Shopping, shopping, shopping! Payday coming up and you’re already thinking about the month’s fixed spending, right? If you haven’t read our post on financial planning yet, it’s good to start here . Payday or not, sometimes we have variable expenses in the month, such as medicine, personal contingencies and the like.
Since these expenses are variable, you might consider paying them with your credit card, right? Behold the doubt arises: in sight or in installments? Fundico knows this question and has selected some tips to help you decide:
Cash payment by credit card
- Cheaper : after all, when we pay cash, we can always bargain that discount at the end of the purchase. Also, when you choose this mode, you usually have the entire amount saved;
- Security : Both cash and installment credit cards are safer than cash, especially when the purchase you want to make is of a high value;
- Free limit for next month : In addition to the advantages we quote, when you pay in cash, it ensures that next month your limit will be 100% free, which would not be allowed if you had paid in installments. But remember that if you can’t pay the full invoice, it will go into revolving credit and it has the highest interest rate in Brazil, rising from 440% per year!
Credit card installment payment
- Security : As we said, both cash and cash, the credit card is safer than cash, especially when the purchase you want to make is of a high value;
- Lighter Budget : If you choose to purchase in installments, your monthly budget will be lighter because you will pay for the purchase according to the number of installments, which correspond to the months. So if you split in three times, for example, you will finish paying in three months;
- It can be more expensive : the cheap can be expensive too. In some establishments, installment payments may come without interest, but will not always be the rule. That is, some purchases you make in installments may incur interest on the purchase price, which adds to the interest on revolving credit, if you do not pay the invoice to maturity. So be very careful when making any installments with interest and always ask the Total Effective Cost (CET) of the purchase;
- Lower limit next month : By splitting the purchase, your budget gets lighter, but you get the limit like a cash purchase. The difference is that in this mode the limit will return to normal when you pay off the debt. For example, you made a purchase of $ 150 and split it three times, that is, for three months you will pay $ 50 and at the end of that period you will have your limit back.
Ended up with revolving credit and your debt increased?
Look for a debt transfer and switch to a lower interest debt! Have you thought about personal credit? Fundico can be the solution! The granting of credit by the company follows the line of non-payroll-deductible loans to individuals. Total Effective Cost (CET) may range from 2.79% to 5.26% per month, depending on customer credit analysis and installment option.