First, the benefits of installment payment of credit card bills
1. Relieve the repayment pressure: The biggest benefit of handling credit card installment business is definitely to reduce the burden. When the single-phase bill is too high, the pressure on cardholders to repay in full will be even greater. The bill can be divided into several months by stages, and the cardholder's repayment pressure will be less. Imagine that if you ask your parents to borrow it, your family will be worried; If you borrow it from a friend, you owe a favor. In the future, it is better to change the meal with the interest of the bank.
2. Credit card value-added discount: Bank credit cards generally have special discount merchants, and shopping malls can give gifts at a discount or in full, while the accumulated points can be exchanged for gifts, airline miles or cash in the future.
3. Help to increase the credit card limit: banks operate through fees, interest, annual fees, etc. There is an installment fee for handling credit card bills, so that banks can make money. Of course, banks will hope that cardholders can handle installment business frequently. The underlying rule is that after the cardholder applies to the bank for credit card withdrawal, the bank is more willing to approve it, and the success rate of cash withdrawal will increase.
4. Credit card bill installment has discounts: the bank will hold some credit card discount activities from time to time, including credit card bill installment. At this time, you can reduce certain interest or handling fees, which is quite cost-effective.
Second, the disadvantages of installment payment of credit card bills
1. Reduce the available line: As the credit card line is fixed and the bill is phased, the flexible line will be reduced, which will affect the subsequent consumption.
2. Easy to lead to over-consumption: Because it takes a long time to pay back the money, and only a little bit will be paid back every month, the repayment method of "spending 240 yuan every month and only paying back 20 yuan" is easy to give cardholders an illusion that spending money casually is easy to repay, so it is easy to lead to over-consumption, high bills and selfless consumption.
3. Bear the installment fee: Every bank has to charge a certain fee for credit card installment business, and different banks charge different fees. Taking China Merchants Bank 12 installment as an example, the handling fee is 0.66%, and the longer the installment time, the higher the handling fee. Then the installment bill of 5,000 yuan will bear the installment handling fee of 33 yuan every month, and 12 installment * * will bear the handling fee of 396 yuan. And the handling fee will not be reduced, and the advance payment will also be deducted.
What are the advantages and disadvantages of credit card installment repayment?
The advantages of credit card installment: First, reduce the pressure of repayment or consumption; When we usually spend money, the transaction amount may be relatively high, which will make it difficult for us to pay in full for a while. If we pay by installment, our consumption pressure will be much reduced. For example, when buying an Apple mobile phone, many people will buy it in installments. Second, it is conducive to credit card withdrawal; Credit card limit can be used for our consumption, so credit card limit is very important. If credit cards are often phased, banks will make a profit, which is why banks always encourage customers to phase. And this is also conducive to the increase of our credit cards.
Disadvantages of credit card installment payment; First, you need to pay a certain handling fee; Credit card installment repayment needs to pay a certain handling fee, which is inevitable whether it is installment repayment or installment payment. And the longer the number of installments, the more fees need to be paid. Second, it has a certain impact on handling cards and loans; Although staging can relieve our pressure, if you keep staging, for example, when the transaction or bill amount is not high, it is easy for banks to question your spending power and repayment ability, which will also have a certain impact on your card or loan. So a proper performance is enough.
Credit card installment payment refers to the process that when the cardholder uses the credit card to make a large amount of consumption, the bank pays the consumer funds of the goods (or services) purchased by the cardholder to the merchant in one lump sum, and then the cardholder repays the money to the bank in installments and pays the handling fee. According to the cardholder's application, the bank deducts the consumption funds and handling fees by stages through the cardholder's credit card account, and the cardholder repays according to the monthly recorded amount. At present, the actual annual interest rate of most credit card installment products on the market is around 17%, and some are even higher, which is almost equal to the annual interest rate given by the bank multiplied by 2. The business staff of the credit card center of another credit card joint-stock bank said that sometimes the credit card installment payment is calculated separately from the interest rate, but the actual annualized interest rate is rarely clear in marketing. Citi official website can support credit card prepayment by installment: you can choose to settle the amount to be repaid in advance in one lump sum before the installment expires, and the remaining principal and other handling fees will be recorded in the latest installment bill. For example-can credit cards be repaid in advance by installments? If you applied for 12 credit card bill installment from Citibank before, but want to settle the remaining installments in one lump sum in the sixth installment, then when you choose to settle in the sixth installment, you need to pay the total amount of the remaining installment principal plus the installment fee required for the remaining six installments. In the process of repayment, it should be noted that prepayment cannot be exempted from handling fees.
