7 keywords to understand your account statement

April 26, 2022
7 keywords to understand your account statement

First time with a card? Way to go! Here’s a short guide on the 7 keywords you will see each month in your account statement:

  1. Credit limit 🔒 – Maximum amount of credit you can use with your card.
  2. Balance – How much credit you’ve used for purchases or services, which will remain as a debt at the closing of each periodic statement
  3. Minimum 💲 payment – The lowest amount you must pay by the due date to keep the account’s status current. It’s not set in stone; you can pay more, or even the total amount.
  4. Payment due date 📅 – The last day you have to make the payment without any late fees. If you incur in a late payment, it will be added to the minimum payment and will have a negative effect since it will show in your credit report if unpaid within 30 days.
  5. Grace period – Time in which no interests will be charged for any purchase (or service), provided you pay the total amount of said transaction within those days. In general, grace periods last between 21 and 25 days, depending on the financial institution that issues your card.
  6. Annual percentage rate 🏦 – Better known as In Popular cards, represents the percentage of interest you pay for using your credit card. Our cards have a variable APR that could increase or decrease according to the U.S. Prime Rate.
  7. APR for cash advances % – Rate you will pay for withdrawing cash from your credit card, or what is called ‘cash advances’. There is no grace period applicable to cash advances because they are not considered purchases, but rather a short-term loan using your available credit.

Being in control of your finances is easy. The first step is to understand the rules that apply. Then, pay on time each month at least the minimum amount; verify your account statements; and don’t exceed your credit limit. That way, you will begin to create, maintain, and grow a good credit score.