The minimum repayment amount is the minimum amount that must be repaid in your current bill. If your repayment amount exceeds or is equal to the minimum repayment amount before the due repayment date, it can be counted as timely repayment, and the issuing bank will waive the late payment fee and keep your good credit record.
For the part exceeding the minimum repayment amount, if repayment is made within this repayment date, the bank will not charge cyclic interest. If you enter the next bill, you must calculate the cyclic interest.
The minimum repayment amount of a credit card is the minimum amount that the cardholder must repay before the monthly due repayment date stipulated by the issuing bank. The cardholder may not repay in full for the time being, but the repayment amount of each installment must not be lower than the minimum repayment amount.
Otherwise, you will not be able to maintain a good credit record. If the cardholder chooses the minimum repayment amount, he cannot enjoy the interest-free repayment period. All consumption in the current period shall be calculated and charged with interest from the bookkeeping date, with a daily charge of five ten thousandths, until all the arrears are paid off.
About the minimum repayment and installment payment.
Choose the lowest repayment: there will be recurring interest. Repaying the minimum repayment amount can maintain a good credit record, but the cardholder also needs to pay some interest. If you use the minimum credit card to repay, you have to pay five ten thousandths of interest every day and compound interest every month. In this way, the longer the arrears, the greater the repayment pressure.
Choose installment repayment: although the installment interest of the bill is exempted, there is still a certain handling fee. For example, if a customer spends 20,000 yuan on a credit card, he will repay it according to the minimum repayment amount every month, and the interest will be calculated in full according to 20,000 yuan, and the annual interest expenditure will be at least 3,650 yuan. If the bank pays by installment, 12 installment is one year, and the rate is 3% at a time, and the cost is only 600 yuan.
The choice of installment repayment or minimum repayment amount depends on the amount and cycle. If the funds can't be turned over for a while and can't be repaid in full in a short time, it is more cost-effective to choose the method of repayment by installments. Installment repayment is generally beneficial to cardholders who have a large amount and cannot repay in one lump sum for a long time.
If the bill amount is low and the consumption bill date is close to the final repayment date, it is more worry-free to choose the method of paying the minimum repayment amount first. Moreover, some banks stipulate that if customers want to end the installment payment in advance, they must pay off all the arrears in their accounts before they can repay the installment debt. Also, when applying for installment repayment, don't just know the proportion of the handling fee, and don't ignore the deduction method of the handling fee.