Credit cards

Credit cards are a form of financing.

In general, we can make payments with the credit card throughout the month, at the end of which the bank collects the total amount we have spent from our current account.

In the event that we do not make the payment at that time, we can agree with the bank to repay the amount drawn down over a longer period of time or in several installments. In either of these two cases we will have to pay interest.

Credit cards also allow us to withdraw money from ATMs, even if we do not have a balance in our current account, in which case we will have to return that amount plus the corresponding interest.

There are two reasons why interest must be paid when using a credit card:

• Interest on overdraft balances, which is applied when we exceed the credit limit.
• Interest on overdue balances, which is applied when the debt has not been paid.