Some expensive purchases will be easier to manage with a credit card because it will let you make payments over time. Find out more.
With the Después credit card you can pay for your purchases over time and make use of over 6,000 ATMsRequest information
It is sometimes difficult to pay for everything in one go. However, it is not always necessary to take out a loan, as there are other ways to finance purchases: credit card.
Banks generally offer you two different types of bank cards: a credit card and a debit card. Transactions performed using a debit card are immediately charged to the card holder’s account. However, by using a credit card you can pay for all the purchases made over the course of one month during the following month or spread payments over several months and pay interest or a deferral fee.
Deferred payment by card
Credit card payments are made against the credit limit of the card. This means that purchases are not charged to the customer’s account immediately, but become payable the following month. By using a credit card, it is also possible to split payments for big ticket items into several installments and to use this deferral mechanism to manage your expenses more flexibly.
By using a card to defer payments you can manage your finances easily and without paperwork. When you purchase something over a certain amount (Euros 50), your card will indicate the expense in question and then, using either online banking or the bank application, you can simply decide to pay for it in one go or in different installments (which will involve paying fees or interest).
In this way, for example, you can finance the purchase of chance acquisitions, effect high payments or simply manage your current expenditure (these types of transactions are always against the card’s payment limit and entail the payment of fees and interest). It is also possible to take cash out on credit by withdrawing funds against the card’s credit limit at an ATM, which you will subsequently repay in installments.
Credit cards are also insured to protect you against unforeseen events. For example, in some cases your card can notify you about transactions in real time, offer you free insurance in the event you are held up at an ATM and protect you against potential fraudulent use of your card. New technologies also enable you to pay without swiping your card by using a “contactless” system and to access interesting programs that let you earn points on your expenditure. There are a whole range of advantages that justify using your card to make payments.
The Despúes card is BBVA’s credit card: pay for your purchases over time and make use of more than 6,000 ATMs: more information
Expenses, fees and the most common credit card conditions
Having said all that, perhaps the easiest way to illustrate the advantages of a credit card is to discuss a specific product in greater depth. In order to issue a credit card, a bank will usually demand that the card holder has a regular income and owns a bank account.
In BBVA’s particular case, customers who meet these two requirements can, for example, access a financing product such as the “BBVA Después Tarjeta ” [BBVA Later Card], which they can use to pay for goods in stores or withdraw cash from their credit account at ATMs worldwide. This specific card is highly flexible as regards repayments, as you can either defer payment for one month (in this instance, on day 5 of the month following the month in which the payment was made) or repay in easy installments. You also have the option to customize payments into the installments you choose (up to 36 monthly installments). There is even an option called “zero payment”, which allows you to defer payment into up to two monthly installments per year. One of the most notable costs of this specific product is, for example, an annual card ownership fee of €40. This annual fee can be waived if the cardholder meets the requirements of the “Adiós Comisiones” program [“Goodbye Fees” program]. For more information about this card, please go to BBVA’s website: BBVA.es.
If you have chosen to repay purchases in full using your card, any purchases you have made with it will be debited to your account on day five of the following month. If you choose to withdraw funds on credit from BBVA ATMs, the bank will charge the relevant fee and interest. If you choose to defer payments you will pay either a fixed amount, or a percentage of the amount spent, as well as the relevant deferment interest. In summary, as a BBVA customer you can benefit from both a credit card and flexibility as regards paying for purchases.