1. What do you mean by paying interest in advance?
1. Interest prepayment In terms of financing or bill financing, it means that part or all of the proceeds from financing investment or financing can be paid in advance, and the principal and interest are generally cashed in advance and paid to customers in the form of invoice or letter of credit.
2. In the field of loans, there is also a saying that loan interest is paid in advance. General lending institutions or financial service structures agree to collect loan interest in advance when lending money, that is, collect interest first and then collect loan principal. The payment method depends on the loan contract. There are one-time loans that charge interest, and there are also batches and monthly principal payments, which is commonly known as beheading interest in the industry.
3. For example, in the definition of financial management, interest is paid in advance, that is, the financial management company will pay the financial management interest to the customer first, and then return the investment principal after it expires; If the loan is defined as interest payment in advance, such as charging the loan interest at one time when buying a car, the loan interest will be collected and paid together with the down payment before the monthly car purchase.
2. What do you mean by overdraft interest?
1. Overdraft interest generally refers to that when a user uses a credit card for credit card spending, the amount of credit card spending exceeds the credit limit of the credit card. At this time, the excess part needs to pay some interest, generally calculated at a daily interest rate of 0.5 ‰ until the cardholder pays off the excess part.
In fact, there is absolutely no need to spend more than the credit limit with a credit card. If the credit line is insufficient, users can apply for a temporary credit line. However, the amount of temporary credit line approval needs to be decided by the bank according to the cardholder's habit of using the card, and the temporary credit line can be applied directly by telephone.
3. The temporary credit card line must be paid off in one lump sum after use, and repayment by installments is not allowed, and there is a certain period. However, the newly applied credit card generally needs to be used for more than 3 months to apply for a temporary limit.
4. Measure your repayment ability before, lest you can't repay on time in the future. When spending by credit card, it is best not to exceed 50% of personal income every month, otherwise it is easy to fail to repay the arrears on time. However, when repayment is difficult, installment repayment or minimum repayment amount can be adopted, which can effectively reduce the repayment burden.