Not so long ago, and not so long ago, it was common for you to buy a home appliance, or higher-cost consumer electronics store, to issue your own bill and you pay monthly often directly at the issuing store itself.
Payment by credit has been part of our lives for a long time, and still does, but to a lesser extent. Being responsible for purchasing higher value products through the installment that best fits in our pocket.
Today payment through the credit has not disappeared, some retailers mainly from large networks still use this means of payment. However, it is noticeable that the use progressively decreased, leaving the credit in the background, being replaced by credit card, currently the preferred form of purchase by Brazilians.
The credit card currently has practically the same functions as the credit card used to be. Purchase facilitated by the payment in installments, thus allowing you to buy services and products that have no outstanding balance to do so.
An advantage of the credit, over the credit card, is the number of installments. With the credit you can install in 10, 12, 24 times. In the card, the installment is usually smaller and depends largely on the purchase price.
Higher purchase values may include longer installments, with more time to pay over lower value purchases.
A clear difference between both forms of payment is the interest rate present in each of them. Although the credit is divided into more than the card, its interest rate is lower (some even sell the idea of zero interest for a number of installments, but we know that there is a charge through interest).
Is there zero interest on the credit?
There is no zero interest in any installment, this is a fact. The famous “no interest” or “zero interest” advertisement is just a mathematical way to deceive the consumer. Well, we will explain how this works, and goes for any purchase you made in installments.
A particular product costs around $ 600 with 10% discount on payment by bank slip in case of purchases over the internet or in cash directly with the merchant.
For the installment payment in 6x the amount is $ 100 per installment. You will obviously agree that there is no interest here, right?
But there is the not so famous “embedded interest”. The actual value of the product is not $ 600, but the amount paid on the cash payment ($ 540 with 10% discount). That is, you will be paying somewhere around 2% monthly interest, which can be considered high.
As a way to compete with the store’s credit, the credit card was launched, seeking to become unanimous in the form of payment.
How does credit card work on the card?
The credit card on your card works basically like the credit card by the book, but without the book. It is possible by triggering it to make your purchases in the credit card without complication, as long as it is enabled on your card.
BankBrxl with creditcard was one of the pioneers to offer this service. To find out and authorize credit card payment on your card, contact your bank.
In the case of creditcard, the limit value offered is R $ 10,000, but the release of the value for each client varies greatly and according to analyzes made by the financial institution itself.
Before you make the purchase through your credit card, take some precautions.
There is no zero interest
The credit card on the card, in addition to presenting a possibility of larger installments and the proposal of a lower interest rate than the card itself, the interest of this type of payment reach 230%, 70% less than the average charged by the credit card. Don’t fall for this low interest rate.
Danger of indebtedness
Credit is offered by some banks to their customers as an amount apart from the credit limit available for purchases, which can boost debt, allowing you to make purchases by committing more than 30% of your salary, which is indicated, since it’s like you have two cards as extra limits. Financial education in this case is critical.