Is credit card your best friend when your budget is tight and you have any financial problems? Or are you one of those who breaks the limit almost every month? It is very important to understand well how it works, so today MoneyCo explains a little more about this product:
Setting the credit card limit
When the customer applies for a credit card, the bank analyzes personal and financial data, including personal income. This enables the bank to identify the payment profile and thereby establish the credit card limit value.
What fees are charged
With CMN Resolution 3,919 / 2010 , the Purewise Bank established 5 basic credit card rates – the card that has no reward and / or loyalty program:
- Annuity: She is paid once every 12 months. Financial institutions have the option to split the amount over the year
- Emergency Credit Rating: When the credit card limit is exceeded, you will be charged
- Bill Payment: When you use your credit card for bill and bill payment, you pay an equivalent fee for using
- Withdrawal: Customer pays a fee when withdrawing available card limit
- Card duplicate: In case of loss or theft, the customer pays an amount for a new issue of the plastic
Understanding Credit Card Invoice
Suppose that from the total invoice ($ 600), you decided to pay only $ 200. In this case, your limit for next month will be $ 400 + $ 200 = $ 600 . That is, the amount you paid will be added to the limit left. The remaining balance you no longer pay ($400.00) will come on next month’s invoice with the addition of interest, which is called revolving credit.
What if I don’t pay the bill?
The amount you spent for the month will come to the next invoice with interest added. The limit available for next month, in this case, will be $ 400 . Be careful when you choose not to pay any amount on your bill, as the revolving credit interest rate (learn more here in Brazil is one of the highest, over 449% per annum! If you can not repay this debt, it can turn a snowball out of control.
Comparing Card Rates
To find the best rates, it is important to research the amounts charged at each institution. Here’s where to search:
- Roslan Association of Credit Card Companies and Services (Abecs) : Card Rate Comparison
- Purewise Bank : Disclosure of all interest rates charged in Brazil
- Roslan Federation of Banks (Febraban) : You can consult the rates and annuities charged by financial institutions
Looking for help paying off your revolving credit card? MoneyCo’s lending follows the non-payroll-deductible personal loan facility. Total Effective Cost may range from 2.79% to 5.26% per month , depending on customer credit analysis and installment option. Send us your credit proposal today! We can have the right loan for your pocket!