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.