How to pay a Credit Card: Know the Important Dates and MORE

7 minutos de lectura

How to pay Credit Card, it is usually a recurring unknown in various users. For this reason, it is important to have knowledge about certain aspects regarding this particular type of card.

That is why, in this article we are dedicated to developing: how to pay a credit card, its payment options, what are the important dates, what happens if a credit card is not paid, and we end up with the benefits of paying a credit card.

Welcome! In the following article you will know How to pay a Credit Card.

How to pay Credit Card ?: Payment Methods

Credit cards are considered one of the best known and used financing methods for many years, due to the ease of credit that they offer to the population.

In addition, to this is added the issue of functionality, which is quite simple and allows purchases or payments of different services to be carried out immediately with the consequent sum of interest.

On the other hand, it is convenient for the client to bear in mind that, every time they use this type of card, the money used to pay does not leave their account, but is provided by the company that issued said card.

Because of this, it is essential that they are taken into consideration three important dates. And that in turn, the different forms of payment that a user has when the payment deadline arrives.

Dates
  • Start date.
  • Cutoff date.
  • Payment limit.

Titles below, you can get all the information related to these three dates. Emphasizing the importance of having knowledge about each one of them when choosing a credit card.

Difference between Credit Card and Debit Card

Debit
  • This type of card is linked to a customer’s savings or payroll account at a bank. Therefore, each time it is used, the money found on said card will be used to pay for consumption.
  • In short, this means that money is withdrawn from the customer’s account and goes to the store where the purchase is taking place.
  • Now, the card’s usage limit is set by the amount that the customer has in the account to which it is linked.
  • Likewise, the customer’s consumption will not generate a debt and, therefore, do not imply the assignment of interest.
  • Pay for consumption with money that is available in the account without using cash.
Credit card
  • Now, every time a customer uses this type of card, the money used to pay does not come from their own account, but from the company that issued the card.
  • The issuer of this card is the one that will cover the consumption, and later the client must pay it.
  • The amount that the customer has on his credit card is known as: credit limit.
  • This limit is reached through an agreement with the card issuer at the beginning of the contract.
  • Finally, it should be noted that the consumption made with this card can generate a debt, which implies an allocation of interest.

Payment options

Likewise, it is important to mention that this type of card provides a financing period, which will depend on the date on which the purchases are made. Because, if something is acquired after the cut-off date, there is a possibility of having up to 50 days of credit.

Now, when this period of time ends, every user will probably wonder which ones and how many options they have to pay for it. Well, this type of card offers various options for payment, but it will depend on certain aspects.

  • First of all, the client must keep in mind the cut-off date and the deadline for payment of his credit card.
  • Subsequently, you must choose which is the payment method with which you can perform the operation.
  • It is essential that the customer keep all proof of payment, regardless of the method used to pay.
  • It should be noted that one of the most used methods is to go in person to one of the branches and pay the card.
  • Another way to do it is by going to commercial establishments that have an agreement with the banks. Among the options are establishments such as:
  1. Oxxo.
  2. 7-Eleven.
  3. Walmart.
  4. Mexican commercial.
  5. Soriana.
  6. Some pharmacy chains.
Payment options
  • Pay only the minimum: Based on the total amount consumed during 30 days, the card issuer will calculate the minimum amount that the client must cover in order to be up-to-date with the payment.
  • Pay more than the minimum: Now, if the client covers an amount greater than the minimum payment, the amount on which interest will be generated will be less. In this way, you can cancel the debt in a short period of time.
  • Pay in full: If the client decides to pay the total amount of the consumptions during 30 days with the credit card, he does not have to pay interest for them. However, even if it does not pay interest, it must cover the commissions or fees established in the card contract.
The decisions made by each client in the handling of this type of card will be reflected in the Credit Report in the Credit Bureau. For this reason, it is convenient to make payments on time.

What are the important Dates?

Start date

Most of these types of cards keep a record of the total consumption made by a customer over 30 days (one month). Therefore, it is essential to remember this date, since it is from that date that the registration period begins.

Cutoff date

This is the date on which the issuing bank of the credit card determines to carry out the summary of total credit movements. That is, if the cut-off date of the Account Statement is the 14th of each month, then a calculation of the monthly operations will be executed from the 10th to the 14th.

Payday limit

This is the deadline that the client has to pay the minimum payment required in the statement of account, or to pay an amount greater than it. The payment deadline and cut-off date are the same every month, so the client must check their account statement.

What happens if a Credit Card is not paid?

Well, not making the payment on your credit card has certain consequences. They will be explained in the following text, however, we recommend that the cut-off date and the payment deadline be remembered every month in order to avoid this type of situation. Attentive!

  • Increase debt: If the client could not make even the minimum payment, it will begin to generate late fees and interest. Everything will depend on the calculation that is carried out in the banks.
  • However, this type of commission and interest tends to increase exaggeratedly if payment is not made on time.
  • Damage to the customer’s credit history: Every user who has this type of card will have a history in the Credit Bureau, so when the client does not pay on time, it will be reflected in his history and credit score.
  • The bank will communicate daily with the customer who has not yet made the payment.
  • In extreme cases, there may be a boat. Although, it is not something that happens in everyday life.

Benefits of paying a Credit Card

  • Good credit history. As we have mentioned in previous points, each client has a Credit Bureau which is in charge of registering their behavior with banking and other services.
  • So, if the client pays on time, they will see in this record that they have complied.
  • Avoid using and handling large amounts of cash.
  • Control of your expenses. Having a credit card will allow you to review your account statement and verify how much and what you have spent.
  • You can access banking through the Internet. Performing transactions by this means are safe, and they also save a great deal of time.
  • Generate rewards. We must mention that, there are certain credit cards that offer and generate rewards in based on the client’s lifestyle.
  • An example of these rewards with BBVA points. Which can be used in a large number of establishments found nationwide to acquire new products.
  • In addition, another benefit is that you do not have to pay interest.
  • The total annual cost decreases.
  • Likewise, the customer will have an available balance on the card to be able to make new purchases.
  • Lastly, you can have more access and better financial products.

To end our writing, we invite you to help us share the information.

See you soon!

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