Avoid making minimum payments or taking installment plans or consumer loans
Making minimum payments is not a discount — it is essentially a daily‑interest loan that works out to roughly 18% per year. Once you use this option, the interest‑free period ends immediately, and the unpaid portion of the balance accrues interest from that point onward. Always look at the annual percentage rate when comparing offers; regulators now require issuers to display this figure prominently, rather than just the daily rate. The minimum rate is exactly 0.7 times the maximum rate.
No cost at all. You must keep enough cash on hand to pay t…
Before 2020, credit‑card interest rates were capped: the maximum daily rate was 0.05% and the minimum was 70%…
No cost at all. You must keep enough cash on hand to pay the full balance by the due date. The hard part is resisting the urge to spread out large purchases via installment plans.
Before 2020, credit‑card interest rates were capped: the maximum daily rate was 0.05% and the minimum was 70% of that cap. At 0.05% daily, the annual simple interest rate comes to 18.25%. Starting in 2021, issuers and cardholders can negotiate rates freely. After opting for minimum payments, the unpaid balance continues to accrue interest daily while the interest‑free period is lost. Authorities now demand that issuers clearly show the annual rate; you should base your decision on this figure alone (China, 2020 notice).
中国人民银行 (2020). 关于推进信用卡透支利率市场化改革的通知（银发〔2020〕327 号）. https://xining.pbc.gov.cn/zhengwugongkai/4081330/4406346/4693549/4159909/index.html
Open source linkThe 18.25% figure results from multiplying 0.05% by 365 without compounding; the actual rate would be higher if interest were compounded monthly. Some banks offer discounts, but you must refer to the annual rate listed on your own statement. If you truly cannot afford the payment, seek a lower‑rate loan from a reputable lender rather than letting minimum payments pile up.