Financial experts said that in order to reduce the repayment pressure after overdraft, credit card holders can apply to the bank for interest-free installment payment. The interest-free period is generally divided into three months, six months and 12 months. However, after the cardholder's credit card installment payment is interest-free, the bank will charge a certain percentage of the handling fee for overdraft consumption. Some banks stipulate that the three-month interest-free period fee rate is 0.7% per month, the six-month 1 February fee rate is 0.6% per month, and the total fee rate of1year is 7.2%, which is almost equal to the bank's one-year loan interest rate. Some banks calculate the handling fee according to the proportion of total payment. For example, the handling fee for the repayment period 12 months is about 2.5% of the total installment payment.
But sometimes this is not the case. This is a rare case.
in other words
Nowadays, many credit card users choose credit card interest-free installment payment in order to reduce the repayment pressure. However, the reporter found that credit card interest-free installment payment is not "free" and may not be cost-effective.
Interest-free installment payment by credit card launched by the bank refers to the number of times that the cardholder agrees to pay off the overdraft after shopping in the mall with the credit card. During the repayment period agreed by both parties, the bank does not charge overdraft interest. It is understood that at present, many banks in Chongqing have joined hands with building materials stores, department stores, lifestyle supermarkets and home appliance stores. It is stipulated that the cardholder can choose to repay the overdraft amount in installments when the bank's special merchants overdraw any goods.
In order to attract cardholders to overdraw, most banks have set up interest-free installments with different terms. Ordinary credit cards can be divided into three-month, six-month and twelve-month interest-free installments, and cardholders can choose the installment grade according to their income, as the bank said, "reducing the repayment pressure after overdraft".
After the credit card is overdrawn, it will be repaid in installments, and the cardholder does not have to pay interest. So, why should banks compete to launch this business? The reporter found that the bank did not lend you money for nothing, but turned the overdraft interest of the credit card into a trick.
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The reporter verified with many banks, such as China Merchants Bank Chongqing Branch, that when cardholders apply for interest-free installment repayment of credit cards, the bank will charge about 0.6% monthly fee, and the installment repayment fee of 12 is as high as about 7.2%, which is higher than the preferential interest rate of loans of the same grade. For example, if an overdraft credit card is used to purchase a laptop with a value of 1 10,000 yuan, the cardholder has to pay a handling fee of about 720 yuan for the repayment of 12; In the same period, if you borrow 6,543,800 yuan to buy this computer, you only need to pay 620 yuan's interest.
Cardholders may wish to choose credit card installment payment, be a "installment family", and allocate the money spent in the New Year to the monthly expenses in the future to ease the repayment pressure. Installment payment is not limited to buying products in shopping malls. In fact, many purchases such as car purchase, decoration, wedding, online shopping mall, etc. As long as a single consumption reaches a certain amount, you can pay by installments.
Any merchant pays by installment. PK designates the merchant to pay in installments.
The rules of installment payment are different from bank to bank. Generally speaking, it can be divided into designated merchant installment payment and arbitrary merchant installment payment. These two installment payment methods can be interest-free during the interest-free period, but a certain handling fee will be charged.
● The handling fee is cheaper for the designated merchants in installments.
Installment payment by designated merchants is a payment method jointly launched by banks and merchants. The biggest advantage is that the handling fee for installment payment is cheaper, and some designated businesses even waive the handling fee for installment payment.
For example, Bank of Communications (60 1328, stock bar) cooperates with merchants such as Suning, Gome, Dazhong Electric, etc., and can apply for installment payment if the price of any product exceeds 1500 yuan. If you use the Bank of Communications credit card to buy electrical appliances in Suning, the one-time payment fee will be 4.5% for 12 installment repayment; If any merchant pays by installment, the credit card fee of Bank of Communications is as high as 8.64%, and the installment fee of designated merchants is nearly half cheaper.
However, although the fee for installment payment by designated merchants is low, the goods, merchants and installment times purchased by cardholders are restricted by banks.
● Convenience It is more convenient for any business to go on stage.
The convenience of installment payment by any merchant is that consumers can shop at will. No matter the merchant or commodity, they can apply for installment payment to the credit card customer service after a single credit card consumption reaches the amount stipulated by the bank.
The standard of installment fee is determined according to the number of installments. After the cardholder consumes, the overdraft amount can be converted into 3 installments, 6 installments, 9 installments, 12 installment, 18 installment and 24 installments.
