Which is better, bill installment or minimum payment?

Bill instalments and minimum payments can meet different needs, so there is no set answer to which one is better. To put it simply, if you can repay the money in a short period of time, you can use the minimum payment, and if it can't be turned over for several months, you can use the bill installment. For example, if the salary is delayed for a few days, and the full amount is not paid at once, but it can be repaid in two days, the minimum repayment will be repaid, because after you have money, you can pay it all back, and only calculate the interest for a few days, and the bill installment will not work, and the early repayment in installment will also have to pay a handling fee, which will not be deductible; But if it can't be turned over for several months, use installments and pay back a little every month.

If you still want a longer turnover period, you can use the amount applied for by the Huanbei app to repay the credit card, which can postpone repayment for one month, and the interest rate is differentiated, the better the credit, the lower the interest rate to give full play to the value of credit.

1. Choose the minimum repayment: there will be revolving interest The so-called minimum repayment amount is generally 10% of the ordinary consumption amount after excluding last year's fees, interest and other special items, which varies from bank to bank. A separate "minimum payment" will be shown on each credit card statement.

If you make the minimum payment as shown on your statement, the remaining balance will be your normal credit balance, but you will lose your interest-free period. Pay the minimum payment to maintain a good credit history. However, cardholders are also required to pay a certain amount of interest.

If you repay the credit card with the minimum repayment method, you will be charged 5/10,000 interest per day and compound interest monthly. In this way, the longer you are in arrears, the more pressure you have to make repayments.

2. Choose to repay in installments: you need to pay a handling fee Although the interest on the bill installment can be waived, a certain handling fee will still be charged. For example, if a customer spends 20,000 yuan by swiping the card and repays the loan according to the minimum repayment amount every month, the interest will be calculated according to the full amount of 20,000 yuan, and the annual interest expense will be at least 3,650 yuan according to the daily interest rate of 5/10,000.

If the bank pays in installments, 12 installments are one year, and the rate is charged at a one-time rate of 3%, and the fee is only 600 yuan.

3. Whether to choose installment repayment or minimum repayment amount should be chosen according to the amount and cycle. If the funds cannot be turned over for a while and the full amount cannot be repaid in a short period of time, then it is more cost-effective to choose the installment repayment method. Installment repayment is generally beneficial to cardholders who have a large amount and are unable to repay the loan in one lump sum for a longer period of time.

If the bill amount is low and the billing date is close to the last payment date, it is easier to choose the method of repaying the minimum payment first. In addition, some banks stipulate that if a customer wants to end the instalment early, he must pay off all the outstanding amount in the account before he can repay the instalment debt. In addition, when applying for installment repayment, in addition to understanding the proportion of the handling fee, you should not ignore the deduction method of the handling fee.

Some banks implement the method of paying the handling fee in each installment, and some require the first payment of the handling fee in a lump sum. If you plan to repay the loan early, it is best to choose to deduct the handling fee in monthly installments.

Installment repayment is more cost-effective.

In response to this dilemma, let's make a comparison. Let's get a visual idea by comparing the numbers:

1. Comparison of repayment amount: The minimum repayment amount only needs to repay 1 10 of the repayment amount this month, which is 1000 to repay 100, and the amount is low. I have handled installment repayment, 1000 points for 3 months, naturally more than 300 per month. That's it.

2. Comparison of repayment cycles: the minimum repayment, and the remaining part of the repayment date is before the next month's bill date. Plus some interest paid off in full. Installment payment is a fixed monthly payment, plus a little handling fee, with no interest. However, there is a characteristic of long cycles.

3. Interest comparison: The minimum repayment interest is the total repayment amount according to the interest rate of 5 10,000 per day, in the way of "rolling interest", the interest can be short-term, long-term, and the minimum repayment is continuously used for a year, and the interest generated is amazing. If you have enough money, you may not be able to repay it in any month, and the handling fee will not add up to a high amount, so let's take an example.

1000 yuan, with the minimum repayment amount, 20 interest in the next month, and 12 expenses in installments. However, if the staging is used for 3 months, 12*3=36. These 36 are determined to be paid from the day you do it.

Even if it is still on in the middle, it will be paid according to these months.

Extended information: A credit card can be repaid in advance in a lump sum after the installment is processed. For early repayment, cardholders can apply to the bank, and after the application is approved, the entire installment amount and handling fee can be repaid in one go.

