In this sequence of related articles now is the turn of the rates and costs of the credit card. I am sure that we have already understood that the cards undoubtedly play a very important role in the daily life of most people, as well as demonstrate the lifestyle of its owner. It is also worth mentioning that in the last decades the check and cash in kind has been exchanged by credit card by most of its users.
The personal credit card provides financial convenience, helps its holder in the organization of finances and saving money by participating in the benefits and promotions as points offered and for example: Smiles, points for discounts in stores accredited to the administrator, etc. The card is also used by many as a symbol of social status and ostentation because of its classification by user profile.
With all this, the holder of a Visa, MasterCard, AmericaExpress, Dinners and Hipercard is obliged to know the charges and costs of the credit card charged by each operation, and the extra charges that are applied when acquiring it. Some credit card fees and costs are more common and known, but others not so much and you need to know what they are.
What are the limits, fees and costs of the credit card?
We will see all these details about how credit cards behave related to costs, fees and limits available from this point. You can spend the virtual money that exists on your credit card only up to the default limit. The limit is set by the credit card issuer and depends on your payment history and declared income.
Credit Card Statement or Invoice
A monthly statement or credit card bill is generated for the holder every month that plastic is used. The invoice is an extract that details all transactions made using the card in the month prior to expiration. The invoice also shows the outstanding credit card balance, due date, minimum payable and other important details.
Charges and Annuities
Credit card companies charge a membership fee when you receive your credit card. Sometimes, credit card companies may waive this charge for the annual fee for a certain period – usually the first 12 months.
Some offer a “Lifetime Card” that never charges annual fees. The approximate membership fees are between $ 180 to 3,000 – depending on the type of credit card. Sometimes, upon request, banks or credit card companies may waive annual fees based on their monthly expenses.
Second way or charges for loss
The monthly invoice is delivered free at your address or email. But there are cases where physical delivery of the hard copy of the card is charged.
In case, if your credit card gets lost, you need to pay to have the replacement. Even the use for withdrawing money at an ATM using your card may be charged. Remember all of these fees differ from manager to manager.
Minimum payment amount
You must pay a minimum amount due for each billing cycle. This is usually 5% to 18% of the outstanding balance. If you continue to pay your invoice debts in the minimum amount, your card at a time can no longer be used for any type of financial transaction due to lack of balance.
Partial Invoice Payment
If you do not pay the balance of the monthly invoice in its entirety each month, then an interest is charged on the remaining amount. The amount of interest varies from administrator to administrator. If you pay at maturity, no interest is charged to the invoice.
Rate of services and conveniences
The expenses you make through your credit card are subject to service tax. The tax on the service is according to the total amount of credit, for purchases abroad the IOF is 6% plus other charges.
Fines and extra interest rate
Banks or credit card companies employ billing consultants to recover outstanding or defaulted amounts. These charges are charged to offset the expense incurred by the issuer of the bank or the credit card in collecting the outstanding amount.
Reward points accumulated over a period of time can be redeemed for money or air miles depending on the reward points program.
Foreign currency transaction
In case, if you travel abroad and use your credit card for transactions, the same amount of the transaction is converted into reais and a certain percentage of that amount is charged by the bank or credit card issuer plus the taxes for use in the transaction. outside.
You have realized that you need to know everything about your credit card and that it is almost like opening a small business, so be wary when you have one or more cards in your possession. Good luck!