Is it cost-effective to repay by installment with credit card?

Credit card installment means overpaying the handling fee. The handling fee rate of each bank's credit card is different, but most of them are between .6% and .8%.

if you can't repay in full at the moment, applying for installment payment can ease the pressure on funds. The specific charges are cost-effective, depending on whether your handling fee can be borne.

Extended information:

Credit card consumption by stages means that if a single consumption amount reaches the minimum consumption amount stipulated by the bank, the cardholder can apply to the bank to split the consumption into several repayments, and the bank will charge the consumption into your credit card account.

Supplement: When each cardholder applies for a credit card, the bank will ask him to choose a date or a default date as the billing date.

apply by phone or at a physical bank.

since the cardholder does not spend money in the cooperative merchants (shopping malls or online) of the issuing bank, that is, the products purchased by the cardholder do not come from the merchants designated by the issuing bank, and they apply for installment business after they have already spent money, so don't confuse consumption installment with mail order installment and merchant installment.

1. After spending, the cardholder needs to apply for installment before the billing cycle (between the consumption date and the billing date), otherwise the bank will deduct the credit card amount and cannot return it. (The specific application date depends on the bank)

You can apply within 1 days from the successful consumption to the due repayment date after the bill date.

2. The interest-free repayment period for general consumption installment business is 5 days, but it is 56 days for Shanghai Bank and 51 days for Minsheng Bank.

if the cardholder repays the loan outside the interest-free period (overdue repayment), he will have to pay a certain amount of late payment fee (5% of the unpaid part) and interest (5/1 of the unpaid part, calculated according to compound interest), and some banks will set the minimum amount of late payment fee.

3. The cardholder's consumption amount can't be converted into installment payment in full. Generally, the bank stipulates that 9% of the cardholder's consumption amount can be converted into installment payment, that is, the cardholder has to pay 1% of the down payment.

Reference: Encyclopedia-Credit Card Installment