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Always settle your credit card

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Platinum Wealth

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Great article from Bruce Whitefield, I bet your banker did not explain it to you in such clear terms:
 

Banks love it when you don’t settle your credit card balance in full. If you owe your bank R10,000 and pay R9,999, then they are entitled – as per the small print – to charge you interest on the full R10,000 rather than the R1 that you failed to pay. It may seem iniquitous, but those are the rules.

 

They even have a special name for people who pay the minimum amount every month on their credit card statements. They are called “revolvers”, and they are charged significant amounts of interest for extending the agreed borrowing period. That is as opposed to “transactors”, who pay the full outstanding balance monthly, having taken advantage of the reward scheme and the interest-free period made available to them.

 

Banks are not great fans of transactors as they make lower fees and earn less interest from them. Still, the financial institution does make a percentage every time their customer uses the card, so don’t feel too bad for the bank.



Source: https://www.businessinsider.co.za/beware-these-fiendish-credit-card-tricks-2018-12

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