Credit cards give us a series of advantages and functions such as the fractional payment of our purchases made with these cards. It is an increasingly common function in banks, whose use has been enhanced during sales or Christmas purchases. That is why many families resort to this condition of their credit cards on these dates as a result of Christmas shopping, the arrival of Santa Claus or the long-awaited Black Friday.
The deferral of charges through credit cards do not usually exceed 6 months nor do they admit very high financing.
On the other hand, there is the option to pay our expenses in full with our card, an action that does not imply any type of cost or commission. That is the safest way of payment and in this way you avoid possible commissions or interests on the part of the banking entities.
Advantages and disadvantages of fractional payment
The most common with this type of transaction are financing ranging between 600 and 1,200 dollars in a period of three to six months . This function of our credit cards does not usually allow us to spend more than $ 3,000, for example in the case of requesting a travel card.
Commonly, one of the great advantages is to be able to defer our payments by allowing us greater economic peace of mind to meet our future expenses; Always at a low interest. It also allows us to face other expenses at that time, postponing our purchases for a future short-term payment.
On the other hand, one of the biggest risks of this type of financing tools is to fall into the routine of getting used to borrowing with deferred payments. These are expenses that we will always have to face, always being in continuous debt. And even more on dates like these where expenses soar and it is easy to fall into the habit and a negative loop of purchases and expenses.
Examples of installment payments
Good Finance offers a number of advantages with its smart cards as a series of different forms of payment. You can either pay on the day, at the end of the month, make a payment in installments, pay at the moment or finance your purchase up to 18 months without commissions.
On the other hand, another example is the well-known Bankintercard with which you can postpone your purchases and be able to manage your economy in a quieter way.