How to pay the visa card minimum
10 August 2020 The card minimum is not always a fixed percentage. It usually consists of about 5% of the debt balance and the total of all non-financial expenses, which depend on the purchases made by the customer.
The entity will provide a credit amount for which it will be able to operate and will be related to the applicant’s income. Unlike the debit card, the funds to be used do not have to be previously deposited, but as they are used to withdraw cash or make payments, a debt will be automatically generated. Generally this debt must be paid monthly, for which the entity sends a summary with all the transactions made, the due date and the amount owed.
Minimum payment by mastercard credit card
A credit card is a means of payment that allows you to make purchases and pay for them later. It is “credit” because the amount of money you use when you make a purchase corresponds to a loan granted by the financial institution.
With this product, the entity authorizes you to use a certain amount of money to pay for goods and services, this amount is charged by the merchant and then your bank sends you a statement notifying you of the value of the product or service you purchased, the interest rate you will be charged and the respective associated fees.
How is the minimum credit card payment calculated?
The difficulties that people have to pay the total of their account statement, led them to pay the minimum payment of the card in order to keep it active, but many do not know that they are generating a debt that is very difficult to cancel.
So that everyone can understand what it is about, and the care we must take with this, we can define the minimum payment as the lowest amount required by the credit card to keep it in force and not fall into the Veraz.
In your monthly account summary that you receive with the detail of the consumptions to be paid, you will find both the total amount to settle the debts assumed, as well as the minimum card payment for the period that is being settled.
Therefore, you will continue with a debt that generated only that minimum card payment and, of course, its respective interests, and in addition, when you continue spending with it, you will also have to face those new consumptions.
In this case, you will be able to continue using the card, but the corresponding interest will be generated by the unpaid balance, which will be less than if you had only made the minimum card payment.
What happens if I don’t pay the minimum visa card amount?
If your debts are so high that you have no other option but to pay the minimum, we recommend that you refinance your debt and discuss your situation with your financial institution. If you decide to obtain a new loan to pay off that debt, it should allow you to pay in less time, and with monthly payments equal to or less than those you are currently making by paying only the minimum.
It will be more difficult to obtain new loans: if you wish to obtain another loan, it is very difficult to obtain it with this payment behavior of your current credit. If you ask for a loan, the financial institution will evaluate your payment capacity and it will be difficult to qualify as a candidate due to your history.
The minimum payment is a resource for emergency cases that allows you to keep your credit current. If you resort to this instrument it must be because you cannot pay the total balance, this should be the exception but not the rule. Take control of your debts and take care of your financial situation.
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