I Do Not Understand This Statement Please Clarify
Many people use JD Finance, and one of their products is the "BaTiao FenFen Card." As soon as you use it, interest is calculated on a daily basis—interest starts accruing the next day, which is worse than credit cards because there’s no interest-free period. The effective annual interest rate is 26% or even higher, but since most people repay their BaTiao balance monthly, they often don’t notice.
I personally tried it once and canceled immediately after losing just 1 yuan in interest fees. Now there’s another victim who used it for years and recently discovered they’re being charged nearly 10% interest on their monthly bill (for example, if last month’s bill was 16,000, the interest was about 1,600—that’s terrifying).
Of course, if you argue with customer service, you can usually recover part of the interest charges. Most people don’t know this, but in most cases, about 80% of the interest fees can be recovered.
If you’re looking to invest, consider JD Finance—it’s a very solid lending company. That’s also why major banks are gradually downsizing their credit card departments, replacing them with large automatic installment products. (Be careful to distinguish these when you receive invitation calls.)
For ordinary consumers, I recommend canceling all automatic installment products. Regular credit cards are fine—interest traps only arise if you proactively choose to split payments. Automatic installment products hide numerous interest traps, and many people accidentally end up with consumer loans carrying interest rates above 20%.