How to calculate interest on overdue repayment of Bank of China credit card

If you fail to repay in full before the interest-free repayment period, you will not enjoy the interest-free repayment period and will be charged as The overdraft interest is calculated based on the actual arrears amount and the actual number of days in arrears starting from the transaction recording date. The overdraft interest rate is 0.05% of the daily interest rate, and compound interest is calculated on a monthly basis. It is recommended that you repay your loan as soon as possible to avoid incurring more additional charges.

The above content is for your reference, please refer to actual business regulations.

How much interest is charged on a credit card that is overdue for one day?

Credit cards generally have a 30-day interest-free period. As long as consumers pay off the balance within the interest-free period, no interest will be charged. If a consumer is overdue, interest is generally calculated at a daily interest rate of 0.05. If the consumer is overdue for more than 30 days, some banks will calculate interest at a daily interest rate of 0.1.

If a consumer uses a credit card to spend 10,000 yuan overdue, the interest that needs to be paid every day is: 100,000.05 = 5 yuan, which is 150 yuan per month (calculated as 30 days). In general, it needs The interest paid is very high, so it is recommended not to be overdue easily.

Take China Merchants Bank Credit Card as an example:

1. When the credit card bill is not repaid in full and on time, recurring interest will accrue: interest is calculated based on each purchase in the bill. Interest is calculated at 0.05 per day starting from the consumption recording date (usually the second day of the consumption date) until the transaction is paid off.

The corresponding annual interest rate upper limit is 18.25 and the lower limit is 12.775. (Due to factors such as different number of days in the month and different repayment situations, the actual annualized interest rate may be different from the above-mentioned annualized interest rate.)

2. Cash advances do not enjoy interest-free repayment. From the day the cash advance is processed to the date of repayment, interest will be charged at a daily rate of 0.5%, and compound interest will be charged on a monthly basis. The corresponding annualized interest rate upper limit is 18.25 and the lower limit is 12.775.

(Due to the different number of days in the month, different repayment situations and other factors, the actual annualized interest rate may be different from the above-mentioned annualized interest rate.)

Notes on using credit cards:

1. Do not easily disclose personal information to others, including your ID number, bank code and other information, and do not give your bank card or credit card to others. If you have any doubts and need to report a crime, please go to a bank or other financial department for consultation in person or report the crime to the local public security agency. Do not call the phone number provided by the suspect to report the crime.

2. Pay attention to safe use of online banking. Install necessary anti-virus, anti-Trojan software and online banking security controls, make sure you are logging in to a real bank website, do not easily accept unfamiliar files, and do not easily use other people's computers to log in to online banking.

3. Be vigilant when using self-service banking. At present, the doors of self-service banks have been gradually transformed into button-opening doors. When withdrawing money from self-service banks, if you find suspicious devices or prompt messages such as "Press password to confirm" at the entrance and exit of self-service banks, do not swipe your card or enter password, and promptly Report to banks and public security agencies.

4. Be careful to separate the card and ID card. Many people put their ID cards and bank cards together in life. Once lost or stolen, the cardholder's funds are highly likely to be lost.

5. When swiping a credit card for consumption, you must confirm whether it is a UnionPay POS machine. After swiping the card, you must sign the shopping settlement statement. At the same time, you must also pay attention to whether there are repeated problems and prevent the returned bank card from being used. Transfer package. In addition, the signature style should be as consistent as possible with the signature on the card.

How is interest calculated for overdue credit cards?

1. A credit card is a credit certificate issued by a commercial bank or credit card company to consumers with qualified credit.

2. The form of a credit card is a card with the name of the issuing bank, validity period, serial number and cardholder’s name printed on the front. 1. Consumers holding credit cards can shop or consume in specialized commercial service departments, and then the bank settles with merchants and cardholders. Cardholders can overdraft within the prescribed limit.

Third, the earliest credit card appeared at the end of the 19th century.

In the 1980s, the British clothing industry developed so-called credit cards, and the travel and business sectors followed suit. But at that time, cards could only be used for short-term business credit loans, and the money still had to be repaid as needed, so there were no long-term defaults and no credit limit. In the 1950s, McNamara, a credit expert in Manhattan, was having dinner in a restaurant. Because he didn't bring enough money, he had to ask his wife to send it over. This made him feel very embarrassed, so he organized "DinersClub" (English: DinersClub). Members bring a meal card to 27 designated restaurants where they can collect their fees instead of paying cash. This is the earliest credit card. Franklin National Bank was the first bank to issue a credit card, and other U.S. banks followed suit.

