The invoice came and with it the interest. Surely last month you must have gone through some setback. Late payment, debt installment or minimum payment, see what interest is charged to your credit card.
As we mentioned in another post, if you only pay the minimum invoice or anything other than the total, you get revolving credit. Now, if you are late with paying your credit card bill, you can pay up to 2% penalty, plus late payment interest, which can be up to 1%. If you have paid your bill, it will depend on the card company, but this fee is usually very high, so always avoid financing your bill. Read more about credit card billing due date.
Interest rates are usually one of the highest in the financial market
Stay tuned! Card interest rates are usually one of the highest in the financial market, and may exceed 300% per year. Look at this example:
Suppose the monthly interest rate on your revolving credit is 12% and your credit limit is $ 800. In a month you use all your limit, however, you can only pay the half of the amount ($ 400). Adding all the interest, on the next bill, surely you will not only pay the remaining $ 400.00, look at why:
- Remaining invoice: $ 400.00
- Revolving credit interest: $ 96.00 (12%)
- Interest due on delay: $ 16.00 (2%)
- Default interest: $ 8.00 (1%)
- Total bill for next month: $ 520.00.
Always keep track of your invoice and know what you are paying. Planning is essential for anyone who wants or already has a credit card.
What can be charged to the card?
Do you know the difference between rates and interest? We can quickly say that interest is charged when the customer defaults. As in the above cases, pass the invoice payment day, pay the minimum, etc. The fees are pre-established when the contract between client and manager is made. See what fees may be charged:
- Fee for issuing the duplicate card
- Card withdrawal fee
- Card billing fee
- Rate per request for emergency credit limit assessment.
If you have any questions or suggestions, leave them in the comments, see you next time!