How to calculate overdue interest and liquidated damages on credit cards

1. Calculation of interest: 1. If there is an agreement, the agreement shall follow, but it cannot exceed the one-year loan period when the contract is established. Four times the market quoted interest rate. 2. If there is no agreement or the agreement is unclear, there will be no overdue interest. Second, the calculation of liquidated damages: 1. If there is an agreement, the agreement shall prevail, but it shall not exceed 30% of the actual loss caused by the breach of contract. 2. If there is no agreement, the actual losses caused by the breach of contract shall prevail. Article 577 of the Civil Code: If a party fails to perform its contractual obligations or performs its contractual obligations inconsistently with the agreement, it shall bear liability for breach of contract such as continuing to perform, taking remedial measures, or compensating for losses.

How to calculate credit card default penalties and interest? Take an example and you will know at a glance

We all know that when a credit card is overdue, there will be two fees, namely liquidated damages and overdue interest. These two fees are different concepts, with different collection methods and interest calculation methods. Not the same. In order to give everyone an in-depth understanding of credit card default fees and overdue interest, the following will introduce the algorithms of these two fees respectively.

1. How to calculate credit card penalty?

Generally speaking, a credit card is not considered overdue as long as the minimum repayment amount is paid on the final payment date. If the repayment amount is lower than the minimum repayment amount, then the full amount will be charged. Charge a penalty, also known as liquidated damages.

The standard for liquidated damages is 5% of the unpaid portion of the minimum repayment, but some banks also set upper and lower limits. For example, the cap is 500 yuan for ICBC; the lower limit is 1 yuan for Agricultural Bank of China, and 10 yuan for China Merchants Bank. CITIC/Industrial/Guangfa/Ping An is 20 yuan.

2. How to calculate credit card interest?

If the credit card is repaid during the interest-free period, no interest will accrue. After the expiration date, the single consumption of this month will be regarded as the principal, and a daily interest rate of 0.05% will be calculated from the day of consumption. Interest is compounded monthly until all is paid off.

Give an example to introduce the algorithm of credit card default penalty and interest respectively.

Assume that Little A’s credit card bill date is the 17th of each month, and the final repayment date is the 7th of each month. He consumed 2,000 yuan on March 18, 1,000 yuan on March 22, and 500 yuan on April 14. The total amount owed on the bill issued on April 17 was 2,500 yuan, and the minimum repayment amount was 250 yuan. , but he didn’t pay back a cent and didn’t pay back until April 20.

1) Liquidated damages = the unpaid minimum payment amount of the bill × 5%, that is, you have to pay 250 × 5% = yuan;

2) Interest = the bill amount × the number of days of use (March 18th ~ April 20th) × Since 3 purchases were made, the interest is calculated by segment:

Interest generated from the purchase on March 18th = 2000×34 (March 18th ~April 20) × yuan;

Interest generated from consumption on March 22 = 1000 × 29 (March 22 ~ April 20) × yuan;

34 Interest generated from consumption on the 14th of the month = 500×7 (April 14th to April 20th)×yuan.

The total *** interest to be paid is 34 yuan.

Total *** overdue fees to be paid = liquidated damages, penalty interest = yuan.

Finally, I would like to remind everyone that if the current liquidated damages and penalty interest are not paid off, they will be rolled over to the next bill as principal and interest will continue to be calculated. This is the so-called interest compounding. .

Overdue credit card interest

1. How to calculate the interest after the credit card is overdue

If the credit card is overdue for repayment, the interest will be divided into two situations:

< p>1. The overdue interest on bank credit cards is generally 0.05% per day. The interest is calculated at an interest rate of 0.05% per day, and then compound interest is charged at an interest rate of 0.5% per day until the cardholder pays off the balance in full.

2. Interest will be accrued on the full amount of the overdue balance, and compound interest will be charged on a monthly basis until the cardholder repays it in full. Currently, if a credit card is overdue, the bank will issue agreed interest for 5 months based on the cardholder's failure to repay the minimum repayment amount for more than 3 months.

2. What to do if your credit card is overdue

1. Quick remedy for overdue credit card

(1) If you encounter an overdue credit card, you should immediately call the bank service number and explain that it is not the case. If there is malicious arrears, please pay the arrears in a timely manner.

(2) Under normal circumstances, banks will have a 3-day grace period. Once cardholders find that their credit card is overdue, please handle it immediately to avoid leaving bad records.

2. How to deal with bad records

(1) If the cardholder has left bad records in the bank, do not rush to cancel the card after paying the outstanding balance and explaining the situation. , once the card is canceled, the personal credit record cannot be updated, and the bad record will always be recorded in the bank, causing serious consequences.

(2) The correct approach is to continue to use this credit card and maintain a good credit record for at least 2 years. It will basically not have an impact on personal mortgages, loans, credit card applications and other businesses.

That’s it for the introduction of how to calculate credit card default interest.