The complexity of credit card repayments can cause your bill to increase instead of decreasing. First of all, many banks set a minimum repayment amount of only 10% of the total bill, which may seem easy, but in fact it may lead to interest accumulation. If you repay only according to this standard, the unpaid portion will no longer enjoy the interest-free period, but will accrue interest at a daily interest rate of 0.5% from the consumption date. The longer the repayment time, the greater the interest expense.

Secondly, some cardholders may be confused about the repayment date and billing date. They may think that repayment is enough, but in fact, part of the payment may be regarded as overpayment rather than repayment of the current bill. Once overdue, additional interest and liquidated damages will accrue. Even if automatic repayment is enabled, if the balance of the repayment card is insufficient and the bank deduction fails, the consequences will be equally serious. Interest and penalties will follow after the due date.

Furthermore, the understanding of the grace period is often wrong. Many cardholders assume that all credit cards have a grace period, but this is not the case. For example, the Industrial and Commercial Bank of China may not have a grace period. If the repayment is made within what it thinks is the grace period, it is actually overdue, which will further increase the cost of repayment. Therefore, it is crucial to correctly understand and master credit card repayment rules to avoid unnecessary financial burdens.