Ms. Song, who lives in Shanghai, handled the credit card installment repayment business. However, after repaying more than 30 times on time, she found that the handling fee and interest paid were higher than the amount calculated by herself, which triggered a dispute with the issuing bank.
Nowadays, more and more people choose credit card installment business, but the problems during use are becoming increasingly prominent. For consumers, what are the precautions for choosing credit card installment business?
installment business is important in
Shanghai Banking and Insurance Regulatory Bureau recommends that credit card installment business be scientifically identified.
Credit card installment repayment refers to the process in which the bank pays the merchant the consumption funds of the goods (or services) purchased by the cardholder to the merchant in one lump sum when using a credit card for large-scale consumption, and then lets the cardholder repay the bank in installments and pay the handling fee.
After reaching an agreement with the bank, the cardholder can apply for installment repayment of the unpaid bill, or can apply for installment repayment of large-scale consumption such as car purchase and decoration. If the cardholder urgently needs cash turnover, he or she can apply for cash transfer or cash withdrawal within the credit card pre-borrow cash amount.
It should be noted that according to relevant regulatory regulations, in principle, pre-borrow cash business does not enjoy interest-free repayment period or minimum repayment amount benefits. If the cardholder really needs to repay in installments, he can apply for processing.
interest-free does not mean free
For credit card installment business fees, you must be clear about it.
Banks usually charge a certain interest or handling fee for credit card installment business. If consumers encounter banks promoting credit card "interest-free installment", please be sure to understand the specific meaning, because interest-free does not mean free.
Some banks charge a certain proportion of handling fees for installment business. The corresponding rates of different installments are different. Consumers can choose to pay the handling fees in installments or in one lump sum.
When handling credit card installment business, consumers should carefully read the contract terms, especially involving handling fees, liquidated damages, etc. If necessary, they can ask the bank for confirmation to avoid high personal financial costs caused by excessive installments and ultimately causing credit damage to insufficient income.
Stay away from the vicious circle of "using cards to maintain cards"
In life, we must develop the concept of rational consumption and reasonable debt.
Rational consumption is the prerequisite for the reasonable use of credit cards. When some consumers cannot meet their consumption needs, they often apply for multiple bank credit cards to overdraft their consumption. Once their personal accounts are poorly managed, they may fall into the debt circle of "using cards to maintain cards". What's more, when credit cards cannot meet their needs, they will borrow through other channels, which is very likely to fall into the trap of illegal usury and eventually get burdened with debt.
Source: Economic Daily WeChat
