How much should you pay on credit card?

How much should you pay on credit card?

What is a credit card and how does it work?

We’ve all had a credit card at one time or wanted to start using one. And it’s only natural because credit cards are financing instruments that offer benefits such as payment flexibility and immediate access to cash.

Today, “plastic money”, as it is also known, is welcome in most commercial establishments of all categories: hotels, restaurants, travel agencies, among others, so shopping has become an experience without limits and possible for everyone.

It is a monthly or quarterly fee charged to the customer for having the card and accessing all its benefits. If you want to know more about this subject, go to the web page of the Financial Superintendence www.superfinanciera.gov.co where you will find comparative tables of the main costs charged by credit establishments in savings accounts and credit cards.

They are all those charges for the operations that are carried out when making use of the wide range of products and services provided by the bank. They can range from consultations of financial movements, using the audio line, and everything related to withdrawing and transferring money by any means of the bank. It is important to compare the costs of financial institutions since not all of them charge for the same concepts, nor do they have the same rates.

What is a credit card used for?

Credit cards are a payment tool offered by different banks and non-banking entities (stores, appliance stores, etc.). And one of their great benefits is that you can use them to make payments in many stores in your city.

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One of its most important features is that you have a monthly amount available to make purchases of goods and services, where you also have the possibility to finance (divide) in installments the payment for the purchase of goods and services.

The purchase or credit limit that you are granted in your credit card is defined according to your income and your financial behavior with banks. There are even nowadays some prepaid credit cards where the purchase limit of the card is defined according to the money you deposit in it. In these so-called “prepaid” cards, unlike traditional credit cards, when we spend all the money we deposit, we need to deposit money on them again to use them again.

How long does it take to pay off a bancomer credit card?

Despite their wide acceptance, for many consumers their use ends up becoming a headache. Their advantages are clear: they make it possible to dispense with cash and pay for purchases in installments, i.e., they are a means of instant financing. But getting into debt (every time you use a credit card you assume a debt) has its risks if not done responsibly.

Paying the supermarket purchase on creditFractionating the payment of the supermarket purchase, paying the gas bill in installments or making a credit transfer from the credit card to the current account to pay the mortgage bill is a mistake.

The experts recommend not to finance the recurrent expenses of the day to day and not to abuse the credit of the cards, since its cost is high (the average interest that they charge is 17.91%) and because if one resorts to them to finance the expenses of the day to day, the possibilities of ending up over-indebted are many, explain sources of HelpMyCash.

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If, for example, a customer uses the credit card to pay the monthly mortgage payment, the following month he will not only have to pay a new loan installment, but he will also have to return part of the balance on the card with the corresponding interest. An unsustainable situation in the long term.

Credit Card

A credit card is a means of payment that allows you to make purchases and pay for them later. It is “credit” because the amount of money you use when you make a purchase corresponds to a loan granted by the financial institution.

With this product, the entity authorizes you to use a certain amount of money for the payment of goods and services, this amount is charged by the business and then your bank sends you a statement notifying you of the value of the product or service you purchased, the interest rate that will be charged and the respective associated charges.

Economic intelligence is a popular term that refers to the responsible and coherent use of resources, and if it is a credit card, choosing the right one according to your lifestyle can bring you numerous benefits.

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