Did you know that it is now possible to make credit card credit? It serves as an alternative to the installment purchase.
At the time of checkout, you choose the option, but interest rates vary and the payment period, depending on the bank, may be up to 36 months.
This modality brings much more advantages to the merchant because it receives the value within five days, even if the purchase is split.
But is it for the advantageous consumer? Here you will know how it works and if it will be worth choosing this type of credit.
How is the new credit card credit
First of all, be aware that the new credit card is still being implemented and its differential is that the installment deadlines are longer and accepted in practically all merchants. In fact, this is another feature of the credit card. But it is important to note what interest will be charged and each card company that will define which rate will apply.
Just to understand the difference: today, when you install a purchase, the number of installments is the storeowner, and may or may not charge interest. For retailers, this new credit is beneficial as they will receive the value within five days. And currently they took up to 28 days to receive.
In short, who makes this installation is not the shopkeeper, but the card administrator.
Can I choose how I want to pay?
Yes. At the time of purchase, the card issuer must present to the customer up to three installation options, as well as all costs involved in the transaction. So just choose the option that fits your budget, enter the password and complete the transaction. Remembering that you can do the simulation on the little machine of the card. Installments are posted to the next invoice, but you can only install them if you have a credit limit on your card. And as the installments are paid, the limit is restored.
Just remember: you still have the option to pay cash on debit, credit card or installment credit card.
The explanation given by banks that this new modality is to reduce the use of interest-free install card and consequently reduce the high rates of revolving.
Is it more beneficial for the shopkeeper or the consumer?
To tell the truth, it is much more advantageous for the shopkeeper because it will receive the value within five days, ie receive the value of the sale in advance. It is also worthwhile for small retailers, as they do not have enough working capital for finance purchases. Or when they offer the option of installment, they are in much shorter terms. The benefit for consumers is that they may have more discounts on term purchases because the market is more competitive. Moreover, it is a way to get away from the high interest rates charged by credit cards.
It is now up to each financial institution to define what the interest rate will be, depending on the profile of each client. For example, Santander will charge you interest rates starting at 1.99% per month, where installment payments can be made within 36 months.
What you need to be careful
Although it is another option for you to make your purchases, you need to be very careful about the new credit card credit. Why? So you don’t get excited, especially because of the longer deadlines. You end up buying what you don’t need and you risk going into debt.
Pay close attention not to become a trap and lead you to financial uncontrollability. You should know that the longer the term, the higher the interest. Another point you need to know is that the credit card limit is decoupled from the credit card limit. This way you can make more purchases and make more installments.
Is it worth doing?
Everything will depend on your budget, but like every purchase, the ideal is that you always seek to pay cash, that is, only buy if you have money. One of the major causes of Brazilians debt is precisely the credit card, even the ease. The problem is when the invoice arrives and you have no way to pay it in full.
Then enter the revolving card or accept a proposal for installation by the bank. But if you can’t afford it, your debts can only go so far as to become unpayable.