The cancellation of credit card installment

repayment

The cancellation of the credit card installment referred to the acceleration of the installments repayment. Suppose a transaction processed by the method of repayment to be 12 months, then after pay for 6th, cardholder intends to cancel or speed up repayment installments.

The Advantages of installment cancellation

The limit of the credit card can be used again.

With cancellation repayments then automatically credit card limit will return after payment. The limit has been out of the clotting system conducted by the bank of certain number of transactions that have not been collectible.

Suppose that for transactions of Rp. 1.200.000 with installment payment method of 12 months 0% interest. Then on the first of the month prior to the payment of the funds will be frozen and cannot be used in the amount of 1.2 million. After payment of the first installment, the funds are frozen will be reduced and a hundred thousand can be used. 

For example when it is the sixth installment then the funds still frozen lived 600 thousands more. Well by doing cancellation repayments then the funds are frozen will be issued and will be charged full in the next bill printing.

The installment interest will be stopped

Suppose transaction Rp. 1,000,000 installment payment method with tenor 12 months with an interest rate of 1%. In other words, interest amounting to 10000 per month. When the payment is already done as much as 1 time then for 11 more months there will be the addition of flowers of 10000 plus repayments of principal. When cancellation or repayment of mortgage acceleration then be billed only once the interest-only i.e. amounting to 10000 plus the rest of the repayments in principal plus penalty.

The Lacks of cancellation credit card installment

Charged for penalty

Almost all bank credit card issuer has a provision billing penalty for any cancellations repayments. Charge of penalty is different on each bank. For some Banks the amount of penalty charge is 200 thousand Rupiah.

Suppose transaction Rp. 1,200,000 with installment payment method of 12 months 0% interest. Repayments are dismissed after paying 6 times. Then there is a six month unpaid installment or about 600 thousand. Then when done accelerating repayment of the installment repayments or cancellation, the total that will be charged is 600,000 + 800,000 = 200,000.

For special cancellations repayments on BNI should, preferably installment need not be cancelled when it is almost done, because the cost of pinalty. Unless there is a strong reason.

For Bank Mandiri, the acceleration of the repayment instalments subject to finalty by 5% from the rest of the repayments of principal. So suppose when following the example question above. The Pinalty will be charged is 5% x 30000 = 600,000. Then that will be billed when the accelerated installment are 630,000.

Calculation of credit card repayments Cancellation.

The rest of the principal repayments +one month interest + penalty 

For installments with 0% interest,  the formula is Principal Repayments + Penalty. (like the example above)

How to request cancellation of credit card repayments.

Cancellation process can be done by contacting your Bank or your bank call center. To request be made reports for payment of installments. The cancellation of the mortgage will usually be mouse-button with the SLA up to 5 working days 7 working days. After the settlement transaction is canceled, then all bills will be printed as a nominal Bill full on print.

Conclusion of cancellation credit card installment

• Be subject to penalty of conditions set by the bank.
• Interest will be collectible is one time only.
• The cancellation process can be done by calling the call center