Is it cost-effective to pay in installments with a credit card?

This problem cannot be generalized and can be divided into the following two situations:

1. For users who are under temporary financial pressure, credit card installment payment is more cost-effective, and using credit card installment payment can alleviate the problem. Temporary financial pressure on users. However, there will be certain installment fees when choosing credit card installment payment. The specific fees will depend on how many installments the individual repays. In addition, users must repay on time after choosing installments to avoid affecting their personal credit score.

2. For users without financial pressure, credit card installment payment is not cost-effective, because installment payment will incur installment fees, which means that users have to spend more, so it is not cost-effective

Extended information:

The number of installments available for a credit card mainly depends on the regulations of the issuing bank and the type of installment business handled by the customer. However, the available installment ranges for most bank credit cards mainly include 3, 6, 9, 12, 18, and 24 installments; some bank credit cards can also be divided into 2 or 10 installments. Special installments, as well as the super long-term installment of 36 installments (for details, please call the customer service of the card-issuing bank, and it will be subject to the installment page).

When customers apply for credit card installments, they just need to choose the appropriate number of installments based on their own needs and repayment ability. However, everyone needs to note that the installment fee may also be different depending on the number of installments selected. Of course, generally the longer the credit card installment period, the more installment fees you have to pay.

It is recommended that customers do not always apply for long-term installments, so as not to make the bank think that the repayment ability is insufficient, which is not conducive to increasing the card limit. Usually, it is enough to choose the number of periods from 3 to 6. If you want a longer period, 12 periods is enough, and it does not need to be too long.

Credit card installments are not considered loans:

Whether it is credit card bill installments, consumption installments, or cash installments, they are all credit card business, not loans. In the personal credit report, it is also shown in the credit card record in the credit record, not in the loan record.

Some people may mistakenly think that cash installment is a loan, but it is not. For example, some cash installments will occupy the credit card consumption limit, which will not be recorded independently. Special cash installments that do not occupy the credit card consumption limit will open a separate account, but will also be reported as an electronic credit card on the personal credit report. in the form of a loan, rather than in the form of a loan.

Of course, whether it is a credit card installment or a loan, customers must remember to repay on time. Otherwise, once it is overdue, a bad credit record will be left in the personal credit report, and it will usually be retained for at least five years after the customer pays off the credit before it can be deleted. By then, whether it is a credit card overdue record or a loan overdue record, personal credit will be damaged.

What is the most cost-effective credit card installment? You must consider your income before making the installment.

Many people will be unable to repay on time after using credit cards. At this time, many people will use credit card installments. To repay the loan, what is the most cost-effective credit card installment? What aspects do you consider when choosing installments? Below I will give you a detailed introduction.

There is no optimal number of installments for credit card repayment. Of course, the fewer the number of installments a user chooses, the less the handling fee will be. However, when the cardholder chooses a smaller number of installments, the monthly repayment amount will increase. Therefore, when choosing the number of installments, you must ensure that you can repay the balance on time after applying for the installments.

When applying for credit card installment, different banks provide different installment fee rates. You can consult the bank before applying for installment. It should be noted that different banks may charge different installment fees. Most banks charge installment fees, but some banks charge them in one lump sum.

After applying for installment repayment with a credit card, you can repay in advance. However, the handling fees that have been charged when repaying in advance will not be refunded, and you can only save the uncharged handling fees. However, early repayment can release the credit card limit in advance, which is of great benefit for subsequent use of the credit card for consumption.

It should be noted that many amounts in credit card bills cannot be applied for installment, such as annual fees, revolving credit interest, liquidated damages, cash withdrawal principal, etc., and the minimum consumption of the bank must be met when applying for installment. If the amount does not meet the bank's requirements, the bank will refuse the installment. For example, many banks stipulate that the installment amount must be 500 yuan or more.

Be sure to repay on time after using your credit card to make purchases, and avoid overdue repayments. After all, penalty interest will accrue after overdue repayment. The longer the time, the greater the penalty interest. Moreover, after the overdue period, the bank will upload it to the credit report center. If the personal credit report becomes bad, it will affect the processing of various loans in the future. However, you should think about your repayment plan before using it. Generally, the monthly consumption amount does not exceed 50% of the monthly income.

Which credit card installment method is the most cost-effective?

Consumption installment is similar to bill installment, and the rates are similar. The expected annual interest rate is generally around 16%, which is much higher than the 7% rate claimed by the bank (0.66% per month).

What is the most cost-effective credit card installment?

The installment depends on the amount, so it is difficult to determine.

It is recommended that customers do not always apply for long-term installments, so as not to make the bank think that the repayment ability is insufficient, which is not conducive to increasing the card limit.

Usually it is enough to choose the number of installments from 3 to 6. If you want a longer installment, 12 installments are enough, and it does not have to be too long.

