How to pay by credit card without getting into debt should be one of the most frequent questions asked by compulsive consumers. But not only from them. But also of all those who have ever applied for a credit card and have been tempted to become Di Caprio in the Wolf of Wallstreet.
Paying with a credit card is quite simple, the complex thing can be paying the bill of the month. Once we get our credit card, we will want to pay for some or all of the purchases we make. It all depends on your bank, but it works more or less like this. Usually they will send the card to your home or workplace. There you must sign and they will ask you for a photocopy of your identity card. Try to verify that it is the shipment that you previously agreed to avoid fraud.
Then you will have to activate your password through an ATM or your bank’s website. Activation usually takes 24 hours. If you do it before 14:00, it is activated the next business day. If you activate it after 14:00, it is enabled the next day, therefore, the day after tomorrow it would be active. Make all inquiries beforehand to your bank executive to avoid confusion. Payments of credit card debt are made on the established payment date, which may be at the end of the month, during the fortnight or other pre-established date.
Depends on the card. Today most cards include chip and Contactless system.
In case of having an old credit card, the payment is generally made by passing the plastic through the slot of the Redcompra machine. However, due to the large number of card cloning cases, the issuing companies had to update their systems creating new technologies.
The chip card has the advantage that it allows you to make payments through a chip embedded in the plastic, which was supposed to be much more difficult to clone. In this way, cloning was greatly reduced but somehow they also began to clone the chips. The problem was contact, that’s when the Contactless payment system appeared, which without having to touch the Redcompra machine.
If you are going to pay with your credit card, the procedure is quite simple. You must enter your four digit password and voila.
With your credit card you can pay 3 types of purchases: normal purchases, installment purchases, immediate charge purchases and purchases abroad. It is important that you know them in detail what each of them is about, so that you avoid getting into debt.
One way to pay your credit card is through “normal purchases”. These purchases are equivalent to buying in cash, that is, they do not include fees and, therefore, no interest. The only difference is that the payment is finally made on the due date of the statement, so you can have up to 45 days of financing without interest. In most cases they are affected by the credit tax.
Another way to pay your credit card is by activating an Automatic Card Payment, known as PAT.
One of the great advantages of credit cards is that they allow you to pay very expensive products or services in installments. But many times it is also the Achilles heel of inveterate consumers, since the real notion of the value of money through plastic is lost a bit. The idea is that you check well with your bank as these 3 modalities of installment purchases work, before going out to spend all your space:
Fixed installments: These are purchases to be paid between 3 and 48 installments with interest and without commission. They are affected by the credit tax.
Trade fees: purchases in known installments to be paid between 4 and 24 months with or without interest and without commission. They are affected by the credit tax.
3 installments cash price: purchases in 3 installments without interest or commission.
We did not know this and discovered it by researching for this article. Immediate charge purchases are those where the transaction generates interest from the date it is made, until payment.
Finally we find the purchases that you can pay with your card outside of Chile. Among these are purchases and advances made abroad for which the quota in dollars assigned to the card is used. If you do not pay your billing on the established date, the converted debt will be transferred to pesos and will occupy the quota in Chilean pesos.