Why does the bank always ask me to do credit card (debit card) installment?
The bank staff calls you to apply for credit card (debit card) installment in order to earn your installment fee, but not everyone will do so. They also have choices, such as often using large amounts, especially using credit cards (debit cards) to withdraw cash. Be careful, you may be asked to divide your credit card into installments, because your credit card (credit card) is subject to bank risk control. If you don't divide your credit card into installments, your card may be blocked or your interest rate may be reduced. However, if you use the card normally, you can safely refuse. If you do withdraw cash, do several short-term installments, so that banks can earn some fees.
However, credit cards (debit cards) cannot be phased, and some matters should be noted:
1, the installment interest of bank credit card (debit card) is calculated with fixed principal, and the actual interest rate is mostly between 14- 18% per annum;
2. As long as your installment interest is generated, some bank credit cards (debit cards) cannot be settled in advance, and the full interest must be paid in advance.
3. Appropriate staging, but the number of staging should not be too long, which will not only help to increase the quota, but also bring too much economic pressure to yourself.
Why is there always a customer service phone number from the bank for me to stage?
There are three main purposes for bank customer service to ask the main body to handle the installment: first, to improve the service; Second, credit card installment repayment will generate interest and increase bank income; Third, the promotion role.
The author also often receives phone calls from some bank credit card customer service, suggesting to handle installment repayment. Therefore, regarding the existence of this situation, I also consulted a friend who works in a bank, and the answer he gave me was the above three purposes. In fact, many friends know that the main purpose of bank credit card recommending customers for analysis is to generate interest income and increase the bank's income. If you want to talk about the main purpose, it is the same, but it is not just that. After all, banks don't lack those incomes, but more is to improve their services and promote them.
The longest interest-free time for credit cards is generally about 50 days, and the repayment period for ordinary users is between 15-30 days. Of course, it is precisely because of the interest-free period of credit cards that funds borrowed from banks do not generate interest during this period, and only a certain handling fee is charged during the process of swiping cards.
However, the situation of credit card users is different. Some users really don't need to pay in installments, because they just enjoy the extra benefits brought by interest-free in the middle. However, these people cannot represent everyone. In order to better improve the service, bank credit card customer service tends to actively improve the service. Of course, this tendency is very helpful. On the one hand, it can realize the promotion function and let more credit card users know that credit cards can still be phased. If the stage is tense, there are other ways to distract their pressure; On the other hand, it is to increase the interest income in the bank except promotion and commission collection. After all, there is no interest on bank lending funds, so it is naturally a good thing to increase interest income. On the other hand, it is to reduce the bad debt rate. After all, not everyone who uses a credit card can repay on time.
There will be a handling fee for buying a bank in installments. The answers given by other friends mentioned above are already very professional, so I won't repeat them. Here I only add some advantages and disadvantages of installment payment.
Credit card installment, especially large installment, is actually very cost-effective. For example, if you buy a car, the interest on the car loan will generally exceed the interest on the credit card installment. Moreover, if you use credit card installment, it means that you have a credit relationship with the bank, which is very helpful for the bank to comprehensively evaluate your credit, which is why the credit limit of many people has increased a lot after credit card installment.
Many people think not to spend money in advance and not to borrow money from banks casually. In fact, I personally think that the reason why consumption in advance is not recognized is because people are generally insecure and afraid that they can't afford it. But if they can afford it, why not?
For another example, you have 6,543,800 yuan to buy a house worth 6,543,800 yuan. I believe many people will choose to buy in full, but in fact, if you take 300,000 yuan as the down payment and keep 700,000 yuan for other things, the income will definitely be greater than the full purchase. The longer the mortgage period, the better. After all, it may be stressful for you to pay more than 3,000 yuan a month, but after 30 years, you may spend more than 3,000 yuan for breakfast.
