not a small amount either.

A credit card is actually a financial consumption tool, which is more suitable for consumption. But if you use cash, the daily interest rate for credit card cash withdrawals is 0.05%, that is, the daily interest rate for borrowing 10,000 yuan is 5 yuan, and you also have to pay cash withdrawal fees, so the overall cost will be very high. Large purchases can be repaid in installments or with minimum repayments. However, no matter which repayment method is used, the calculation is based on equal principal and equal interest, and the interest is calculated repeatedly based on the total principal in each period. Moreover, there are no handling fees for credit card installments and early repayments. In this way, the annual interest rate of the credit card is actually not low at all.