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 with an indefinite duration, or a defined duration that is automatically extendable, where the credit used is not paid in full at the end of the agreed settlement period. In other words, you can use up to the credit limit and repay it in regular instalments with a nominal interest rate (NIR) instead of paying back the entire amount at the end of the month or within a specific period of time. After you pay each instalment, the available credit on your card is updated according to the amount of debt repaid. This means that the capital amount you have just repaid in the instalment is available to use once again..
What are the advantages of this type of card?
The main benefit is the payment flexibility that the card offers you because you decide how much you want to pay each month, provided the amount is within the minimum limits established in the contract to avoid an excessive duration of the debt. With Santander revolving credit cards, you can choose to pay your instalment as a fixed amount or as a percentage of the drawn balance. Plus, you can change it at any time during the validity of your card contract to suit your needs.
Are Santander credit cards revolving cards?
Santander credit cards are granted for an indefinite period, in "total monthly payment" or "end of month" payment mode. In other words, the repayment of the credit used occurs at the end of the settlement period; they do not have the revolving mode activated. As per the terms of your Santander credit card contract, you can change your payment method whenever you want and opt to pay the credit used through regular instalments with a nominal interest rate (NIR), with a minimum limit to avoid excessive duration of the debt.
What happens if the repayment amount I choose is too low?
If you choose a repayment amount that is too low, your debt may remain outstanding for a longer time because your monthly instalment is mostly used to pay interest and fees and a smaller amount goes toward repaying your principal. This is why Santander credit card contracts provide for a minimum payment, to avoid excessively prolonging the debt and the related costs. You can use the Bank of Spain card simulator to compare how the term and interest paid change with different instalments.
How can I change the payment method?
Through the app, Online Banking or your branch, you can choose deferred payment with a fixed instalment (revolving) or deferred payment of a percentage of the balance drawn (revolving) – whichever best suits your needs. Remember, you can use the Bank of Spain card simulator to help you decide what your ideal instalment is. You can return to the "Full monthly payment" option whenever you deem it appropriate.
What other ways of deferring the debt can I activate with my Santander credit card?
Whether you have the "full monthly payment" or "revolving" payment option, your card contract may contain other forms of deferral such as “Pay in 3” or “Split Purchases". In both of these options, you can arrange to split the payment of one or more purchases, including account transactions such as direct debits, up to a maximum number of instalments and at the price indicated in the card contract.
What is the maximum amount of credit I can use with my credit card?
The maximum amount of credit you can use with your credit card is the credit limit granted in your credit card contract.
What is credit drawn?
Credit drawn is the amount that you have used in payment transactions with your card that you have yet to repay.
What is the NIR on a credit card?
The NIR or Nominal Interest Rate on a credit card is the price you pay in exchange for accessing the credit amount on your card, which is stated in your credit contract.
What is the APR on a credit card?
The APR includes the NIR, plus the fees and costs associated with the card, as stated in the credit contract. The APR allows you to compare different offers of a product.
What can I use the credit card for?
You can use your card to make payments at physical and online stores. You can also withdraw cash from ATMs and transfer amounts from your card to the linked current account.
What is the minimum instalment I have to pay on my revolving credit card?
In the case of credit cards that allow the revolving deferred payment methods as well as the full monthly payment method, the minimum monthly instalment is €25 or 3% of the balance drawn, the interest accrued in that period, the fees and related costs, any balance drawn that exceeds the limit and any "Split Purchase" instalments.
What is the usual term for repaying credit?
The term depends on the amount of credit drawn and the monthly instalment selected. Remember, the lower your repayment amount, the longer it will take for you to repay the full amount. Go to the Bank of Spain's card simulator for more information.
Can I repay the amount drawn in advance?
Yes, you can do this through the app, the website or at a branch. Remember, depending on the type of card, there may be a fee for repayments made in advance. These fees will be stated in the pre-contractual information in the "European Standardised Information Sheet" (ESIS) and in the contract, and we will inform you of this before proceeding with the repayment.
Where can I check the fees usually applied to credit cards?
You can access information on fees and interest rates charged and offered in banking services (Appendix 1) on the website Notice Board.
Are there any fees for late payments?
Late payments will be subject to late payment interest and a fee of €49,00 for communication and debt collection management costs.
These costs are the expenses the Bank incurs in notifying and managing the collection, as well as any losses incurred by the Bank due to provision for the unpaid amount in its accounts. These costs will be accrued, calculated and paid once only for each past-due amount that is duly notified.
What are my obligations as a credit card holder?
Once you receive the card, which cannot be transferred to third parties, you must use due diligence in preserving and safeguarding the card and your the security credentials, and when using devices that allow you to use the card, including electronic devices such as mobile phones. In addition, you must use your card in accordance with the conditions set out in the pre-contractual information and contract, and you must take the measures within your reach to protect the security elements with which it is provided. Avoid writing down your PIN, password or any other security code in a way that can be understood or accessed by a third party, and do not write it down on your card or on any other document that you keep or carry with your card.
If you become aware of an incorrect or unauthorised payment made with your card, you must notify the ban without undue delay.
You must also notify the Bank without undue delay if you become aware of the loss, theft or misappropriation of the card, passwords or PIN, or if a third party gains knowledge of these, as well as any other irregularity that may occur.
Can I cancel the contract once it has been signed? What is the duration of the contract?
Yes. You have 14 calendar days from the date the card contract is signed to cancel the contract, without having to state any reasons and free of charge.
Since the credit contract is for an indefinite period, you can request the cancellation of the contract at any time. Once the withdrawal or cancellation of the contract has been requested, the Bank will comply with the order to terminate the contract within a maximum period of 24 hours.
Likewise, the Bank may modify or terminate the contract at any time by giving you at least 2 months' written notice. On termination of the contract, you will have to immediately reimburse the Bank for any balance payable and return the main card and, if applicable, any additional cards.