How credit cards work

We help you understand how credit cards work

Few things are more useful in our day-to-day lives than credit cards. As a payment method, this 'plastic' is private and non-transferable, so only the card holder can use it.

Besides, credit cards give us access to credit lines that can help make life much easier. Let's see how.

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You'll be able to pay for your purchases over time and use it at over 6,000 ATMs.

A loan when you need it

A credit card's main feature is that it enables the cardholder to access a sum of money, even if the money is not currently in the account associated with the card. This is possible thanks to the fact that banks provide loans in connection with the cards. These are credit lines which we can easily access anytime we pay with the card.

As for a card's credit limit, there are differences between the various types of credit cards on the market. Whether or not a card is granted to a particular customer is tied to the cardholder's ability to pay.

How the money is repaid

The purchases made with the credit card build up on the card, and then they are charged to the account associated with the cardholder in one of two ways:

  • At the beginning of the following month: In general, the charges assessed to the card during the prior month are charged on the fifth day. With this type, there is no interest.
  • Deferred payment: Credit cards also allow customers to defer payments and split them into comfortable installments. This payment method involves interest which varies based on the banking institution.
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Pay for your purchases over time with the Después Card and use it at over 6,000 ATMs.

Services and benefits associated with credit cards

Many credit cards currently offered by banks come with a series of benefits. For example, there are cards that offer discounts for refueling at different gas stations, while others return a percentage of the amount spent on purchases with the card. On the other hand, some of these cards have programs in which users can exchange points for discounts or products of interest.

Similarly, some credit cards are linked to some type of insurance. These are the most common ones:

  • Travel insurance: normally these cover limited expenses as a result of theft, accident, or any other contingency which might take place during a trip, including delays or cancellations for flights or train rides.
  • Theft or fraudulent use insurance: this covers the use of money which was stolen or the result of card duplication.
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