Difference between the minimum payment and payment to not generate interest

The credit card It is a financing method that allows you to access different financial products. In this note we tell you what is the difference between the minimum payment and the payment so as not to generate interest. This will help you save money.

When asking how a credit card works, we must know what a line of credit implies recurrent, in which there is a court monthly, where you can see purchases, cash withdrawals, payments, fees, commissions, interests and VAT in the period. However, there are two amounts that you should keep in mind.

Take into account the cut-off and payment date || Source: Pixabay

Minimum pay

This is the amount you must do as minimum so that your line of credit continues valid and you can keep using it. However, doing this implies that interest charges are generated according to the agreed rate, and that increase the VAT of the real interest. With this, paying the minimum increases the time to pay the loan and increases the final cost.

Each bank establishes the minimum payment you can make for your credits, and it is included if you are paying goods to months with or without interest.

By paying only the minimum, you will pay more than expected || Source: Pixabay

Payment not to generate interest

It is the payment amount as a total of the balance debtor of your credit card, also discounting the balances in plan of fixed payments, months without interest or promotions immediate cash.

If you pay this amount within the established period, the card will not generate interest charges. You must take into account that the provisions of cash yes they charge daily interest until its liquidation.

Now, you should know that the cards have their court on the same date (If your cut-off date is the 10th of each month, it will be there, regardless of the day it falls), so a day later you will be able to know how much ascends the minimum payment and the payment not to generate interest. You will have 20 calendar days to do either of the two options.

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