How Do I Arrange for a Credit Card Payment Plan?

Credit card repayment means that when the cardholder's credit card purchase reaches the last repayment date, in order to ensure the cardholder's good credit history, the bill consumption funds are returned to the bank.

Credit card payments

Credit card repayment means when

There are more and more new repayment methods, but the mainstream ones are online transfer repayment provided by banks, card-to-card repayment by third-party POS machines, and telephone bank repayment. If there are fixed media, Get used to the repayment model and repayment cycle. Every month, credit card repayment will become a "hands-free", which will never take up too much time for you, let alone go to a long line of bankers. It should also be reminded that when choosing a credit card, you should ask clearly what repayment methods this bank supports, and try to handle credit cards with more diversified repayment methods. Don't be fooled by small profits such as "card shopping discounts", after all, Credit card convenience is the most important thing.

Overdue repayment of credit cards has serious consequences, so overdraft consumption should be moderate. Although the biggest feature of a credit card is its overdraft function, it actually constitutes the loan relationship between the customer and the bank. Failure to repay at maturity may not only cause legal disputes, but also bear high interest rates. The most important thing is that Form a bad credit record, which will adversely affect future work and life.

Consequences of credit card overdue repayment

After defaulting on high-interest penalty credit cards, the penalty fees usually involved are recurring interest fees and late fees. Revolving credit is essentially a small, unsecured loan that accrues interest on a daily basis. If the full repayment is not made on the last repayment date, revolving credit interest will be generated on the next statement, and it needs to start from the date of consumption. Calculate interest.

Except for one ICBC, the remaining 12 banks still implement full penalty interest rates. Full penalty interest means that even if the customer has repaid part of the money, the repayment part is not deducted when calculating the penalty interest. The interest cost is usually calculated at five ten thousandths per day. In addition, some banks have stipulated that within 15 days from the date of bookkeeping, the daily interest rate is calculated as five ten thousandths of a day. For more than 15 days, the daily interest rate is calculated as tenths of ten thousandths of a day. Fifteen calculations, the longer the arrears, the higher the penalty rate.

For example, suppose Miss Li's billing day is the 10th of each month, and the last repayment date is 28th. On June 11th, 10,000 yuan was spent. On July 28th, Miss Li's funds became tight and she paid the lowest first. The repayment amount is 1,000 yuan, so the recurring interest expense on the August 10 bill is: 10,000 yuan × 0.5 × (July 28 ~ June 11) + (10000 yuan ~ 1000 yuan) × 0.5 × ( (August 10th to July 28th) = 293.5 yuan.

If the cardholder fails to repay the minimum repayment amount, in addition to the recurring interest fee, a late fee will also be incurred, which is calculated based on 5% of the minimum repayment amount. If Miss Li only paid back 500 yuan, the late fee will be (1000 yuan to 500 yuan) x 5% = 25 yuan. In this case, the recurring interest expense will rise to 296.75 yuan, and Miss Li's penalty interest totals 321.75 yuan that month.

Credit card late repayment consequences 2

As a result of legal disputes, violent collection of credit cards has become a hot topic. Many bank credit card centers outsource credit card collections to some so-called debt collection companies. These companies have different strengths and weaknesses, and their debt collection methods are rough, which has caused great distress to customers.

Not only that, but defaulting customers may also face legal disputes. According to the "Criminal Law", if a malicious overdraft credit card is more than 5,000 yuan, the bank collects it for three months and does not repay it. In serious cases, it may be held criminally liable for fraud. For the defaulting client, after entering the judicial process, it not only affects his reputation, but also loses more costs. In addition to paying the arrears, he also has to bear the costs of litigation, which is even worse.

Consequences of Overdue Credit Card Repayment 3

Leaving "credit stains" in the national credit reporting system In 2006, the central bank set up a nationwide unified database of corporate and personal credit information. As long as the card has been issued by a bank and loans have been made, a copy of the data will be automatically generated in the system. Your own "credit report", the "stain" in this report cannot be ignored, it will affect the application for various types of loans, insurance, job hunting, studying abroad, etc., bad records are generally kept abroad for 7 years. In November 2012, the central bank's new personal credit report was launched. Credit cards and loans that were past due before October 2009 will no longer be displayed, and overdue records will be retained for 5 years thereafter. This means that the public's overdue negative record is no longer accompanied by life, and if it can be repaid in full and on time for 5 years, it can be returned to its credit.

Tips: As an emerging payment method, credit card is also the simplest financial management method for consumers. Although overdraft consumption can reduce the financial pressure of cardholders' daily consumption, it is very important if the cardholder is not properly managed or does not have a good financial management concept. It's easy to get a bill into a slave. The editor here advises consumers to use the card to pay back when the bill pressure is too heavy. You can use the bank to apply for installment payment or apply for delayed repayment and extend the installment rollover to relieve the pressure. Whether your consumption pattern is healthy and reasonable.

In April 2016, the Central Bank issued the "Notice on Credit Card Business Related Matters", which increased the market pricing attributes of credit cards and also diversified credit card equity. The most important point is that liquidated damages are no longer profitable. ^[1]