What Is a Revolving Line Of Credit?

It is a very convenient short-term loan tool. When you cannot pay the amount on your bill at one time, you can use this function to determine the amount and time of repayment on your own, without providing any collateral, and can be settled at any time. Revolving credits can save you from having to pay off your entire account temporarily, but you must pay at least the "minimum amount payable" listed on your monthly statement.

Revolving credit

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Is a very convenient

feature:

Because revolving credit is a

Revolving credit example

Mr. Li's billing date is the 18th of each month, and the repayment due date is the 7th of each month; On April 18th, the current bank statement printed by Mr. Li for the bank covers his period from March 19th to April 18th. Mr. Li has only one purchase in this billing cycle-on April 15th, the consumption amount is RMB 1,000; the "repayable amount in this period" of Mr. Li's current bill is RMB 1,000, and the "minimum repayment" "Amount" is 100 yuan;

For different repayment situations, Mr. Li's revolving interest is:

If Mr. Li made a full repayment of 1,000 yuan before May 7, the recurring interest on the statement on May 18 would be 0 yuan.

If Mr. Li only repays the minimum repayment amount of 100 yuan after May 7, the recurring interest on the statement on May 18 is equal to 16.40 yuan

Revolving credit revolving interest

The specific calculation is as follows: recurring interest = 1,000 yuan x 0.05% x 22 days (April 15-May 7) + (1000 yuan-100 yuan) x 0.05% x 12 days (May 7-May 18 ) = 16.40 yuan