Credit cards will have an interest-free period. If you repay before the due date, no interest will accrue, but if it is overdue, there will be late fees.

Take a credit card with a limit of 10,000 as an example. The billing date of this card is the 10th of each month, and the final repayment date is the 30th of each month. If the cardholder spends 10,000 yuan by swiping the card on November 1, and the bill is issued on November 10, the minimum repayment amount is 10-1,000 yuan of the total consumption: If the cardholder deposits 10,000 yuan before November 30, Repayment in full means no interest or late fees will be incurred;

If the cardholder chooses the minimum repayment, that is, only deposits 1,000 yuan into the credit card after the 10th and before the 30th, it will Interest of 0.05% per day accrues. When the bill is issued again on December 10, a total interest of RMB 200 will be generated. The calculation method is: 10,000 (consumption last month) multiplied by 40 (number of days from the accounting date to the current bill date) multiplied by 0.0005 (interest )=200 yuan. You will definitely ask, why is the interest calculated based on 10,000 yuan? Didn’t you pay back 1,000? Why is it 40 days? The last repayment date is November 30th, and there are only 10 days until the new bill date is December 10th.

This is one of the things that people tend to make miscalculations. The card issuer will tell you: "Due to failure to pay off the balance on time, the cardholder is not allowed to enjoy the interest-free period; the bank will be responsible for all the current balances. Interest is levied on a daily basis, and the calculation of the number of days is based on the principle of 'pay first, pay first'. "According to this interest calculation method, if a cardholder spends 10,000 and repays 9,999 and owes one yuan to pay off, then he will have to wait until the next month's credit card bill to pay off. When it is sent over, the interest on it will still be RMB 200.

At present, all domestic bank credit cards adopt this interest calculation method. Therefore, please pay special attention to all cardholders. Don’t pay a few dollars less due to a calculation error, resulting in hundreds of extra interest charges on next month’s bill.

Extended information:

A credit card, also called a credit card, is a credit certificate issued by a commercial bank or credit card company 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 , deposit and withdrawal of cash and other full or partial functions of the electronic payment card [1-2]. 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 Credit Card [3].

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. [4]

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 A credit card refers to a quasi-credit card in which the cardholder deposits a certain amount of reserve as required. When the reserve account balance is insufficient for payment, the card can be overdrawn 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). [5]

On May 25, 2021, the Supreme People's Court issued and implemented the "Regulations of the Supreme People's Court on Several Issues in the Trial of Bank Card Civil Disputes".