Credit cards have become something that every adult must-have.
The card can be used if it is still active and transactions are carried out through tools such as those from the take card payments.
Payments for cards will be made the following month.
Generally, we will find if there are 3 types of credit card payments made by customers, such as full payment (according to the bill), minimum payment, and not paying at all or in arrears.
Full Payment Every Month
Of course, this type of credit card payment is a payment that is highly recommended so that you avoid debts that accumulate.
If you pay credit card bills regularly, of course, you have a greater chance to live without worry and fear.
In addition, if you pay the bill in full before the bill is printed, you get a chance to avoid interest.
One thing you need to consider if planning to make full payment is not to be late. This can result in the appearance of additional late fees that will be charged the following month.
This option is often done for those who feel they have not been able to pay off their credit card bills in full.
They pay a minimum payment to avoid delinquent status that influences the Historical IDI.
The minimum payment charged varies, but the average ranges from 10% of the total bill + the bill that has not been paid in the previous month (if any).
Even so, some banks have different systems in enforcing minimum payments.
There are types of banks that will temporarily block credit cards if customers continue to make payments with minimum payment.
The customer can reactivate the card provided they pay off the remaining outstanding payments.
Not Paying at All = Invalid
If the customer has arrived at this point, the card has been permanently blocked and he can no longer make transactions using the card.
Usually, at this stage, the customer is required to pay a late fine along with the debt that has accumulated for months along with the interest that continues to run.
During this period, customers usually get warnings from the bank and are haunted by debt collectors.