Including communication with the issuers ... and verification of fees and conditions
Guidelines for using credit cards under "Corona"
Financial institutions emphasized the importance of verifying card data and maintaining receipts. Archives
For many people, credit cards provide an important resource when "cash" is scarce. With the affected levels of regular income, cards may be an important lifeline in meeting basic needs, but at the same time, if the customer is not able to make his payments on time, the card debts may accumulate quickly, and lead to long-term financial challenges.
Institutions specializing in financial advisory, including Nerdwalt and The Balance, offered a set of guidelines and advice that help consumers use credit cards in the best way in light of the Corona crisis, indicating that banks and credit card-issuing companies, and in various markets She expressed her willingness to work with the dealers affected by the crisis.
Contingency plans
The institutions explained that for people who may not be able to make payments, they must inform the card issuer as soon as possible, as banks provide emergency plans, allowing them to skip or reduce payments for a limited period of time, bearing in mind that they will need to compensate them after the end Grace period, adding that the customer may not be required to compensate for the missed payments immediately, but he will need to resume paying the minimum monthly payments at least.
Benefit
The institutions mentioned that banks can also reduce the interest rate on the card, which is the price that the customer pays for being able to borrow money, but it should be remembered that the interest rate on the credit card will return to normal at the end of the period, noting that the importance of setting up a plan to pay off the outstanding balances.
She added that losing a payment on the credit card or paying it late, will lead to additional fees or interest, and this could have a negative impact on the credit score, and for this reason it is important to contact immediately and seek advice from the bank, in case the customer is sure of his inability to pay Receivables.
Questions
The institutions specialized in financial consulting have listed some questions that the customer should verify when communicating with the bank or the authority that issued the card, which are the existence of any financial assistance programs related to the epidemic, and the fees associated with the options available with the bank, and if the customer is able to postpone Or reduce his monthly payments, will interest continue to accrue during this exemption period, along with checking how long the exemption period lasts, add information that will be reported to credit reporting agencies.
She indicated that for those who choose to proceed with the option of financial exemption, it is important to understand the terms of the agreement before agreeing to anything, as once acceptance, one should make sure to obtain a copy of the agreement in writing, and review the account statement every month for any errors and object to them.
Use wisely
The institutions stated that in addition to the procedures for the banks, it is the responsibility of the customer to use the card wisely, by verifying the due date of the payment, in addition to keeping the spending within the limits of control so as not to accumulate debts, noting the importance of tracking spending, regularly checking credit card data, and maintaining On all card receipts, along with the credit limit that the bank will allow for the card account, and which must not be exceeded.
Pay on time
Institutions specialized in financial consulting confirmed that paying credit card dues on time helps to avoid additional interest charges and late payment, pointing out that being satisfied with paying the minimum on the card every month will increase the amount of interest, and it may take years to pay off the outstanding debts.
And she stressed the need to avoid using the card to buy luxury and unnecessary products, especially if the customer is not sure of his ability to pay at the end of the month. And advised to make sure that the credit limit is not exceeded at all times and to know the fines that the customer will pay in the event of any violation of the card’s terms.
The customer must verify the due date for the payment, and keep the spending under control.
Losing a payment on the card or paying it late, will result in fees or interest being charged
Additional.