Learn how to get the juice at the cut-off date of your card. In this article we explain how to use money from the bank for 50 days or more at 0% interest.
Do you want to get more out of your credit card?
What if instead of about 20 days after the cut you had 50 or more to pay your card? It would be a great advantage for your pocket, right?
Achieving this “magic” can be a piece of cake if you organize your consumption based on your cut-off date , the day until which financial institutions record payments, purchases, cash advances, among other transactions you make with your credit card. Or vice versa: if you choose the cutoff date based on your consumption pattern .
As you surely know, after this date, the banks give you a period of about 23 days – it depends on the entity, a little more or less – to pay the total amount consumed at zero cost; and if you do not pay the entire balance to the cut, you would automatically be paying an interest for financing of an expensive 60% per year.
Determining the optimal date for the cut of your credit card based on your consumption will allow you to have more time to make your payments . If necessary, you must ask the bank to change the cut-off date. This will help you avoid trouble making consumptions in a timely manner and reduce financing costs with your credit card, in case you have them.
80% of the largest banks allow you to change your cutoff date
For each type of payment processor (Visa, MasterCard, American Express, etc.), large financial entities have a catalog of dates from which customers can choose.
It is such a simple procedure that you can even request it by phone. In the bank that takes the longest time to confirm if the modification of the cutoff date is approved, the wait is seven working days. Usually, the change is made for the next court after the application is approved.
The requirement that most banks require is that the client has paid what he owes to the current court or that he at least makes the minimum payment. In entities that offer a deferred credit in combination with the credit card they could demand that the client also pay the debt owed for this product.
In addition, as stated above, it is necessary that the cut-off date desired by the client be within those that the bank has for the type of card that it has approved or activated.
As you can see, requesting the change is the simplest part. But before doing so, we suggest you determine what your most convenient date might be .
How to identify the cutoff date that suits me best?
The ideal cutoff date will depend on your consumption pattern with the credit card . It is appropriate that the day of the cut is before the dates on which you make the bulk of your consumption, so that you do not have to pay them in just 20 or 23 days, but after your product cuts again in the next month , which will allow you to have an additional 27 days.
Let’s express the idea with an example . If most of your consumption is concentrated at the end of each month, because you have to pay your bills, make the purchase of the house or fulfill other commitments, it is in your best interest to have your court before these days. Assuming that the date you honor these commitments is the 30th of each month, it is convenient that your card be cut before that day, the 28th could be.
In this way, what you consume after 29 will appear in the card status that will be generated the next time your card is cut. In addition to that it will have been almost 30 days, then you will have 20 or 23 days to pay, in total more or less 50, without paying a penny in interest on financing.
As we have seen, the optimal use of the cut-off date allows us to save time and, if anything, avoid any late fees or financing. We must be clear that this advantage is not to pay less , but to pay later or at the time of the month that suits us best.
Its use is optimal to the extent that we avoid financing costs, which are particularly high in these products. That is to say, we must bear in mind that even harmonizing the dynamic consumption-cut-off date, we must pay everything consumed to the cut on time, every month. That, avoiding financing, is the first rule number of the prudent and wise cardholder.