You got the payroll credit card bill, but you don’t know what that bunch of numbers and information mean? Still in doubt about how much you need to pay in the month?
So take the time to understand your credit card bill and no longer worry about doing math.
The payroll-deductible credit card, although it has several advantages, works like a regular credit card. And that’s why your invoice should be read and checked with attention.
It is always important to check what is being charged. As much to avoid undue charges as to control their installments and to have an overview on the personal or family budget.
Want to understand what you are paying for? Want to know what is the discounted amount and the outstanding balance?
Do not worry. Find out now how payroll credit card billing works. But before that, take the time to answer all your questions about this type of credit card.
What is Payroll Credit Card?
Payroll-deductible credit cards operate the same way as conventional credit cards. The customer can make installment purchases and withdraw money at the ATMs.
The big difference with this card is the payment of expenses at the end of the month.
Part of the amount that is spent in the month is discounted from the salary or benefit of the holder . Thus, before you receive your monthly income, the customer already pays a portion of your invoice.
This is why the payroll card offers lower interest rates.
Despite the facilities of this card, unfortunately, not everyone has access to it, being exclusive to some groups, also called eligible categories.
These are the same groups that can also borrow payroll loans.
Once issued, the payroll-deductible credit card can be used for installment purchases, but this is a point that also has some differences. Know more.
How does installment payment work?
Installment purchases on a payroll credit card are exactly the same as any other installment purchase.
What deserves attention is who will be responsible for the interest rates charged for the installment payment.
Installment payment by establishment
When the establishment is responsible for the interest, the customer does not have to pay any extra expenses.
This happens when interest-free installment payments are offered, which is common for lower value purchases, usually. Thus it is the shopkeeper who bears the charges charged by the company that manages the card machine used.
Installment by the customer
Already when the installment is with interest, through the administrator, who bears the expenses is the customer, ie cardholder.
Before making a purchase it is interesting to inquire about the amount of interest charged as it can greatly change the amount of the initial debt. The total invoice debt is called Total Effective Cost or CET.
The average payroll-deductible credit card interest rate for INSS Beneficiaries is 3.5% per month and, on average, 5.00% for Public Servants.
If the interest rates are higher than those charged by the payroll card, the customer may consider making the purchase in cash. Just use the card draw function .
This can prevent high interest payments and increased invoice costs.
What is the monthly amount that needs to be paid?
The payroll credit card bill is similar to a regular credit card bill. A statement is issued monthly detailing all purchases and payments made.
Also cited are the dates and name of the establishment where the purchases were made for security reasons.
However, the field of the invoice that deserves the most attention is the minimum payroll forecast .
Since payroll-deductible credit card payment is deducted directly from salary or benefit, the amount informed must be compatible with the 5% of payable margin. This is the amount that will already be deducted from the holder’s income automatically.
The supplementary payment required is the excess amount of the payable margin. This value, if any, is the responsibility of the customer.
If this amount is not paid in the current month, the following month’s invoice is added, plus interest.
Purchases above 5% of payroll monthly income
Payable margin is the limit each customer has for payable credit spending. By law, it is stipulated that 35% of the user’s income may be for this purpose.
Of this limit, 30% is used for loans and 5% for credit cards.
Thus, for example, if the monthly net income is $ 3,500, the limit amount of the payable margin is up to $ 175.00.
When the customer spends beyond the amount stipulated by the payable margin, he is then responsible for paying the excess expenses.
Regardless of the total invoice amount, the same amount will always be automatically debited (consigned). It is up to the user to decide how the rest will be paid.
Purchases below 5% of payroll monthly income
If the client spends less or has less than 5% of monthly income, no further charges will be made. The entire invoice will already be settled automatically. That is, no payment slip for overpayments will be issued.
This way you don’t have to make any invoice payments as the monthly debit is settled.
Remaining value from previous month invoice
It is recommended that amounts exceeding the payable margin are always paid in the current month.
If this is not possible, the unpaid amount will be charged again on the next invoice. However, the remaining amounts are always plus interest.
This credit works like other cards revolving, however, offers lower rates. This can be up to three times less, saving money.
Financial institutions also charge for the use of revolving credit card. Therefore, even using a payroll card and paying lower interest rates, the customer cannot neglect their payments.
Invoice Payment Methods
Paying the payroll credit card bill is quite flexible. The client can choose the best way to pay off their debts according to their finances.
Remember that the cash payment of the remaining balance is always the most indicated.
In the card statement is already quoted the amount that is paid automatically. The excess amount is charged in the form of bank slip.
To avoid charging additional interest, the customer can pay the bill in one go until the due date.
Partial payment is the most practical way to pay off card debt. The customer can make one-off payments even if they cannot settle the entire balance at once.
The amounts paid are being written off from the total debt. The tip in this case is not to use the payroll credit card until you pay off the previous balance. Thus, the debt does not increase due to new purchases.
The payment in installments happens when the excess balance is not settled. That is, when what was spent beyond the 5% charged automatically, is not paid.
Thus, the unpaid amounts accumulate and can be repaid.
How to apply for Bank Card Invoice
The way you apply for your credit card bill varies from bank to bank, but today you have easy access.
Generally, the slip is delivered to the residence or address indicated. It is also possible to apply at bank branches, by phone, over the internet or through the applications.
The payroll credit card was created to be a fair credit alternative. No bureaucracy. However, even with all the advantages it offers, the customer cannot fail to include this invoice in the monthly planning.
It is interesting to check the invoice, check the charges and keep attention to installments. It is also important to spend less than you earn to secure an emergency reserve.
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