# What is the interest rate for credit card loans

Credit card is different from the savings card, credit card development hasthe function of overspending, therefore, in the case of insufficient capita linvestment of credit card holders, they can solve the problem by using credit card, so how much credit card loan結餘轉戶信貸評級 market interest rate? In order to be able tohelp students everyone to provide a betterunderstanding of the basics ofbusiness-related state law, to find the law net editorial compiled the relevantcontent, we come together to better understand the analysis it.

First, what is the interest rate of credit card loans

The interest rate on a loan is the interest rate charged from the borrower
when a bank or other financial institution issues a loan. The interest rate forcredit cards is calculated on a daily basis, with a daily interest rate of
0.05%. And the interest rate of the loan is calculated according to the central
bank's benchmark lending rate. Credit card loan interest = loan principal * loan
term * loan interest rate. For the specific loan interest, you can check the
loan contract, which will contain the specific loan interest rate. In addition,
credit cards have an interest-free period, while loans do not have an
interest-free period, the interest needs to be paid on time.

Second, what is the interest rate

Interest rate is also called interest rate. The interest rate is the ratio of interest to principal over a period of time, usually expressed as a percentage, and is calculated annually as the annual interest rate. The formula is: interest rate = amount of interest = principal + time = 100% interest, formally, is the owner of the money in the hands of the borrower who issues the money; on the other hand, it is the price that the borrower must pay to use the money. Interest is essentially a part of profit, a special form of profit transformation.

The difference between interest and interest rate

(1) Different legal meanings

Interest is the remuneration paid by the borrower to the lender in the loan relationship. Interest arises with the development of the credit relationship
and is the basis of credit.

The interest rate, often referred to as the rate of interest, is the ratio of the amount of interest due on the loan to the amount of the principal of the
loan. The interest rate reflects the extent to which the borrowed capital or interest-bearing capital spreads and is a measure of the amount of interest.

(2) Different calculation methods

Interest is calculated in two ways basic research methods: the simple interest method and the compound interest method. The simple interest method
refers to the method of calculating the interest amount in a calculation of the interest amount, the interest of the enterprise only by the principal, without adding the amount of interest to the principal can be constantly repeated data calculation. Its calculation is more convenient and the procedure is simpler; compound interest method refers to the interest amount into the principal and redesign the method of calculating interest. Compound interest is the method of calculating teaching that is more in line with the definition of interest of the company.

Interest rates can be divided into different types according to different criteria. According to the way the interest rate is expressed, it can be divided
into annual, monthly and daily rates; according to the way the interest rate is determined, it can be divided into official, fixed and market rates; according to whether the interest rate floats during the term of the loan, it can be divided into fixed and floating rates; according to the location of the interest rate, it can be divided into benchmark and general rates; according to the duration of the credit act, it can be divided into: long-term and short-term rates; according to the real level of the interest rate can be divided into: nominal interest rates and real interest rates.

The specific steps of the credit card loan method are as followsThe specific steps of the credit card loan method are as follows