Having a credit card can have different benefits, including promotions in some branches, interest-free monthly payments, as well as rewards programs in cashback; However, not paying it on the date established by the bank, you can bring some problems a person personal finance.
What happens if I don’t pay my credit card?
In addition to having negative records within your credit history, not paying your cards on time can destabilize your personal finances, since the bank may charge you an extra amount due to the penalties for late payment, and even add more interest to your account.
How much does it cost not to pay my credit card on time?
According to the National Commission for the Protection and Defense of Users of Financial Services (Condusef), banks charge the following amounts as a penalty for not paying credit cards on time:
|Banco||Late payment||Non-payment||inappropriate clarifications|
Volaris INVEX 0
|$455.00||Does not apply||$200.00|
Scotia Travel Classic
|$418.00||Does not apply||$200.00|
|$418.00||Does not apply||Does not apply|
|$400.00||Does not apply||$200.00|
|$399.00||$399.00||Does not apply|
|$399.00||Does not apply||Does not apply|
|$320.00||Does not apply||$300.00|
|$300.00||Does not apply||$300.00|
|$300.00||Does not apply||$250.00|
|$100.00||Does not apply||$200.00|
Does canceling my TDC affect my credit history?
If a person who decides to cancel their plastic only have one cardthe Credit Information Societies (SIC) will only be able to take the records of the operations carried out with that same card and thereby determine if the user is credit worthy or not.
That is, this can mean a long term problembecause, when canceling the card, your track record is harmed because your financial behavior cannot be reflected.
However, if a person who has many credit cards decides to cancel one, it would be beneficialsince it could be interpreted as looking for fix your personal finances y it would not affect your credit ratingsince it would remain active before the SIC records.
In these cases it is recommended to keep the card with which you have been with the longestsince it will be a better credit reference.
Therefore, we recommend that before making the decision to cancel your plastic, analyze the pros and cons. In other words, if the reason for doing it is because the price of the annuity is high and you no longer want to pay it, the best thing to do would be to cancel it and change it for one that gives you more benefits.
The Laws of Transparency and Regulation of Financial Services and that of Credit Institutions, establish that all customers have the right to cancel their credit cards when they decide and this process should be the easiest way possible.
How to avoid paying more for your credit cards?
The journalist Alberto Tovar explains in his column The financial published on July 23 that in the first place, if purchases are made with credit cards “It is essential to settle the balance on the cut-off date so as not to generate interest. Regularly the same bank indicates it in the statement of account”.
The applications of the banks and an order in the management of the card according to the payments that must be made can be of great advantage, since the financing offered by the card can be increased and serve in case larger expenses are required to attend emergencies.