What do you do when you don’t have cash to buy? Have you ever wondered how people did shopping before credit cards became popular? They used cash, in case if they didn’t have the amount they needed they had to save until they had the amount to buy. Still others used checks. Yes, did people use checks, an old-fashioned article that has yielded a lot of fraud around the world, or have you never heard of the famous “bad checks”?
There are people who never even had a checkbook, nor would they know how to fill one of these today. But, in fact, things evolve they end up carrying the burden and the bonus, in which case even the credit card has its own.
Credit cards are a form of payment offered by financial institutions.
They give a credit limit to a specific CPF based on information such as whether the name is clear (it does not appear in any delinquent register) and the monthly income of that person. With this credit, the individual is able to buy at once or in installments something that he will only pay on the due date of the invoice. In other words, this “credit limit” is a money that you are borrowing and will return a few days later or a few months later.
This is, without a doubt, the big advantage of the credit card: you don’t have to wait to buy something that you don’t have money yet. Major banks today also have loyalty programs linked to their card. What does that mean? That when using your credit card to make purchases you can collect points to exchange for travel miles or to enjoy other benefits such as the redemption of exclusive products and services.
But at the same time, it offers one of the highest interest rates on the market for bad debtors, which brings us to a great disadvantage. If you don’t know how to control your spending and stay within your budget, debts will come.
How does card bill closing and interest rates work?
The invoice closing day is probably one of the most anticipated days of the month. It is the moment of transition when your expenses are accounted for and the limit is released once more for your use. That day will depend on the expiration date you choose. In general, expenditures made between 5 and 10 days before the invoice’s due date is already entered into the following month’s accounts.
There are even people who call this day after the closing of the invoice “good day” to buy, since what you buy from that day only appears on the invoice for the following month. About interest, you may still have some doubts … for example, will you always pay interest on your credit card? No, they will only be charged if you delay the invoice payment day or do not pay.
What interest is that that can be charged by the card?
There is a charge to those who pay the minimum amount of the invoice, which is an option offered to those who do not have the money to pay the entire bill, so pay a stipulated amount. This can vary from institution to institution. The remainder that has not been paid will receive an application of this interest, which financial institutions call retroactive credit.
This is one of the highest rates that consumers pay today in the market. But, it can be even worse. Stay on top of bank portability and how you can benefit If the payment made is less than the minimum established by the invoice, in addition to the retroactive credit interest, you will still pay a fine of 2% and interest of 1% per month on the amount of the debt.
How to get organized?
Being a good payer can give you confidence in the financial institution that you have a credit card. Many people wonder how to increase their limit, but there is not much mystery. Always pay the correct invoice, avoid delays and keep a high Serasa score.
Not always having a high limit is a good thing, especially if you already have previous problems with card debt. It is good that you have it there for security, but it is not because your limit is $ 20 thousand dollars per month that you need to spend everything.
Always focus on your financial control and your monthly budget.
As much as you make a few beaks and earn extra money, don’t count on it every month because you can fall in the minimum payment of the card and pay dearly for it. Write everything down on paper, see if the installments fit within your salary. Ideally, your card limit (even if it is what you allow yourself to spend) does not exceed 30% of your family income.
Make this account and see how much you would be allowed to spend per month.
Did that information come too late for you? Need to renegotiate a debt? Know that you can evaluate the advantages of choosing a personal loan to solve this pending problem instead of being at the mercy of very high interest on your credit card.