Find out how to read your credit card statement | banks | procedures | finance | nnda-nnlt | ECONOMY

Month by month you pay your credit card, which you use for direct or fractional consumption. However, do you know what your statement says? How much interest are you paying? What is the minimum payment? In this note we explain it to you.

MORE INFORMATION: If you want to cancel your credit card, this is what you need to know

The statement of your credit card is a summary of the movements that you have made with that card during a certain billing period. There the consumptions, cash dispositions and payments made are registered.

WHY IS IT IMPORTANT TO KNOW THE STATEMENT OF MY CREDIT CARD?

It is important to know the statement of account because it allows you to know how much that consumption is costing you, what rates they are charging you and to know up to when to pay and be responsible with the fees and, thus, not have credit history problems, explains Jorge Carrillo Acosta, finance expert from Pacífico Business School. It emphasizes that knowing the account statement in detail allows you to plan purchases and have a more organized finance. In addition, it must contain the personal data of the cardholder and must indicate at least the last four digits of the credit card.

HOW TO READ THE STATEMENT OF MY CREDIT CARD?

Next, the general terms contained in an account statement, which must always have your personal data such as your name and address.

INFORMATION ABOUT YOUR CREDIT CARD

  • Consumer credit line: the maximum amount you can use.
  • Consumer credit line balance: It is the subtraction of your line of credit minus what you have consumed.
  • Available for cash: the money you can withdraw
  • Interest rate: the interest (TEA) that you will be charged for consumption and disposal in cash. They are different.

PAYMENT OPTIONS

  • Payment of the month: the monthly consumption fee and if you have a fractional fee.
  • Full payment: the total debt of everything consumed.
  • Minimum payment: divide the debt by 36 th. They add commissions and expenses.
  • Cut-off date or billing cycle: They indicate the date range for your account statement and the cutoff date on the last day of that cycle.
  • Payday limit: when the fee is due.
  • Quotas for the next months: They tell you how much you will pay in the following months if you have made fractional purchases.

CONSUMPTION DETAIL

It tells you all what you have consumed in the billing cycle.

  • Interests, commissions and expenses: are added to each installment.
  • Previous balance: in case you fell behind in any installment.
  • Payments made: the payment of the previous fee.
5. Responsible use of the card. It is not advisable to withdraw cash from the credit card since this decision implies accepting a higher interest rate than the determined one for purchases. (Photo: GEC)

WHAT IS A CREDIT CARD?

A credit card is a revolving loan given by a financial institution. It gives you a line of credit that you can use in parts and continue to use while you pay. When you take out a credit card it is important to know which product suits your needs, what you need it for and the associated costs, such as maintenance and membership.

With the credit card you can use the money that the bank lends you and then return it (Photo: Alain Jocard / AFP)
With the credit card you can use the money that the bank lends you and then return it (Photo: Alain Jocard / AFP)

TIPS FOR USING THE CREDIT CARD

Here are some recommendations to keep in mind:

  • Use the credit card as a means of payment, as long as your financial health allows you to pay at the end of the month.
  • Do not use it for purchases that you cannot finance.
  • Because the rate is high, only use it in situations of dire need for financing.
  • Take advantage of multi-month promotions without interest.
  • You take advantage of the promotions that give you travel points and other benefits.
  • If you are going to use the minimum payment, let it be as a last resort because the interests are higher.

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