Are there any benefits to paying off minimum credit card payments?

Posted by jfghty on February 5th, 2024

Minimum credit card repayments can help us relieve immediate financial pressure, diversify funds, and facilitate future capital turnover. Is it always good to have minimum credit card payments? 申請信用卡Do you think your minimum monthly payment will not only affect your personal credit information, but also benefit you to your best advantage? Don't you think the bank would have a good plan if you had a walk-through ladder?

1. The amount of penalty interest is large

If necessary, we can choose the minimum repayment of the credit card, then the current billing information of the credit card will affect the full interest calculation. The interest is calculated based 信用卡申請on the daily interest rate of 0.05%, and they will also calculate compound interest. Since this development, the minimum payment The repayment ability of the credit limit only increases the burden.

2. Credit card limit reduction

Some people like long-term minimum credit card repayments. In fact, it is easy for the bank to think that the cardholder's repayment ability is insufficient. In order to reduce risks and avoid losses, the bank will reduce the cardholder's credit card.

3. There is a risk of overdue

Minimum credit card payments can result in more and more money to be paid back. If the cardholder does not have enough funds to repay the credit card in the coming days, it is easy to face an overdue credit card, which will attract the attention of the bank.

4. Impact on personal credit reporting

Credit cards are closely related to our personal information. The bank is very aware of our credit card usage, and it will also be recorded on the central bank's personal credit report. Although the minimum repayment amount has not expired, choosing the minimum repayment amount every month will affect the bank's judgment on personal credit.

Therefore, don’t think that the minimum monthly payment is necessarily good. Banks are not stupid and will not let you get this advantage in vain.

Related articles:

This is the correct thing to do after your credit card expires

“Quality over weight” in applying for a card? I’m afraid it’s wrong

Are there any risks in using a card to reduce your balance? All “reliance” cardholders