Do you benefit from giving your credit card minimum payment?
At the end of the month, your credit card was cut and when you enter the web portal, your bank requests the minimum payment, but what is better for you?
Is it much more beneficial to pay the minimum amount or not?
This situation is very common in the history of every cardholder, since there are many factors that influence the correct handling of a decision on this issue that certainly seems complex, but it is not if you are properly informed.
Therefore, today we bring you valuable information so that you know how you can easily take advantage of your financial instruments, and if you should give the minimum payment to a credit card , or if such action instead of helping you would harm you.
But, first of all, what is the minimum payment? This is the amount that your bank calculates on the total balance of your TC, which generally ranges between 2% and 4%, so that you can pay monthly fees that are more comfortable for your financial situation.
In this way you could surely buy those expensive shoes, or enjoy an exquisite dinner in a restaurant, travel comfortably or even, go to the cinema in a VIP room.
We invite you to watch this video that explains in a simple way how to use a credit card.
This tool is definitely functional, but Beware! It is convenient to attend this instrument and be aware of the monthly payments. The minimum payments are very easy to cover, which would make you believe that you keep your personal finances in total control.
That said, you can answer the following question: Are you one of those who pay the minimum to credit cards ?
If you answered yes, it may be time to change that modality, since actions by the client such as paying much more than the minimum amount or even paying before the monthly cut, generate a good credit history, in addition to always keeping your credit line available for a future.
Therefore, it is obvious that, by executing actions other than these, such as paying the minimum, delaying your monthly payments, among others, they will become negative elements for your bank reputation.
You should understand that, by paying only the required monthly minimum, your bank could generate more default interest, so your debt will increase for much longer, this is something you should definitely avoid, since in the short term it would create dislikes and frustrations.
For example, the Bank gives you a credit card, which, according to your use, allows you to maximize your performance.
But you must be aware of the calculation made by this entity for the minimum payment of credit card . Next, the calculation in three different ways for minimum payment according to the Condusef:
- 1.5% revolving debit balance at the cut-off date, plus interest and VAT.
- 1.25% for the credit limit plus interest and VAT.
- If the minimum payment is greater than the unpaid balance (part of the debt not covered by the established date), the insolute may be charged.
How to use the minimum payment?
It is not about never paying the minimum on your credit card, just remember that, in doing so, it would affect the possibility of accessing other types of credits.
But we know that at certain times and due to various reasons, you will not always be able to pay more than the minimum, in this case you can execute a credit that does not affect your rating in the Credit Bureau, only do it in specific cases that definitely require it.
On the contrary, if you have the ability to pay more than the minimum required, try to increase the usual percentage so that you finish your debt much faster and your bank considers you for a new line of credit.
How to take advantage of the minimum payment?
The first thing you should do is get out of your head to pay only the minimum to your credit card , this action will not produce positive effects or good grades, in addition to not allowing you to save money by having to dedicate more amount to the payment of your CT for a longer time.
If you really want to take advantage of the minimum payment, follow these practical tips that will give you greater security and efficiency in handling the minimum payment:
- The amount to be paid: you must be clear about the percentage of the minimum payment of your credit card. In this way, you can more effectively manage all your debts at the end of the month.
- Pay more than the minimum monthly amount: in case you can’t settle your balance, you can pay a little more than the minimum. Remember that it is a monthly process, so every effort and everything you do will count, even small amounts add up more and more.
- Look for the best deals: you can compare prices and buy efficiently to make a profit. The idea is that you take advantage of the offers of the day, so that when using the credit card you do not become indebted.
- The great temptation: naturally, by owning a credit card, you will be under the temptation of wanting to continue spending, this will not help you at all in resolving your debts. The simple recommendation is encompassed in one word: Control yourself! Do not spend to spend, as you will accumulate new debts on previous debts or add new expenses to your already settled card.
- For emergencies only: try to use your credit cards only for specific cases, for emergencies or situations that really merit it.
Minimum payment to not generate interest
Another alternative for you to take advantage of the minimum payment is the resource of purchases without interest months, also known as MSI, in this case, the bank would assume your debt by paying directly to the trade.
The amount would be charged to your credit card and the minimum payment would be charged according to the months you have selected.
If you decide to take this payment plan, you could verify that the product lasts longer than it will take to liquidate it, in addition to that purchase made does not cover most of your credit.
In summary, we can say that we really know what you want, optimize your financial instruments, in this case your credit card, which also provides you with taking advantage of the minimum payment, raising your economic condition.
This is possible through factors such as savings, the solution to your credit problems and obtaining, for example, a greater cash flow to boost your business.
It is true that your first thought would be the bank, an excellent and solid alternative, but have you thought about Fintech companies? And better yet, are they able to settle your debt with the bank?
Currently, there is a wide variety of options, which are focused on debt coverage, but if you are looking for a solid and efficient recommendation, now you have a prestigious and high-reliability financial team, capable of absorbing your debts in the TC, it it’s about Western Credit
Western Credit can easily resolve the debt you have with the bank, as it has functional plans adapted to your financial statement. Western Credit was created to give you the maximum support in your purchases with credit card.