What is the impact of a credit card only on the minimum repayment?

Generally speaking, credit cards have three types of repayments, one of which is full repayment, the other is repayment in installments, and the third is repayment according to the minimum repayment amount. Full repayment and instalment repayment are well understood, so what is the minimum repayment? What is the impact if you pay the minimum amount? The following small series will analyze for you.

Simply put, the cardholder chooses to repay the loan according to the minimum repayment amount, so as long as the repayment amount is not less than the minimum repayment amount (10% of the current bill), even if it is repaid on time, this method will not affect the card. Personal personal credit record, BUT, is this finished? No, because the unpaid bill will charge interest, and the interest is not low.

1. What are the minimum repayments?

If we only use credit cards and have not previously applied for credit card instalments, then the minimum repayment amount for the current month is 10% of the current bill. However, the minimum repayment amount in the strict sense includes: 10% of consumption, plus 10% of current, plus 100% of the principal of the installment, plus 100% of the expenses and interest, if the “previous bill” is not returned yet For the minimum repayment amount, the unpaid portion of the minimum repayment amount of the “previous bill” is also required.

In general, the sum of the minimum repayments includes the minimum repayment amount for several items of consumption, installment, cash withdrawal, and interest. Therefore, from a conceptual point of view, we know that we can't owe money, otherwise the various expenses will add up, even if the minimum repayment amount is quite large.

Second, full penalty interest, not cost-effective

If you choose to repay on time according to the minimum repayment amount, although the credit status is not affected, the amount used on the cardholder's current bill will not be eligible for interest-free repayment period (the original full repayment can enjoy up to 50 days) The interest-free period), the amount used on the current bill is calculated as the overdraft interest from the bank's accounting date to the day before the repayment is recorded. This is the full penalty. The full penalty interest on a credit card means that if the credit card is not fully repaid, the unpaid amount and the repaid amount will no longer enjoy the interest-free period. The current bill will be fully paid, but will be based on each credit card transaction date. Calculated by the number of days between the final repayment dates.

Third, the example lets you know how much interest is high

For the full penalty interest, it may not be clear enough. The Xiaobian here is more convincing through an example. For example, CCB credit card, the billing date is 10 days per month, and the repayment date is 30 days per month. If you spend 10,000 yuan on the 1st of this month, you will only pay 5,000 yuan on the due date. The remaining 5,000 yuan will be repaid on the 10th of next month, which is 10 days late. Calculated according to the prescribed method of full penalty interest, then the credit card interest you have to bear is calculated as follows: 5000 yuan * 0.05% * 30 days (from the 1st of the month to the 30th of the month) + 5000 yuan * 0.05% * (30 days + 10 days) ) = 175 yuan. I saw it, the price of 10 days late is 175 yuan. Most importantly, the date on which interest is calculated is calculated from the billing date, not the repayment date.

Fourth, the minimum amount of credit card repayment

If you are involved in cash withdrawal, consumption, staging, etc., you may be blinded by yourself. What is the minimum repayment amount? In general, bank credit cards will have SMS alerts, or paper bills will be sent to you (some banks have now cancelled paper bills and sent them by email). The above will tell you what the minimum repayment amount is, or how much you can apply for instalments. The minimum repayment amount does not need to be contacted by the bank. As long as the bank deduction amount is greater than or equal to the minimum repayment amount, it will not be overdue, but the interest is calculated according to the above.

On the whole, the most ideal credit card consumption method is to use the interest-free period. If it is due, it will be repaid in full. Otherwise, the interest after the minimum repayment amount, as well as the credit card cash withdrawal and installment payment costs are actually higher. If you can't raise the funds for repayment, there are some credit card repayment platforms on the market, and cardholders can try to handle credit card compensation services. However, for credit card compensation services, you need to choose a reliable and secure platform to prevent personal information from being leaked. This is a last resort and is not recommended.

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