Usually, the more installments, the higher the handling fee. For example, China Bank (60 1988, share it) pays by credit card installment, 1.95% of the handling fee is paid in three installments, 3.6% in the sixth installment, and 7.2% in the second installment. If the repayment is made in 24 installments, a high handling fee of 15% will be required.
For example, for credit cards issued by GDB, the handling fee is paid in each installment, and the 12 installment is 0.65%. If it is divided into 24 installments, the handling fee paid for each installment is 0.72%.
Cardholders can choose their favorite merchants to buy goods, or they can choose online shopping and credit card consumption. It is very convenient for cardholders to spend money by credit card without leaving home, and then apply for installment payment.
Designated merchant installment payment
● Designated merchant installment payment process
1, swipe your card at the cooperative merchants designated by the bank credit card.
2. According to the consumption amount, select the installment number, confirm the handling fee and handle the installment.
3. After the installment is successful, confirm the possession of the credit line and collect the handling fee.
4. The handling fee shall be paid in one lump sum and repaid in installments.
● China Merchants Bank (600036, Share Bar) has the largest number of designated merchants.
Usually, banks often cooperate with Suning Appliance (002024, stock bar), Gome and other electrical shopping malls. Usually, if a single consumption exceeds 1500 yuan, it can be paid in installments. The installment fee and the number of installments stipulated by each bank are different. Generally speaking, it is a one-time payment, that is, the first repayment will pay off the current period and all expenses.
Among banks, China Merchants Bank has the largest number of designated merchants and the widest types of merchants, including Suning, Gome, Dazhong, Hongtu Sanbao and other electrical stores, as well as Imperial Furniture, B&Q and other home stores.
Merchants of China Merchants Bank (600036, Stock Bar) are exempt from installment payment fees: Parkson Mall, Ba, Dynasty Furniture, Illinois, Aosheng, Fitness First, Meikemeijia, Wall Street English, Mahua Slimming and Phoenix International Travel Service.
Any businessman pays by installment.
● Installment payment process of any merchant.
1, credit card shopping consumption, regardless of merchants and commodity types. 2. If you meet the single consumption limit stipulated by the bank, you can call the bank customer service to apply for installment payment. Please note that you need to apply before the final application date stipulated by the bank (such as the billing date). 3. Apply for installment payment successfully, and confirm the repayment amount and formalities fee of each installment. 4. Repay each installment and pay the installment fee.
● Installment payment fee
Huaxia bank (6000 15, stock bar) has the highest cost performance.
Huaxia Bank is the most cost-effective credit card installment payment fee among all banks. The handling fee for each period is 0.5% of the consumption, and the handling fee for other banks is usually between 0.6% and 0.72%. If the credit card of 10000 yuan is divided into 12 periods, the credit card of Huaxia Bank needs to pay the handling fee of 600 yuan, the credit cards of China Bank, Agricultural Bank, Industrial and Commercial Bank of China (60 1398), China Construction Bank and China Merchants Bank need to pay the handling fee of 720 yuan, and the handling fee of Guangfa Credit Card and Shenzhen Development Credit Card needs to be paid.
If you have several banks' credit cards and plan to shop in installments, simply calculate which bank's installment fee is more cost-effective.
In some banks, such as Bank of China, Industrial and Commercial Bank of China, Xingye and China Merchants Bank, the down payment of credit cards is a handling fee. For example, the credit card of China Bank, 10000 points 12 installment repayment, the first installment repayment 1553.33 yuan, and the subsequent installment repayment of 833.33 yuan.
Some bank fees are paid in installments, such as Huaxia, Shanghai Pudong Development Bank, Shenzhen Development Bank, Guangfa Bank, Agricultural Bank of China, China Construction Bank, China CITIC Bank and Bank of Communications, such as CCB (60 1939, shares bar) credit card, 10000 yuan is 12 installment, and 60 yuan fee is/kloc-0.
Prepaid expenses are wasted.
If the cardholder wants to repay in advance, it should also be noted that most banks will not refund the handling fee paid in advance. If the handling fee is paid in one lump sum, the cardholder will suffer a little from prepayment.
Some banks pay fees in installments. If they repay the loan in advance, the fees paid before cannot be refunded, and the remaining installment fees will not be paid, such as the Agricultural Bank of China. However, some banks, such as GDB and CCB, need to pay the remaining installment fees in addition to the remaining principal. In addition, Huaxia Bank also needs a prepayment fee of 20 yuan.
Credit card installment points are generally divided into two types, one is to give all the points at one time, such as Huaxia, CITIC, Agricultural Bank of China and ICBC. The other is based on the repayment amount of each installment.