Now the use of credit cards has become very popular. Many people like to use credit cards to predict future income and enjoy and meet current consumption needs in advance. Therefore, many people have credit card bills to pay back every month. So how is the credit card bill the most cost-effective? In this article, we will analyze the most cost-effective way to return credit cards. Let's have a look.
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1. Minimum repayment method
Advantages: sharing pressure and not affecting credit record
Disadvantages: there will be revolving interest
It is reported that the so-called minimum repayment amount is generally 10% of the ordinary consumption amount after excluding special items such as annual fee and interest, which will be listed separately in each credit card bill.
If you cannot pay off the bill in full because the bill amount is too large, the minimum repayment can maintain a good credit record, and the bank will not include you in the blacklist of malicious arrears. However, the repayment of the minimum repayment amount will lose the treatment of enjoying the interest free period, and the cardholder will therefore need to pay certain interest.
At present, most domestic banks adopt the method of full interest calculation, that is, from the date of consumption entry, they charge 5 / 10000 interest every day and compound interest on a monthly basis.
2. Installment method
Advantage: no additional interest disadvantage: there are still handling charges
According to reports, the so-called interest free installment repayment business for credit card consumption refers to that the cardholder can apply to the issuing bank for installment repayment business of any period within the specified time after swiping the card. During the repayment period, he can still enjoy 'interest free treatment', but he needs to pay a certain handling fee to the bank.
The installment handling rate of each bank is different.
For example, the highest service charge in three phases is 2.6% of China Merchants Bank and the lowest is 1.65% of ICBC; In 12 phases, Huaxia Bank has the highest handling fee and Everbright Bank has the lowest handling fee of 6%. There are two main ways to collect handling charges: one is to collect them on a monthly basis, which is adopted by China Construction Bank, Bank of communications and China CITIC Bank; The other is a one-time charge when paying the down payment, represented by ICBC, BOC and Zhaoxing.
Credit card risk control and tips:
1. Maintain a good credit record
2. Application and legal use of credit card
3. It is recommended to apply for credit cards through legal channels. Without the legal authorization of the bank, the credit card agency company obtains the information of the credit card applicant through illegal means, which may be used for other illegal purposes, resulting in heavy losses of personal credit, economy and so on. Consumers must apply for credit cards through formal channels.
4. The credit card can only be used by the cardholder himself. This will effectively protect the rights and interests of cardholders and avoid unnecessary losses caused by the theft of credit cards. If necessary, cardholders can apply for supplementary cards for eligible family members.
5. Cash out transaction is an illegal use of credit card. Cash out transaction will affect the normal use of credit card, and even the cardholder's personal credit record in serious cases; The security of cash out transaction is not guaranteed, which is easy to cause personal data disclosure. In order to maintain a good credit record and protect the rights and interests of using cards, do not use credit cards for such illegal transactions.
According to the above analysis, whether you use the minimum repayment or installment repayment, it will produce a large amount of expenses, and you will lose interest free treatment if you use the minimum repayment for a long time. Such use is not only to remove the service fee, but also to deduct the interest, which is even more uneconomical.