The risk of staging comes from the risk of self-control and self-judgment. As long as you use the funds reasonably after staging, reasonable judgment of investment can be avoided.
Chatting with a friend, I said I received an annoying phone call. I said it was a credit card center and he said it was. In the evening, just as I was driving home, Shanghai Pudong Development Bank called and said that you had several large purchases, to confirm whether you were using them yourself. It's normal communication. My friend said: You can call me while I'm driving. Sometimes politeness needs to be called politeness for people who are polite. There immediately said that it would not take long, and my friend directly said: Are you hard of hearing? I said I was driving. You delayed me for a few minutes. I'm devastated. Are you responsible for the accident? Your phone was recorded. If my attention is distracted and I crash because of your delay for a few minutes, causing personal injury, your debt of Shanghai Pudong Development Bank is still the debt of your ignorant salesman. If you can make it up to me, I don't suggest that you keep me for a few minutes.
Fortunately, I met a salesman who was not very stupid. He said to call back in half an hour, but my friend said no. Didn't you invite me to do it in stages? Judging from your character of taking care of the safety of others for your own benefit, it is impossible to specify it in stages. Hang up the phone directly, pull black. A friend said that how can a bank have such a beggar-thy-neighbor salesman? I said that banks are also profit-making organizations and businessmen, and it is normal to use any routine. Who told you that you are using other people's money now? what can I do? My friend said: Yes, I can't help it, but I should be able to pay off the sideline business introduced by A Cheng soon, and I will cancel my card directly after paying it off. I quite agree. That's right.
Don't be fooled by the routine of credit card customer service calling.
1) The general bank calls you by installment, and it won't directly say that you have a good installment. They will ask you first if you have made several large purchases to make sure that you are using them yourself. At this time, I don't know if you are in a hurry. Did you find that I withdrew the cash? If you have this mentality, congratulations, you have been trapped. Using your own pos machine to swipe your card, it is inevitable that there will be some unreasonable bills, giving the other party the opportunity to use the topic. Even if you don't spend too much, do you really think that bank employees are fools and can't see that you are cashing in? He will also say that it is a crime for you to swipe your card frequently on the machine of the acquiring institution.
2) It is nonsense to ensure that you don't spend money indiscriminately. Of course, I used tens of thousands of dollars. If you steal the specified money, you will call the police. When you confirm your use, then the topic comes. The bank will say that you are a quality customer and your money can be postponed. Besides, you have spent a lot of money recently, which should be necessary. As long as you pay thousands of dollars a month, you can reduce your financial pressure. You see, I'll give you a warning first, then ease the atmosphere, give you a step and give you a favor.
3) Calm down and think about it, and you will find that this routine is too deep. First, I ask you directly about your large consumption. Many people who use their own Pos cards will feel guilty, and then I will confirm whether it is your own consumption, that is, I will tell you that you suspect it is illegal to cash out. Be careful. Will the bank reduce my amount when you add it up at this time? Then I'll tell you that you are a quality customer, and you don't have to pay off at one time when you accept the invitation of our bank, as long as you pay back several thousand yuan every month. At this time, the customer service still won't say installment repayment.
4) If you ask about installment repayment at this time, he said that installment repayment is good for your credit accumulation in our bank. At this time, if you don't want to stage, just say no and hang up. If you say think about it, or I'll think about it later, you're finished, and the phone will keep calling you until you get a score. I believe the clerk in the card department has this resilience. Aren't you bored? I don't know how many people passed by. In fact, it doesn't matter and it's no big deal. Just blacken it, or be a little tougher like my friend and return the words.
When the bank asks you to be phased, is it really reminding you to reduce the quota regardless of the phase?
1) think about it. If I want to give you a reduction, I'll give you a reduction directly, and I'm too lazy to call you. The reason why so many routines are used is that both bill installment and cash installment are the biggest source of income for bank credit cards at present, which is why bank customer service takes the trouble to call you.
