Yes, purchases are made with your Credit Card but at a certain time of the month, it arrives. Yes, herself, the dreaded bill of your card! There is no escape! It’s time to pay. But how to understand the credit card bill right?
Understanding your credit card bill is key to controlling your spending.
With so much information presented in this document, it is sometimes confusing to understand everything that is related there.
And what should be avoided at this point is undoubtedly an error of interpretation.
Ever imagined paying the wrong amount? There are these and other possibilities that can compromise your monthly financial planning.
So let us now teach you how to understand the credit card bill, each field presented. The invoice can be accessed online or even in print – many customers still prefer to receive the document via the mail.
Credit Card Invoice
The Credit Card invoice is a document sent to the customer every month. It contains information on all credit purchases made during a certain period of the month. This period may vary according to the closing date of the invoice, information agreed between the customer and the bank at the beginning of the contract.
But the invoice carries many other important information besides the establishment where the purchase was made, the date, the number of parcels and the value of the good or the service purchased. And each of them must be known. That’s why it’s important to explain how to understand the credit card bill.
Even if the invoices have different presentations. After all, each bank has its own model.
Understand the credit card bill?
Let’s show below all the information on the invoice, so you’ll know how to understand the credit card bill without complications.
Due Date of Invoice
Here is the deadline for payment of the invoice. This is an important fact. If the invoice is not paid by that date, the issuing bank may charge interest and penalties on the amount due.
Expected date of invoice closing
When the customer consults the online invoice, they can check the date the invoice will be closed. This can be strategic information for purchasing scheduling.
For example, if the invoice closes on the 22nd, the customer already knows that purchases made from the 23rd day will not fall on this invoice, but in the future. This is very important when it comes to understanding how to understand the credit card bill
Total invoice amount
Each invoice displays this field with the total value of purchases made in that particular period of the card’s useful life in the month.
According to experts, this is the amount that must be paid so that the client is free of high interest (when he chooses to install).
Minimum payment (or payment for routing from)
Here is informed the minimum amount that should be paid if the client is unable to pay the total expenses incurred in that month.
It is worth saying that choosing this payment option means that, next month, that balance that has not been paid will be added interest.
The banks send a proposal every month for the client to pay the invoice in installments.
If the customer accepts this option, he will only pay the first installment on the invoice in question, with the remaining installments for the next invoices.
You know that, right? Interest will follow this option …
Plots to expire
In this field are related the installments that will be charged on the next invoice, indicating the amount that the customer still owes.
This is important information because it is possible to schedule for the next month, knowing that a certain amount is already committed for future payment.
Normally, expenses that are made between five and 10 days before the due date are for the next invoice.
Financial charges charged on invoice
This is information not to lose sight of when we talk about understanding the credit card bill. The interest rate, applied in the event of delay or even non-payment of the invoice, interest of the rotary, taxes (IOF) and all other tariffs.
Expense statement or Purchase postings
This is the part of the list of all purchases made – in Brazil or abroad – indicating the establishment, date, number of parcels and the value of the purchase.
This list also includes the sum of purchases. This information can be separated according to the place (country) in which the transaction was made (national or international launch) and the amount of payment already made (from the previous month).
Experts suggest that this statement be checked carefully as it may present incorrect information or undue charges.
Credit Limit or Card / Available Limit
The Credit or Card Limit refers to the maximum amount of the Credit Card. The Available Limit is the amount that can still be used for purchases and payments.
Yes, because if the customer has a Credit Limit of R $ 1000.00, but made a purchase of two installments of R $ 200.00, it means that the Available Limit is R $ 600.00.
Once the payments are made, the total amount of the Credit Limit will be refunded.
It is possible to make withdrawals with the Credit Card, but this amount purchased works as a loan and presents charges and fees over the amount that was withdrawn.
The invoice also displays information about Loyalty Programs. There, the total points accumulated, the points to expire next month and the dollar amount used in the applied conversion is displayed.
Learn to use the Credit Card
In general, these are the information that accompanies the receipt sent to customers, with all the information to make the payment.
But in addition to knowing how to understand the credit card bill, it is important to know how to use your card well. Whether to make a purchase in installments or not.
Before going through the machine, it is always vital to know if the Credit Limit is enough to make the purchase.
If the option is for the installment, evaluate if the value of the parcel fits in the pocket.
Never lend the Credit Card, this is a risk that will be assumed exclusively by the cardholder.
When you make a purchase on the internet, you should know the website you choose. Always opt for the reliable, because in online purchases it is necessary to provide, in addition to the card number, the security password.