Archive for the ‘Credit Card’ Category
Summary of Credit Card
When we get the monthly statement credit card, we often encounter difficulties when trying to understand the charges, fees and deductions that we may have. Let’s see a compendium of the most common terms that can be found in our summary:
Cash Advance or Cash Advance: It is known that with our credit card can apply for a cash advance at an ATM (ATM). In this regard the term. Interest rates for cash advances are usually substantially higher than for the financing of purchases. It is worthwhile finding out the rate before applying for cash, to avoid as far as possible, and keep track of interest rates applied to the total cancellation.
APR / Annual percentage rate or APR / annual average percentage rate: the average rate used by banks for the interest they charge. The fees apply credit card issuers can not exceed those provided by banks.
Financial Charge or Finance Charge: is the interest charged by the issuers of credit cards for payment in installments. Finance charges are calculated using different formulas depending on the credit card question. Usually it is a fixed percentage of the TPA.
Credit limit or credit limit: the maximum amount of money we spend paying by credit card. Usually this limit is related to income, but sometimes you may request an extension.
Over-the-limit-fee or charge for exceeding the limit: if we make purchases over our credit limit permitted, we usually charge a fee on excess. It may be a fixed amount or a percentage of the TPA.
Miscellaneous Fees: often find unspecified charges or are not finance charges. May be, for example, many insurance companies to charge credit cards automatically. If you find one of these charges for a service not requested, immediately call the company or bank and ask for the cancellation, if you want to keep. In the contrary, will be charged automatically every month.
Tips Manage Your Credit Card
The benefits of using credit cards are many, but only if you use it wisely! Review our tips for keeping control over the funds from your card.
1. Get to know your card. You are always aware of your annual fee, the exact interest rate and any cost to be added for late payments or exceeding your credit limit. This will help avoid any unpleasant surprises in the future!
2. Always pay attention to the letters you receive from your credit card company. If you have had an account for a long period of time need to be aware of any change in its terms and conditions. If you do not pay attention may be months before you realize they have increased their interest rates.
3. Strive always to pay the full balance of your credit card every month. Minimum payments can be a dangerous trap and should not be viewed as a recommended plan of payment! You will take longer to pay off debt and cost you more.
4. Always leave enough time for your payments reach your account. Remember that the funds may take several days to be canceled and that a late payment will result in extra costs to your card and can affect your credit ranking. Controls the monthly statement to get information about how long to leave.
5. Monitors the payment due date each month. The credit card companies often have the nasty habit of suddenly changing the date. Must have been right to pay on day 21 of the last four months but the next month might be payable on 15. Also pay attention if the due date falls on a Monday since the weekend delayed the payment process considerably.
6. Before you buy something with a credit card ask yourself if you can really afford. When you’re on vacation or having fun is very easy to think of credit card like silver available! Be honest with yourself. If you do not think you’ll be able to pay the entire amount to make ends meet, do not buy it!
7. If you’re thinking of making a large purchase by credit card must first investigate other cheaper alternative loan such as personal loans. Credit cards work best for small purchases and short term. Read the rest of this entry »