2) The monthly fee for credit card installment is between 0.5% and 0.9%. Maybe for you, the monthly handling fee is only a few tens of dollars, one or two hundred dollars, not a burden. But if you calculate the installment fee, you will find how many pits there are.
3) For example, your installment amount is 65,438+02,000 yuan, divided into 65,438+02 installments, and the monthly handling fee is 0.6%. The monthly fee is 120000.6% = 72 yuan, and 864 yuan will be paid after 12 months. If we simply use 864/ 12000 to get 7.2%, it is wrong to think that this is the interest rate for installment payment.
4) Don't forget, you are paying back the money to the bank every month, and you owe less and less to the bank, but the interest of each period is still calculated according to the base of 12000 yuan. The actual annualized interest rate needs to be multiplied by the conversion factor 1.85, and the annualized interest rate is about 13.3%. The annualized bank interest rate = monthly interest rate 12 (month) 1.85 (conversion coefficient). This year, all bank interest rates will be raised, reaching 7.4-8.4. If you calculate this interest rate again, it will be even more horrible. The annualized interest rate can reach up to 20%.
The law provides that:
Don't believe that staging can help you accumulate credit in a bank and help you increase your quota.
1) installment fees will be generated in the credit card installment business, which is the bank's net profit. As we all know, since banks are for-profit organizations, they will definitely make some money. After all, it earns 1 yuan from you, and another person's 1 yuan accumulates, and the bank can earn tens of millions or even hundreds of millions from customers. So don't underestimate the profit of these few dollars.
2) We haven't noticed a serious problem. The bank didn't tell us the truth, because the bank often called us not to pay in installments, and suggested that we pay it back in 24 installments and 36 installments. Some people will think, I spent thousands of dollars, do I need to pay it back in two or even three years? Once you listen to the bank's installment Commissioner like this, you will get into a quagmire. The longer the bank's bill is divided into stages, the higher the bank's profit. If you want to earn more, you must be advised to pay in installments for the longest time. Moreover, it is as difficult for you to repay your credit card to the bank as it is to repay your car loan, which shows how poor you are. Will the bank raise the amount for the poor? Don't even think about it. Don't believe the statement that you should only increase the amount in stages.
3) Last but not least, banks are profit-making institutions. I believe you can understand these so-called routines of banks. In order to make money, you can make a decision on the spot and tell you everything. So if you want to avoid so many annoying things, you have to make money and pay back your credit card. The last sentence is cancellation.
Why do banks encourage credit card installment repayment?
Banks can earn interest.
The bank asks you to pay in installments because you can earn interest from it. At the same time, it can also ensure that you can take the money out of the bank and return it on time. From this perspective, the bank is a choice to kill two birds with one stone.
Judge personal qualifications.
Of course, in addition to the above two, banks can also judge your qualifications.
Ok, according to your repayment situation, I will give you a credit card limit after analyzing the background data. For example, why do people often receive temporary credit card limits? It is because of your good record of repayment before consumption, and then further consumption.
Why does the bank always ask me to apply for credit card installment?
If you have a credit card, do you often get a phone call from the bank asking if you want to apply for credit card installment business? Anyway, I have a China Merchants Bank credit card in my hand, and the customer service called me every so often to invite me to do the installment. Then, why does the bank always ask me to do credit card installment?
The reason why banks always ask cardholders to do credit card installment:
1. Credit card installment payment is profitable.
There is no interest-free service for credit card installment business of banks, including bill installment, cash installment, car installment, merchant installment and so on. Cardholders need to bear a certain handling fee rate according to the number of installments selected, and the monthly rate is basically between.
Banks are not charitable organizations, and it is also an act of making money to always ask cardholders to do staging.
2. Reduce bank risks.
Many people use credit cards to overdraw, but after the bill comes out, they have no ability to repay in full. Banks take the initiative to call to invite installment, which can prevent cardholders from overdue and affect credit information.
3, the salesman for personal performance.
The bank has a special customer service representative for installment payment business. These people often have performance appraisal every day. The bigger the business introduction, the higher the commission. Therefore, it is more active to call the cardholder to apply for credit card installment every day.
This concludes the introduction of why credit card installment is needed and why credit card installment has been repaid in advance. I wonder if you have found the information you need?