Paying your credit ahead of time saves interest, since if it is done before the cut-off date, the amount used by the bank is less to calculate how much interest you owe
In the program #BancaExplica of April 22, https://bit.ly/3nbkXrQ, by Victor J Alcocer Arredondo, the theme of “Know the concepts of your credit card statement, pointing out that in order to maintain good financial health, and therefore a good credit history, it is important that you pay your credit in the stipulated times and according to the ordinary interest rate, thus avoiding penalties derived from non-compliance, such as late interest and expenses. of collection, plus its corresponding Value Added Tax (VAT).
To achieve the above, he highlighted the importance of credit card statement, because it serves to make payment decisions and understand their impact on the cost and duration of the debt; contains information to know the associated costs (commissions and interests) of the product; makes transparent the importance of paying or settling on purchases with immediate or future expiration; It allows you to compare costs between different cards and make better decisions on use and payment, as well as Avoid getting into excess debt.
The specialist pointed out that each bank has its own Account Statement Format but in general they show your personal information, such as name, address, customer number. In addition to when it must be paid, by identifying the period and dates, cutoff, days of the period. How much has to be paid, showing the payment concepts, the minimum to be paid, so as not to generate interest, at least more months without interest. How much they charge you by identifying the associated fees and costs, ordinary interest rate, moratorium, CAT. The summary of previous balance movements, purchases, payments, VATs, commissions charged, current balance.
He also detailed lor more importantly on your statement, corresponding to Period: These are the credit financing days and are normally 30 days. Cutoff date: It is the day on which the bank makes the sum of all your payments and purchases for that month. Deadline: It is the last day to cover the debt to your card without generating commissions or interest. Minimum payment. It is the minimum amount to cover for your card to be considered current. The minimum plus Months without interest. It is the sum of the amounts required to do it partially plus the minimum payment. The one to be done not to generate interest: Amount that the client must meet in order not to be charged interest in the next period.
Alcocer Arredondo highlighted that Paying off your credit early saves interest, since youIf it is done before the cut-off date, the amount used by the bank to calculate how much interest you owe is less, so it is saving interest that would have been met after the cut-off date; furthermore, it is even better to pay off the debt in its entirety because in that case there is no interest to be satisfied at all, noting that the people who meet their full debt on each cut-off date are called “totaleros”.
In the event that the balance bears interest, It should be known that the Ordinary Interest It is the percentage that the bank charges for not paying off the total of your balance when the payment deadline arrives. The Total Annual Cost (CAT) It is a standardized measure that must be published in the statement of account. It incorporates all the costs and expenses inherent to credit and it helps you to compare it against other banks. The default interest It is the amount that your bank charges you when, after the payment deadline, you did not make the minimum payment indicated on your account statement.
In section pTo settle your account, se shows the estimated time in number of months that it will take the client to finish paying the unpaid balance (debt) as of the cut-off date; This calculation does not consider purchases in months without interest or with a preferential interest rate; and considering that it is not in default and does not make additional purchases or dispositions.
What are deferred payments?
They are purchases that are made through a scheme that helps you acquire what you need, without being undercapitalized, since the total amount is divided by the number of monthly payments, which means that your ability to pay is only reduced by one percentage.
What additional services do credit cards have? They correspond to the following items: Rewards Program. Medical assistance. Protected purchase insurance. Luggage loss insurance.
Given this, the member of the Abm Commission pointed out the basic rules for using your credit card
Find out about the costs and fees of the credit card.
Use it only to finance yourself within your own budget.
Liquify it every month or pay at least the minimum they demand.
Do not abuse the minimum payments, you can over borrow.
Know the information on your statement well.
–
