At present, China Construction Bank initiates a new service of installment for consumption by means of using Long Credit Card, which enlarges the payment ways to repay the debt after using credit card firstly.

In terms of Long Credit Card Installment Service, cardholders can request this application to CCB 2 days later after using card, and after CCB’s approval and paying certain fees, applicants can have access to this service by paying back the principal per month within the appointed period. And cardholders can apply two and more this kind of loans. Now, the floor of this loan is RMB 1,000, and the ceiling is the card’s credit line. CCB offers 3-month, 6-month and 12-month installment, with the rate for fees per month as follows: 0.70% for 3 month, 0.60% for 6 month and 0.60% for 12 month.

Since the first launch of CCB Long Credit Card in August of 2003, CCB has been focused on customers needs and continuously improved its functions and services in line with international best practices. The initiation of credit card’s installment service which is a brand-new product of wealth management will help improve cardholders living and ease their pressure in finance.

Attached: Promotion Profile:

　　　　　　　　　　　　　　Promotion Profile

Comparison between consumption installment and revolving credit
　

Revolving credit refers to the revolving usage of line of credit of the credit card. If cardholders can refund /repay (including the minimum repayment) in time after the use of the line of credit, he can reuse without applying before the usage next time. Revolving credit is the fixed property and main function of the credit card. It brings great convenience to the cardholders.

Interest of the revolving credit: every consumption sum in previous bank statement is the principal. From the day of registering account records to the day of pay-off is the accrual day. Revolving credit rate follows the standard of People’s Bank of China. Daily interest rate is 0.5‰. Compounds interest should be paid in the month.

In order to make the calculation simple, let’s take the following two cases for examples:

（1）There is only a consumption of RMB 6,000, and no follow up ones.
（2）If the cardholder uses revolving credit, the average accrual date is 30 days, and the rate is 1.5% of the monthly rate.

Case One: The cardholder bought household appliance, which is RMB 6,000, by card. As too much consumption in the past 6 months brought some finance pressure, he/she can only repay RMB 1,000 every month to the bank. Then, the cardholder can choose to apply for revolving credit or to apply to use installment payments in 6 terms:

1. When the cardholder uses revolving credit, all the interest payment is about: 6,000×1.5％＋5,000×1.5％＋4,000×1.5％＋3,000×1.5％＋2,000×1.5％＋1,000×1.5％＝315 (RMB)

2. After the successful application of installment payment in 6 terms, all the commission charge is: 6,000×0.6％×6＝216 (RMB).

In this case, it is a better way to choose 6-term installment payment.

Case Two: The cardholder bought household appliance, which is RMB 6000, by card. As too much consumption in the short-term period brought some finance pressure, the cardholder cannot repay the sum before the day of pay-off. But after the payoff day, he/she can repay the arrearage soon. Thus he/she can choose to use revolving credit or installment payment in 3 terms. (3-term installment is the shortest installment payment CCB applies):

1. When the cardholder uses revolving credit, all the interest payment is about: 6,000×1.5％＝90 (RMB).
2. After the successful application of installment payment in 3 terms, all the commission charge is: 6,000×0.7％×3＝126 (RMB).

In this case, it is better to choose installment payment.
　　

From the above data, the different characteristics of the service can meet various customers’ needs. Consumption installment payment, a really new service, provides a really pleasant way of using card to those who have repayment pressure in a long period.
　

Consumption installment payment makes using card more and more pleasant and convenient way of consumption. That is the most remarkable point of it. Furthermore, the increasing credit card service requires the cardholder to keep a long and good credit record. The cardholder can enjoy the improved service, which only needs some attention to the amount of overdrawing and the repayment in time. The cardholder should keep good habit in using card and avoid leaving any bad record. Otherwise it will bring some trouble when in emergency someday.

Every new service provided by the bank is a kind of promotion not only to its own management but also to everyone’s life. The acceptance, comprehension and application from you can bring unexpected changes to your life.

Case 1：

Mr. Q, 28, clerk, Line of credit: RMB 6,000

Mr. Q has been using CCB credit card for a long period. To use the card makes an easy life. He needn’t carry lots of cash all the time and can overdraw occasionally. Few days ago, he found a really fashionable mobile phone, which is his favorite. He didn’t think for twice before he paid by card. When he came back home, he found that the expenses during National Day and the mobile phone made the payment a little bit hard. In this case, installment payment of CCB gives Mr. Q a great help. Two days later after the consumption, Mr. Q can apply for the installment payment to the bank. He can pay by installment and even the charges can be reduced to the acceptable rate. It does make the repayment become easier. Because the option has double worthiness, Mr. Q’s consumption by card will not get any effect.

Case 2:

Mrs. M, 45, Civil Servant, Line of credit: RMB 15,000.

Mrs. M has been using Dragon Credit Card for a long time. But she still doesn’t get used to consume by card. She said the card was just for some unexpected cases. Recently, she wants to send her niece, who is going to get married, a good present. The time saving accounts of hers are not matured. The drawing ahead of maturity is not only a kind of losing of interest but also a kind of trouble. Then Mrs. M thinks of her card. In fact, she took a fancy to one type of color TV in some shopping mall, which costs more than 10,000 RMB. The installment payment for shopping has appointed shopping mall. She was a little troubled about that. The credit card installment payment from CCB gives her a help. Having no appointed shopping mall allows Mrs. M to choose any commodities she likes. It makes choosing commodities and credit card consumption become easier and much more convenience than ever.

FAQs:

Q: Is there any difference between consumption installment payment and other installment payment?

A: Consumption installment payment is different from mail order installment payment. It has no appointed commodities. It is different from POS installment payment in shopping malls. It has no appointed merchants.
　

Q: There are lots of other installment payment services. Is there any difference of the new service provided by CCB?

A: The double line of credit in the installment payment provided by CCB has no any effect on the daily credit consumption.
　

Q: Can I apply for two or more consumption installment payments at the same time?

A: Within the line of credit, the cardholder can apply for two or more consumption installment payments. But every consumption installment will pay installment commission charge according to the principal monthly. And cannot reapply those applied consumption installment payments
　　

Q: Is there any limit to the sum and terms of the consumption installment payment?

A: The floor of every consumption installment payment should be RMB 1,000. And the ceiling is your line of credit. The services CCB provides at present include terms as 3 months, 6 months and 12months consumption installment payment. The cardholder can choose any of them according to their own requirement.
　

Q: Can I apply to complete the repayment ahead of schedule? And how much should I pay for it?

A: If the application is because of the return of the commodity, all the principal should be repaid before next date of repayment. The paid commission charge will not be returned. If the application is because of the cut of the repayment time, the rest principal and mission charge should be paid together before next date of repayment.

Q: What kinds of qualifications are needed for the application of consumption installment payment?

A: The followings are some requirements for that: having been a Long Credit cardholder for a certain period; all the accounts are good; card use and repayment record are perfect. Moreover, house and car purchase, lottery and gold trade are not in accordance with the application.

For more information, please dial 800-820-0588 (CCB) for inquiry.