Understanding Your Credit: Account Statement, Cut-off Date, Payment Deadlines, and More

1) Account Statement: This document describes all expenses, provisions, interests and commissions generated by the use of your Credit during a specific period; usually a month. It also informs you about the types of payment you can make, the cut-off date and the payment deadline by which you must make it.

2) Cut-off date: It is the day on which your Credit is cut off and considers all the transactions you made during the period.

3) Payment deadline: This is the last day you have to pay the corresponding consumptions indicated in your Account Statement. Failure to make payment on time may result in fees and commissions.

4) Days of period: It is the billing cycle for your Credit that begins from the day after your cut and until the day of your next cut.

5) Credit limit: The maximum amount that the company lends you.

6) Balance at cut-off: The amount you owe on the date your Credit is cut off. Includes balances from the previous period, purchases, interests, commissions, payments made, etc.

7) Interests: It is the amount paid for the use of a money loan. It is generally expressed as an annual percentage of the amount borrowed.

8) Payment required: It is the payment that you must make so that your account is up to date and does not generate interest, it is made up of the minimum payment plus the amount of fixed payments.

9) Minimum payment: The minimum amount of money you must pay to keep your line of credit current.

10) Minimum payment to not generate interest: It is the amount that is paid to settle the balance without interest cost.

11) Fixed payments: They are monthly payments established for the payment of an asset where an amount of interest is generally added.

12) Commissions: These are the fees that are generated by different services, for example: opening fee, commissions for late payments, interest rate, etc.