Credit card: a complete guide with everything you need to know

       

Credit card: a complete guide with everything you need to know

Credit card is one of the most used means of payment by Brazilians. In the first three months of 2022, the use of this method increased by more than 40% compared to 2021. However, it is also one of the main causes of debt.

That's because shopping without seeing the money leave the account is good. But, when the invoice arrives, it's to be scared. Understanding how the credit card works , the invoice installments and the limit helps you not fall into this trap.

Have you ever wondered how the credit card works!

A credit card is like that friend who lends you money when you forget your wallet at home. The amount does not leave your account at the same time and you only have to pay when the invoice arrives.

In other words, using a credit card is like taking out a loan from the bank. He pays the purchase for you, in cash or in installments, and then you settle the debt by paying the invoice. But like any loan, cards also have some specific rules.

Users have a limited amount to use. Therefore, many people end up having more than one card . And that can lead people to have big debts. No wonder, the credit card is one of the main causes of default .

After all, if you don't pay the bill, the interest starts rolling in and the amount grows quickly!

Inside the credit card

See each element that makes up the credit card:

name and logo: identifies the issuing bank;

owner's name: identifies who owns the card;

flag: the “brand of the card”, shows the issuing company;

chip: used to authorize purchases;

number: used to identify your card;

validity: time until the card expires and stops working;

security code: number used to authorize online purchases;

support contact: phone contacts to resolve situations with the card;

magnetic stripe: used to authorize purchases.

How does a credit card limit work?

The credit card limit is the amount available for purchases. As you use this value, it decreases. For example, if your card has a limit of R$1,000 and you make a purchase of R$200, you will have R$800 available.

How do I cancel a credit card purchase?

If you made a purchase but regretted it, you need to contact the card issuing institution.

The best way to do this is to seek telephone assistance or online chat. Then, explain the reason for the cancellation and wait for the chargeback.

The refund is made on the invoice, that is, when you go to pay, you will have a discount for the purchase. Cancellation can be requested in the following cases:Billing error in face-to-face purchases;

Cancellation of online or telephone purchases;

Incorrect billing for online purchases;

Different prices for the same product;

Product not delivered on time.

How to calculate the optimal limit?

According to specialists in Financial Education, the ideal credit card limit is a maximum of 30% of monthly income. If you need more limit, you should not exceed 50% of your income.

How to increase credit card limit?

The limit is different in each financial institution. However, in general, it is released according to the user's monthly income.

In the case of the PagBank credit card , it is possible to increase your limit by reserving part of your account balance or investing from R$300 in one of our CDBs .

How does credit card payment work? 

If you make an installment purchase, the full amount of the item is reserved at the limit. For example, if you split a purchase of R$500 in 5 installments of R$100, the limit will be reduced by R$500. Stays like this: Limit of BRL 1,000;

Purchase of R$500 in 5 installments of R$100;

New limit: R$1,000 – R$500 = R$500.

As the installments are paid, the amount will be released. In this case, R$100 for each invoice paid.

8 tips for using your credit card wisely

Your credit card can be a friend or a villain in your financial planning. To use this means of payment in a healthy way, check out these tips.

1. Keep an eye on invoice expiration

To avoid debt, the first step is to pay your card bill before it expires. The interest charged for late payment is very high, so pay on time to prevent the amount from increasing.

2. Write down and control expenses

It's very important to write down everything you bought on the card to have control over your expenses. If your bank has a mobile app, always keep an eye on the invoice and see the total amount owed . Small expenses can add up to a big bill. Pay attention to service subscriptions and those extra purchases.

3. Set a maximum amount for purchases

In order not to spend too much, it is important to put a limit on purchases. The tip here is to analyze how much you earn and set a maximum amount to consume per month. Then keep an eye on spending and write down expenses so you don't go over your goal. If your card has this option, you can adjust the limit available in the app!

4. Think before you pay in installments

Installments take the total amount of the purchase and dilute it over the months, so before paying in installments, do the math. See if you're going to pay interest and assess whether it's not better to squeeze a little in a month than pay the amount for a long time.

5. Don't accumulate multiple cards

In the past, credit cards were basically issued by banks, but today, even department stores can issue one. And, many people have been taking advantage of this facility and gather up to 4 different cards!