However, early repayment will generally not refund the installment handling fee that has been charged, and in addition, you need to pay a certain amount of liquidated damages, and the specific rate is subject to the amount announced by the bank. Credit card installment refers to the process in which the bank pays the merchant a one-time payment for the goods (or services) purchased by the cardholder when the cardholder uses the credit card to make a large purchase, and then allows the cardholder to repay the loan to the bank in installments and pay the handling fee. According to the cardholder's application, the bank will deduct the consumption funds and handling fees through the cardholder's credit card account in installments, and the cardholder will repay the monthly credited amount.

In terms of cost alone, bill installments are more cost-effective than minimum payments, but they also have many disadvantages, such as a limit on the amount of installments that can be made, a limit on the number of installments, and so on. When you can't afford to pay off your credit card, it depends on the situation. If you're able to pay off your remaining outstanding bills in full in a short period of time, it's a good idea to make a minimum payment.

If you can't pay off the remaining outstanding bills in full in the short term, then it's better to pay the bills in installments so that the cost is smaller.

1. Minimum repayment repayment.

The minimum repayment amount is generally 10% of the bill amount of the month, and the minimum repayment is not overdue, but the minimum repayment repayment cannot enjoy the interest-free period, and the interest is calculated on a daily basis, with a daily interest rate of 5/10,000.

For example, if your credit card statement date is 5 days, the repayment date is 26 days, you spend 5,000 yuan on July 2, the bill amount is also 5,000 yuan, and the minimum repayment amount is 500 yuan, then the interest generated by the next bill will be 5,000 months 2 days - July 26) + 4,500 months 26 days - August 5 ) = yuan.

2. Installment repayment of bills.

There is no interest on bill installment, but there is a handling fee, and the charging standard of credit card installment fee is different for different banks, however, the average monthly handling fee rate of most bank credit card bill installment is around.

Similarly, if your credit card bill amount is $5,000, the handling fee for one instalment is about $5,000, and the more instalments you have, the more handling fee you will incur.

Extended Materials. Credit card installment interest.

ICBC credit card installment handling fee: 3 installments are exempted, 6 installments, 9 installments, 12 installments, 18 installments, 24 installments;

ABC Credit Card Installment Handling Fee: Monthly;

BOC Credit Card Installment Handling Fee: 15% for 3 installments, 6 installments, 9 installments, 12 installments, 18 installments, 24 installments;

CCB Credit Card Installment Handling Fee: 3 instalments, 6 instalments and 12 instalments;

China CITIC Bank Credit Card Installment Handling Fee: 12 instalments;

SPD Credit Card Installment Handling Fee: 3 Installments, 6 Installments, 12 Installments;

China Merchants Bank Credit Card Installment Handling Fee: 3 installments, 6 installments, 12 installments;

Which is the best choice between the minimum repayment amount and the installment depends on the specific situation:

1. For the arrears that are large and cannot be paid off at one time for a long time, in order to prevent the rolling of profits, the cost of installment repayment is relatively low.

2. For those with a small amount, the consumption accounting date is very close to the last repayment date, and can be repaid in a short period of time, it is more cost-effective to choose the minimum repayment amount.

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Legal basis. Civil Code of the People's Republic of China

Article 8. Civil entities engaging in civil activities must not violate the law or violate public order and good customs.

Now the bank's installment fee is generally monthly, taking 50,000 yuan in 3 installments as an example, 50,000, the total handling fee is 975 yuan, and the principal and interest are repaid every month 50975 3=.

However, in order to expand customers, now the bank installment fee will be discounted, generally seven discounts, then only need a month, the total interest yuan.

The bank allows customers to repay only 10% of the bill amount if the credit card bill is not paid in full, and it can not be counted as overdue, but the late payment fee will be counted every day.

The late fee after the minimum repayment amount is generally calculated according to 5/10,000, which is also 50,000 yuan, and we have to repay 5,000 yuan for the minimum repayment, so as to ensure that it is not overdue, and then the late fee is 45,000 yuan per day.

If it takes 90 days (that is, 3 installments) to pay off, then the late fee will be totaled yuan.

The late fee for the minimum repayment is calculated according to the annualized interest rate, which is reached, and the installment fee, even if calculated on a monthly basis, the annualized interest rate is only doubled.

