Credit Card Billing, how to understand it?

Credit Card billing comes month by month, to indicate the movements made with it, and therefore, the amount you must pay for its use. However, there are times when some concepts related to billing your card are often confused. That is why, in this post we will review them, to clarify all your doubts.

Credit Card Billing: Knowing concepts

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The key to efficiently managing your Credit Card is knowing how to recognize the different charges , interests and dates that come on your monthly ballot. Each of the purchases or money orders you make with your card are registered and invoiced by the administrator or bank with which you are affiliated. In this way, the entity makes a monthly charge that you must pay on an agreed date. Understanding this information will help you avoid paying more and will allow you to use your card wisely. Let’s start!

Billing dates

It is a period that includes thirty days , in which all purchases you make and advances will be considered. To these collections the previous debt installments that you have with your card will be added.

  • For example:
    Let’s suppose that the billing date of your Credit Card goes from September 5 to October 4:
    On your invoice will come the charges for all the purchases you made between those dates , which you will have to pay at most on the payment date that appears on your ballot and which we will review below.

Payment date

It is the deadline to cancel the monthly payment . It is usually 15 days after the closing of the billing. It is important that you make the payment on time, since for each day you fall behind you will be charged extra interest.

  • For example:
    If the billing date closes on October 4, the payment deadline would be October 19. If you fall behind that date, even if it is a single day or you pay a part of the amount of that month, you will have interest that adds up for each day of delay.

Total amount to pay

It is the sum of money that you have to pay that month. Remember that if you pay a part, pay nothing or let yourself be seduced by the famous minimum payment, interest will be added to the total payment and the extra charges that we explain in this post: Credit card maintenance: Do you know their charges?

Upcoming maturities

These amounts are the fees that remain to be paid within the next four months. This information will facilitate your budget planning during the following months.

It is important that you always keep them in mind. If new purchases are made, a new debt will be added and the monthly amount to be paid will be higher.

Interest rate

It is an additional amount that you must pay to use your card and they are classified into three types:

  • Interest on installments: It is the one that is applied depending on the number of installments in which you will pay.
  • Rotating interest: It is applied every time you do not pay the total of your invoice and you do it, for example, with the suggested “Minimum payment”. It is higher than Interest on installments.
  • Interest for advance: It is charged every time you turn cash from an ATM with your Credit Card. Of the three types of interest, this is the one with the highest value.

To learn more about the different types of interests, we recommend the post: What are the interests of your Credit Card?

Maintenance charge

This is a charge made by the financial institution for the sole fact of offering you the product “Credit Card” and it is paid every time you make purchases with it. In addition, there is also a biannual charge to all people who only have a Credit Card, regardless of whether they used it or not.

Once you understand your bill and know the cartoons included in it, you are ready to quote your card. Enter Compare and learn about the Credit Cards that financial institutions have available to you. Use the search filters, according to the program you want (accumulate and redeem points, obtain discounts or travel) and find the perfect Credit Card for you. What are you waiting for?