One of the most common charges is compensatory or financing interest. This happens when we make a purchase in installments. In some cases it is even more expensive than requesting a personal loan. That is why the best option is to select installments without interest or reduce the amount of installments so as not to accumulate high expenses for many months that later become difficult to pay.
Another interest to take into account is the punitive interest that is applied when there is a payment default by the user. They must be avoided, since they are higher than the compensatory ones. Finally, there is the interest on cash advances and it is applied when we use the credit card to withdraw money from an ATM. In this case, it is advisable to use MODO, transfers or debit card and when withdrawal is necessary, do it at the bank of origin.
One of the key tips is to pay the card on time to avoid paying interest or financing costs. Another point to keep in mind is to make purchases on the closing date of the monthly cycle to be paid, generally the 28th, 29th, 30th and 31st of each month. This allows you to “kick” for the next month the purchase.
Something important is to confirm the next due date, this allows you to organize expenses and have enough money in the bank when it comes to paying. Therefore, it is recommended to change the payment date if necessary, for the first 10 days, which gives a certain “changüí” when paying the total summary.
Finally, the most important: the minimum payment. It is the payment that yes or yes we must make before the current expiration date, otherwise the card can be blocked. The minimum payment is equivalent to 4% of the total amount spent in the period. In case of canceling the minimum, interest will begin to run above 100%, which will increase the account at the next due date. That is why it is not recommended to pay the minimum of the card, but the total because once the ball “grows” month after month, it becomes more impossible to pay it.
Source: Ambito
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