The number of installments available for a credit card mainly depends on the regulations of the card-issuing bank and the type of installment business handled by the customer. However, the available installment ranges for most bank credit cards mainly include 3, 6, 9, 12, 18, and 24 installments; some bank credit cards can also be divided into 2 or 10 installments. Special installments, as well as the super long-term installment of 36 installments (for details, please call the customer service of the card-issuing bank, and it will be subject to the installment page).

When customers apply for credit card installments, they just need to choose the appropriate number of installments based on their own needs and repayment ability. However, everyone needs to note that the installment fee may also be different depending on the number of installments selected. Of course, generally the longer the credit card installment period, the more installment fees you have to pay.

Credit cards, also called credit cards, are credit certificates issued by commercial banks or credit card companies to consumers with qualified credit. It takes the form of a card with the name of the issuing bank, validity period, number, cardholder name and other contents printed on the front, and a magnetic stripe and signature strip on the back. Consumers holding credit cards can shop or consume at specially appointed commercial service departments, and then the bank will make settlements with merchants and cardholders. Cardholders can overdraft within the prescribed limit.

Credit cards stipulated in the relevant laws of our country ("Interpretation of the Standing Committee of the National People's Congress on Relevant Credit Card Regulations") refer to credit cards issued by commercial banks or other financial institutions with the functions of consumption payment, credit loans, transfer settlement , cash deposit and withdrawal and other full or partial functions of the electronic payment card. On December 1, 2017, the "English Translation and Writing Standards in the Public Service Field" was officially implemented, stipulating that the standard English name of credit cards is CreditCard.

Credit card consumption is a non-cash transaction payment method. There is no need to pay cash when consumption, and repayment will be made on the billing date (BillingDate).

Credit cards are divided into credit cards and quasi-credit cards. Credit cards refer to credit cards in which the cardholder has a certain credit limit and can consume within the credit limit and then repay; quasi-credit card It refers to a quasi-credit card in which the cardholder deposits a certain amount of reserve fund as required. When the reserve account balance is insufficient to pay, the cardholder can overdraw within the specified credit limit. The so-called credit card generally refers to a credit card only.

Starting from January 1, 2021, the credit card overdraft interest rate will be determined independently by the card issuer and the cardholder through independent negotiation, and the upper and lower limit management of credit card overdraft interest rates will be cancelled. The daily interest rate is 0.7 times 5/10,000).

Credit card installment knowledge: How to make installments more cost-effective

Many friends now have a misunderstanding about the use of credit cards. They think that the credit card installment business is very good, so they often use credit card installments, but this is really true Okay? Do you know everything about credit card installments? Do you know how to make installments more cost-effective?

1. The most convenient installment - bill installment

This is the most convenient installment method. Basically, all card-issuing banks can support this method, and it is easy to apply. Users only need to submit an installment application to the card-issuing bank by phone or other methods after swiping the card and before the repayment date (ICBC), or after the bill date. However, it should be noted that the regulations of each bank are somewhat different, so when applying for a card, you must understand the specific installment details in detail.

The biggest trap of bill installment is that the bank claims to be interest-free without mentioning any handling fees. The longer the installment, the higher the handling fees.

2. Fee-free installment - mail-order installment

It means that the cardholder can choose from limited products in the bank's online installment mall. Then order through the online installment mall, call or fax the mail order installment application form, etc. to the bank for installment mail order. (2015 China CITIC Bank Credit Card Installment New Business Mail Order Mall Installment)

Mail order installment generally does not charge a handling fee regardless of the number of installments. However, due to the long ordering cycle (in many cases it will take more than 15 working days to get the product) and the relatively cumbersome return and exchange process, it is recommended to compare before purchasing.

3. Installment by credit card for shopping consumption - shopping mall installment

Also known as POS installment, it means that the cardholder goes to a shopping mall specially appointed by the bank to purchase goods and applies for installment to the credit card center through the designated POS machine. Payment can be made in installments. When checking out, if you hold a credit card that supports installment in the mall and indicate that you need to pay in installments, the cashier will follow the number of installments requested by the cardholder (such as 3 installments, 6 installments, 12 installments, etc., and a few malls support 24 installments). The charging rates for shopping mall installments vary from bank to bank.

In addition, as credit card segmentation becomes more and more sophisticated, installment methods such as car installments, auto insurance installments, cash installments, free installments, and revolving credit have emerged. In fact, credit card installment business is very common now, but not all consumption installments are cost-effective, and different installments require different handling fees. Moreover, the credit card installment business will have an impact on you increasing your credit card limit and improving your credit card level.

This is the end of the introduction on how to pay for credit card installments and whether credit card installments are more cost-effective or borrowing installments. I wonder if you found the information you need?