There's nothing wrong with that, however, more cards to pay means more challenges to manage finances and more bills to settle at the end of the month.

6. Don't lend your card

Do you lend the card to colleagues and relatives to make purchases in installments? Be careful with this practice. Lending the card means that you do not have full control over what is being purchased in your name, and this can be a trap.

Not to mention that, for all intents and purposes, that purchase is in your name. That is, the debt is yours!

7. Do not make withdrawals with your credit card

Withdrawals made with a credit card are included in the invoice. Be very careful not to exceed the limit or make too many withdrawals.

Don't forget that withdrawing on credit incurs fees, so if you really need to, try to do it only once and withdraw a larger amount so you don't have to pay the fee again.

8. Buy on secure sites

Unreliable sites manage to deceive the consumer and capture all card data. To escape this theft, be very aware of the sites you shop at.

An interesting idea to escape scams is to use the virtual card . It is like a digital copy of the card, however, that security code (called CVV) changes every 24 hours.

How to get a credit card?

To have a credit card, you must be over 18 years old. Also, remember that, as it is a form of loan, it is possible that the institution will deny the release of the card if it thinks you cannot pay.

The first tip is to try at the bank you already have an account with. Thus, the relationship can count positively towards release. Now, if your name is negative, try to settle the debts before. The Serasa Score may affect your order.

If you have more than one card option available, compare them. The PagBank credit card, for example, has no fees or annuity. In addition, it is important to know the interest charged in case of late payment of the invoice.

Get your questions answered about the PagBank Credit Card

The PagBank credit card has no annual or monthly fee. That's right! It's free! You can use it in Brazil or abroad and online shopping too. To better understand how the PagBank credit card works, we answer the main questions. Check out!

Do I need to have an account to use the card?

Yes. But rest assured that opening a PagBank account is something you can do sitting on your couch. Just download the super app , register, send the documents and that's it.

And the best thing is that the account is free, has no fees and yields more than a traditional savings account.

How do I order my card?

To have the PagBank Credit Card you can reserve an amount from your account balance or invest from R$300 in CDB applications . The amount you invest will be the same as the card limit. See how to do it by clicking here.

Do I have to send any documents to receive the card?

No. What you sent when you opened the PagBank account is enough.

What defines my limit?

The limit is determined by internal evaluation. Remembering that you can make an advance payment of the closed invoice or a single payment to release part of the used limit. Find out all about prepayment here .

It is also possible to define your limit by reserving an amount from your account balance or investing from R$300 in CDB applications.

When must the invoice or annuity be paid?

Annuity here at PagBank does not exist! We do not make this type of charge. You only pay the invoice on the due date you set.

Is it possible to activate Automatic Debit for my credit card statement?

Yes! Now at PagBank, you can schedule automatic debit to pay your credit card bill. Check out our content on the DA , clear your doubts, activate automatic debit and never delay your invoice payment!

What type of purchase is it advisable to pay with a card?

The PagBank Credit Card is the only one of our cards that allows purchases in installments. However, they must be done carefully so as not to compromise financial health.

If you want total control over expenses, without an invoice or payments after purchases, it is worth having a PagBank Prepaid Card . With it, you only spend or withdraw the value that is entered, that is, everything is well controlled.

Now, for everyday purchases, you have the PagBank Account Card . It uses the account balance for purchases and payments. And there is also the Free Debit Card , which is being released, little by little, for PagBank account users.

What are the fees charged for using the card?

None! We do not charge fees or annual fees for using your credit card.

Is it possible to cancel the card at any time?

Yes! Just go to the Cards tab of the super app, access the card and request cancellation. You will only be required to pay outstanding invoices prior to cancellation.

What about theft/loss? What to do?

If that happens, rest assured! Just access PagBank directly through the super app. See here how to cancel or block your PagBank Credit Card.

What is the advantage of an international card?

The international card allows purchases and even withdrawals abroad, so if you need to travel outside Brazil, the administration of purchases is simpler and more controlled.

In addition to the credit card, whoever has a PagBank account has a complete and free digital bank.

Do you want to better understand how each of our cards works and choose which one best fits your needs? Get to know the PagBank card options !

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