Top 8 things you do not know about your credit card

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In addition to knowing what is the interest rate charged, the credit quota and some advantages offered by banks to use the credit card, not necessarily you should know everything about your credit card, even if you take it with you for a few years, you might be surprised with a couple of things. The interest rates, the quota, and the terms are not all you need to know. Here is a list of the details that go unnoticed.

The interest rate is not always the same

If you are one of those who believes that the bank is charging you the same interest rate as when you started using your card, then you are wrong. Banks are free to change the interest rate according to market conditions. It is important to know that these new fees apply for new purchases made and the law requires entities to notify you in case of change of the same. Therefore, it is important that you do not ignore the communications that come from your bank, remember that not all are charging, there are many that come as protection for you, as a financial consumer.

Remember also that if you go over the payment deadline, the interest rate charged for the days of default is also different and often reaches the usury rate. In many countries, it is possible not to accept the new rate and reach an agreement with the bank to maintain it, in Colombia this privilege is not yet available.

Balance

Returns If someone makes a purchase online and never comes or appears on your statement a purchase you did not make, credit cards give consumers a protection where they must make the money back, after having made all the procedures for return with the seller and the respective investigation on the possible cloning or theft of your credit card.

Best card with the chip

There are many credit card terminals in the world that only accept chip cards and not magnetic strips. Then, it is better than before traveling makes sure that your card has this new technology so that you do not have a bad time without being able to use your money in another country.

Fixed rate and variable rate

The fact that your credit card has a fixed rate today does not mean that it will always do so. As issuers are free to change the interest rate, they can also change the calculation mode. However, according to the financial consumer protection law, the bank must notify you of the change before it becomes effective.

The balance of purchases and advances

Some cards have a limit for the purchase of products in retail stores and assign another for cash advances. Therefore, before making your transactions, make sure you have enough resources to avoid generating extra expenses.

A strategy to keep your credit quota under control is to review your statement carefully and use the electronic channels that the banks put at your disposal to be informed of your account statement.

For online payments

Making the payment of the fee of your credit card in the bank branch has an advantage, and that is that it guarantees that the payment will be credited the same day. Although it is not as convenient as electronic payments, if you are one of those who is expected to make the payment until the last day, then it is better than you do it. Otherwise, the payments in the ATM, by the Internet and by Mobile Banking, in addition to being more comfortable, are very efficient, as long as you follow all the recommendations of your entity to do them.

If the extract is late, you still have to pay

Not receiving your credit card statement does not exempt you from having to pay by the deadline. Therefore, it is very important that at the moment you receive one you make sure and ask what is the day of the cut and the payment deadline, to be pending and make the payment. Otherwise, you will have to accept the charge for days of default and even a negative report at the credit bureaus.

Report to the

Credit bureaus When you stop paying your credit card for 60 days, the bank must inform you that it will be reported to the credit bureaus, this in case it is an error you can go to your bank and avoid a report is made that is not correct.