Everything you need to know about your revolving credit card
What is a revolving credit card and how does it work?
- A revolving credit card is a type of credit card that allows you to systematically defer the payment of all transactions made, or a credit card for which you have chosen deferred payment from the payment options available. Within the limits laid down in the contract, you can establish the value of the instalment or agree for the amount payable to be a percentage on the drawn balance. You must bear in mind that, with each instalment you pay, the available limit is extended for the same value as the amount repaid, in other words, the sum you pay off in each instalment will be available for you to use again.
What benefits does this type of card offer?
- The main benefit is the amount of flexibility offered by the card, as you can decide how much to pay each month, within the limits established in the contract, and amend this depending on your financial circumstances. It is a live form of credit that is updated every month and that you can adjust to your needs.
What is the maximum amount of credit I can use?
- The maximum amount of credit that you can use is the credit limit established in your contract.
What is credit drawn?
- Credit drawn is the amount that you have used in payment transactions that you have yet to repay.
What is the NIR?
- The NIR, or Nominal Interest Rate, is what you pay to the bank in exchange for the money it lends to you, or that the bank pays you for depositing your money. In terms of a revolving credit card, as a form of credit, it is the price you pay in exchange for the money loaned to you.
What is the difference between the NIR and APR?
- The difference between the NIR and APR is that the NIR is the price that the bank charges for lending or pays for you depositing money, whereas the APR includes the NIR, fees and charges associated with the products. The APR allows you to compare different loans and credits, regardless of their particular conditions.
What can I use the card for?
- The card can be used top make payments at physical and online outlets. You can also withdraw cash from ATMs and transfer amounts from your card to the associated account.
What payment methods are available for revolving credit cards?
- Depending on the product, cards offer the option of paying a fixed monthly amount, a percentage of the amount drawn, within the limits established in the contract. If your card offers other payment methods that do not involved deferred payment, such as "total payment" at the end of the month or "immediate payment" and you choose either of these options, the card will not operate in the form of revolving credit.
What happens if I choose too low a repayment?
- If you choose too low a repayment, your debt may remain outstanding longer than expected: your monthly instalment is mostly used to pay interest and fees and a very small amount to repay your principal. Consult our Credit card and revolving credit card simulator on our website to compare how the term and interest payable change with different instalments.
What is the predefined repayment method?
- The predefined payment method will depend on the type of card. Those offering the option of making "total payment" at the end of the month, this will be the predefined payment method. Read the pre-contractual information and contractual information about the product in question carefully, as it will indicate the predefined payment method for the card issued.
How can I change the payment method?
- You can choose the fixed instalment or percentage of the drawn balance option, whichever best suits your needs, using the app, online banking or at your branch; remember that you can use our Credit card and revolving credit card simulator on the website to help decide the right repayment for you. For cards offering the option of choosing "total payment" at the end of the month, you can select this option when it suits you.
What is the minimum repayment I can make on my revolving credit card?
- For credit cards that only accept deferred payment: The minimum monthly repayment will be €50 or 5% of the available balance, the interest accrued during the period, the fees, the balance drawn above the limit.
- For credit cards that also offer payment at the end of the month in addition to deferred payments: The minimum monthly repayment will be €25 or 3% of the available balance, the interest accrued during the period, the fees, the balance drawn above the limit and the corresponding "Spread payment" repayments.
What is the usual term for repaying credit?
- The term depends on the capital drawn and the monthly repayment selected. Consult our Credit card and revolving credit card simulator on our website for further information. Bear in mind that the lower your repayment amount, the longer it will take for you to repay the full amount.
What will the monthly repayment be if I repay my debt over one year?
- Consult our Credit card and revolving credit card simulator on our website to find out the repayment amount when choosing to repay your debt over a 12-month period.
Can I repay the amount drawn in advance?
- Yes, you can do so either using the app, the website or at our branches. Bear in mind that depending on the type of card, fees may be charged for repayments made in advance. These fees will be indicated both in the pre-contractual information (INE) and the contract, and we will inform you of this before proceeding with the repayment.
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