It is said that one day, American businessman Frank McNamara entertained guests in a hotel in New York. After the meal, he found that he had forgotten his wallet. He was deeply embarrassed and had to call his wife to bring cash to the hotel to settle the bill. So McNamara came up with the idea of ??starting a credit card company. In the spring of 1950, McNamara and his friend Schneider invested US$10,000 to establish Diners Club in New York, the predecessor of Diners Club. Laidashe provides members with a card that can prove their identity and payment ability. Members can use the card to record accounts and make purchases. This kind of credit card that does not require a bank to handle is still a commercial credit card.

4. Another way to say credit card is that credit card is a non-cash transaction payment method and a simple credit service. Credit cards are generally plastic cards with a length of 85.60mm, a width of 53.98mm, and a thickness of 1mm. They are issued to cardholders by banks or credit card companies based on the user's creditworthiness and financial resources. Cardholders do not have to pay cash when using a credit card, and repayment is made on the billing day. Except for some credit cards that are combined with debit cards, general credit cards are different from debit cards and ATM cards in that credit cards will not directly debit the user's account. In February 2012, the bank confirmed that credit cards without passwords are more secure, and if stolen, they will share the responsibility with the bank. Enjoy the 25-56 days (or 20-50 days) interest-free period. Credit card consumption enjoys an interest-free period, and the bill amount is paid off before the due payment date without incurring any fees. There is no interest-free repayment period for cash withdrawals. From the date of cash withdrawal, interest of 0.5% will be charged every day, and the bank will also charge a certain percentage of cash withdrawal fees.

How to calculate overdue interest on credit cards

If the credit card is overdue, the bank will calculate compound interest at a daily interest rate of 0.05 from the date of consumption.

The emergence of credit cards has provided people with more conveniences. Cardholders can use credit cards to overdraft consumption, and banks provide credit card users with an interest-free period for repayment, as long as they are paid off within the specified repayment period. If you owe money, you don't need to pay any interest.

Therefore, credit card consumption is currently the preferred consumption method for many young people. However, credit cards are not interest-free at all times.

Cardholders need to pay credit card interest in the following situations:

1. Withdraw cash

Credit card overdraft purchases can enjoy an interest-free period, but cash withdrawals are not available. During the interest-free period, generally from the day the cardholder withdraws cash, the bank will charge cash withdrawal interest at a daily interest rate of 0.05. For example, if a cash withdrawal of 100 million is made, the interest per day will be 5 yuan.

In addition to interest, banks will also charge cash withdrawal fees. Different banks have different fee standards, which are generally 1-3 of the cash withdrawal amount, and there are minimum and maximum fee limits;

2. Installment repayment

Instalment repayment is a credit card repayment method that many cardholders will encounter. When a user uses a credit card to make a purchase, if the user cannot make the repayment within the specified repayment period, If you pay off the debt, you can apply for installments to ease the repayment pressure.

You do not need to pay interest in installments, but you need to pay handling fees; different banks have different handling fee standards;

3. Minimum repayment

When the cardholder cannot When paying off the debt in full, in order to avoid overdue payments, in addition to installments, you can also repay the minimum repayment amount. Generally, the minimum repayment amount is 10% of the amount owed. For example, if the debt is 2,000 yuan, then the minimum repayment amount is 200 yuan. Yuan.

The minimum repayment cannot enjoy the interest-free period. All transactions on the current bill will calculate recurring interest at a daily interest rate of 0.05 until the user pays off the balance.

4. Credit card overdue interest

If the cardholder is overdue when using the credit card, the bank will charge overdue interest to the overdue user. Currently, the overdue interest rate of each bank is It is calculated based on the daily interest rate of 0.05.

Credit card overdue interest = 0.05 of the amount consumed. The number of days overdue on the credit card is calculated from the date of consumption. Overdue interest is calculated based on compound interest, which is what everyone calls compound interest. The interest will stop accruing only when the borrower repays the entire amount owed.

That’s it for this introduction on how to calculate overdue interest on credit cards.