What is credit card maturity? How not to use this service?

Once you own one or several credit cards, almost everyone knows about “maturity” of the card. However, credit card maturity is also a double-edged sword for your wallet.

What is credit card maturity?

Learn about credit card maturity

Using a credit card to pay for goods and services is not only convenient but also comes with many benefits and incentives (for example, refunds on spending, incentives from affiliated brands…) so it is very popular. favored by many users.

However, if you do not know how to manage your money well, do not pay your debt on time or “suddenly” forget, you will truly experience the saying “every mistake must be paid in cash”.

According to general regulations of banks, if the payment deadline is even one day overdue, the cardholder will still be subject to late payment fees and interest rates (fees vary depending on the bank where you are located). open card).

If customers are often late, their credit score will be deducted and it will be difficult to access bank loans; At the same time, it will be more difficult to request an increase in limit and open more cards. This is when many users come to credit card expiration services.

Simply put, this is a service when the credit card debt is due and you cannot afford to pay, you can borrow money from an individual or an organization to pay the card debt.

At that time, these services will deposit money into your account to pay off the credit card balance, helping the card become “clean” with a “like new” limit. Next, when the bank re-issues the credit limit on the card, the company will swipe the card through the POS machine to get back the borrowed amount and maturity fee. After that, the new outstanding balance will be calculated on the next statement.

Be careful when credit card maturity

Normally, the credit card maturity process is quite simple.

First, you bring your personal documents (identity card, citizen identification card…) and credit card to the location where you want to use the maturity service. Here, the staff will check the bank statement to determine the amount you need to pay as well as discuss the fee… After determining the amount, the staff will deposit the exact amount. into your account to help you pay off your debt.

Next, you need to wait for the bank to confirm that the payment was successful. The company staff providing the maturity service will use the POS machine to swipe your card with the advance amount, ensuring that the transaction is carried out as requested. Finally, you pay the fee and complete the transaction maturity process.

Although there are immediate benefits, credit card maturity services also have many potential risks. Some risks that cardholders may encounter when using this service include: Disclosure of personal and card information; The risk of having your card blocked by the bank…

At the same time, the nature of credit card maturity is that it surpasses bank control, allowing the cardholder to extend the debt to the next period. If you abuse this service repeatedly and continuously, it can make the bank suspicious and temporarily lock the card to increase monitoring of the owner’s card account. Thus, both your confidence index and credit limit are brought to a not very good level.

Use credit cards wisely

Some experiences for using credit cards smartly

For all the reasons mentioned above, using credit cards intelligently and with a plan will help us avoid falling into unwanted situations.

Here are some experiences you can refer to:

First, you should research and choose the right card type. Before opening a credit card, you need to consider your financial capacity to determine the appropriate limit, interest rate and monthly payment ability.

Next, you should take advantage of credit card incentives. Normally, banks will cooperate with many partners to bring incentives to cardholders. Especially information about the interest-free period and refund amount for spending.

Furthermore, it is necessary to manage planned spending. Before receiving the card, make a specific, reasonable and effective spending plan to avoid prolonged debt. You need to prioritize paying necessary expenses first, then personal expenses.

Be careful when using credit cards

• To maintain credibility with banks, it is important that you pay your outstanding balance on time and avoid bad debt.
• To avoid losing overdue interest, regularly check statement messages from your bank and make sure you pay on time.
• Note that if you only pay part of the amount due, the remainder will continue to incur interest at the normal rate.
• Before completing the maturity transaction, check to see if the bank has cut your debt or not, because the debt cutoff time may vary depending on the bank.

Nowadays, using credit cards has become an indispensable part of daily life. In particular, credit card maturity is an option that can help solve temporary financial difficulties. However, this also requires responsibility and careful consideration. Managing deadlines and avoiding potential risks is something that cannot be ignored. Understanding the process and making smart choices will help you maintain personal finances safely and stably.