Of course, you can't just follow the script, just say that installment repayment must be more cost-effective than the minimum payment, if you just temporarily can't turn over the funds, you can pay it back immediately, and the minimum repayment is still more favorable than the installment payment.

For example, you only need 30 days to repay the credit card bill in this period, and the late fee is 675 yuan, so you don't need to repay it in 3 installments to bear the handling fee of yuan.

However, now many banks have provisions for early settlement of installments and refund of all remaining handling fees, you can consult clearly in advance, then we can boldly choose the installment repayment method, and we can settle it at any time when we have enough money.

This is only calculated based on 90 days, and careful friends can find that if it drags on for a longer time, the late fee will be much higher than the installment fee.

1. The concept is different.

Credit card bill installment refers to a method of early consumption in which the cardholder applies to the card-issuing bank for installment payment of the consumption amount after the card is consumed and before the due date of repayment.

The minimum repayment amount means that if the cardholder has difficulty in repaying all the amounts payable before the due date (inclusive), the cardholder can repay the loan according to the minimum repayment amount stipulated by the card issuer, but cannot enjoy the interest-free repayment period, and the minimum repayment amount is 10% of the consumption amount plus other types of payables. The minimum payment amount is shown on the current bill.

2. The handling fee charged is different.

The handling fee of different banks varies greatly, and the standard is determined by the length of the term, and the longer the term, the higher the handling fee standard.

Interest is charged on the minimum repayment amount at the rate of 5/10,000 per day from the date of each transaction until each outstanding amount is paid.

Extended Capture Data:

Once you've made a credit card purchase, you'll receive an electronic or paper statement from your bank on the bill date. There are two amounts of envy that we need to remember. One is the current repayment amount and the other is the minimum payment amount.

It will clearly tell you the minimum payment amount and the full payment of the current bill, as well as the statement date of the current bill and the payment date of the current bill.

Therefore, the full repayment of the credit card is relative to the minimum payment. In fact, this is also a big benefit of credit cards, once you spend a credit card, beyond your repayment range, you can choose to repay with the minimum payment, so that it will not affect your personal credit. But this means that you can no longer enjoy the benefit of the loss of interest.

Bill installment is the most convenient installment method, which is basically supported by all card-issuing banks, and it is easy to apply. Users only need to apply for installment to the card-issuing bank through ** and other methods after swiping the card and before the monthly bill is dispatched. Under the premise of ensuring a good credit history, the cardholder can repay the minimum repayment amount stipulated by the card issuer, but cannot enjoy the interest-free repayment period, and the minimum repayment amount is 10% of the consumption amount, which will be listed separately in each credit card statement.

Cardholders who choose the minimum payment lose their interest-free status when they return the minimum payment, which means that they will need to pay a certain amount of interest on the following payments. At present, most domestic banks adopt the full interest calculation method, that is, from the date of consumption accounting, the interest is charged at 5/10,000 per day, and the interest is compounded on a monthly basis.

Choosing the minimum repayment is subject to a high interest rate, and the minimum repayment is generally chosen because of the recent financial constraints. In fact, you can also use the Huanbei app, first use the Huibei app to apply for a limit, repay the credit card debt, and then repay the app through the bill installment, so as to avoid high interest rates and avoid the occurrence of overdue.

1. The minimum repayment is the minimum repayment amount of the current month calculated according to the current month's bill. If you are unable to repay the full amount in the month when you are short of funds, you can only repay this part of the minimum payment amount. The remaining amount, along with interest, will be accumulated to the next month's bill.

2. According to the calculation method of minimum repayment, the minimum repayment = 10% (credit card amount + cash withdrawal amount) + 100% (current installment amount + unpaid amount of minimum repayment in the previous period + excess amount + fee interest).

3. Bill installment can be divided into unbilled installment and billed installment, and there are many options for installment methods, the amount and interest of the installment part of the bill will be repaid from the next month, and the first installment and interest of the unbilled installment amount will be repaid from the repayment date of the current month.

4. If Songchun temporarily uses the minimum repayment in an emergency, the interest may be lower than the total handling fee after the installment. However, if you need to repay the loan in multiple instalments at the same time, the instalment will be far more preferential than the minimum repayment. And the more instalments, the less the total handling fee is lower than the minimum repayment.