Credit Limit & Installments
- Thread starter daftone
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credit limit is always at $200
spend $120 on installment
left with $80 'balance'
if u pay back the first installment
repay $10 to CC company
left with $90 'balance' >> goes back to $200 once u clear your installments
spend $120 on installment
left with $80 'balance'
if u pay back the first installment
repay $10 to CC company
left with $90 'balance' >> goes back to $200 once u clear your installments
From your example, these are the figures:
Credit limit: $200
New purchase: $120
Mthly installments: $10 ($120/12)
Balance credit limit: $80
This means that, using the same credit card, you can only sign for another purchase of up to $80.
Credit limit: $200
New purchase: $120
Mthly installments: $10 ($120/12)
Balance credit limit: $80
This means that, using the same credit card, you can only sign for another purchase of up to $80.
if u are new to credit cards. Only one advice. Never use it unless u can pay the full bill end of month. End of day don't fall for those o interest and etc.... considering we are going into recession u better think about what will happen if u cannot even pay one month's installment. The interest at the end of the pile up after one year will kill you.
Seriously alot of things that offer zero interest. Do you really need it ? or u want it.
Seriously alot of things that offer zero interest. Do you really need it ? or u want it.
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AFAIK, the installment plan is to lock you in. You may clear your plan earlier but you may incur additional charges for that.
:Later,
agree with pinoy
if ur gg to buy camera equipments with installments,
better don do it .. don be a slave to your equipment
if ur gg to buy camera equipments with installments,
better don do it .. don be a slave to your equipment
Correct me if I am wrong,
According to my understanding,if the installment is $120, ur balance credit limit would be $80 until you cleared the installment?
No, you credit limit will 'recover' every month after each payment of the installment. (in this example, the credit limit will be restored by $10 each month, as the installment is 12 months)
wrong, your credit limit will increase according the amount u pay monthly.
Meaning, if you pay $10 this month, your credit limit become $90, etc...
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