Knowledge of credit card debt balance payments to avoid losing money

Cardholders often care about the benefits of credit cards but forget about interest rates and late payment fees. This has caused the credit card balance to increase, many customers have lost some "injustice" when paying credit card debt to the bank.

What is a credit card balance?

Credit card outstanding balance is the amount of money that credit cardholders owe to the bank when using the card to pay or cash.

The essence of credit cards is prepayment, the bank will issue a set amount of credit to customers who use it first and must return it on the due date of each month. Therefore, it can be understood that the amount spent by card, interest rate and fee (if any) is the credit card debt balance that the cardholder must pay to the bank.

How to make payment for VIB Mastercard credit card debt

There are three ways to pay credit card balances currently applied: cash deposit, automatic debit and payment from VIB account via VIB credit card by Internet Banking / MyVIB.

Pay in cash

This is the simplest and most common way that many customers choose. In this way, cardholders only need to come to the branch of the branch to open the card, present documents and request payment of the outstanding balance on the credit card. After the teller checks the information and announces the amount, the cardholder completes payment, completing the payment process of the outstanding balance.

Automatic debit

A solution to save time and increase convenience for customers. Every month, the bank will automatically deduct an amount in the account (this amount is specified by the cardholder) to pay the credit card balance to the cardholder. However, to use this form of payment, cardholders need to open a card branch to register the service.

Payment for transfer from VIB payment account via VIB Internet Banking or MyVIB

This is a very quick and convenient form of payment, you only need to log in to electronic banking (VIB Internet Banking or MyVIB). On the Payment menu, click and select credit card payment. Here you only need to enter the credit card number, the amount to be paid and some OTP verification steps that you have successfully paid off your credit balance.
Note, with VIB Internet Banking you can pay any balance of VIB Mastercard credit card of anyone.

Note to avoid losing money when paying outstanding credit card debt

To avoid unnecessary "unjust money", customers should pay attention to the following points:
Select the appropriate interest rate for overdue preferential cards
Each bank has a separate regulation on credit card interest rates. Therefore, when deciding to register for a card, you should choose the bank or the card line with the lowest interest rate for overdue preferential cards.

Pay off outstanding credit on time

The due date is the latest day that customers should pay the credit balance to the bank to enjoy preferential interest free and do not need to bear the late payment fee. The time when the bank confirms that the cardholder has paid is the time the bank receives the money, which leads to confusion leading to late payment and incur a fee.
To avoid this situation, customers should pay the credit card balance a few business days before the due date. Just pay the credit card balance in full and on time, customers can enjoy the points for spending and enjoy the discount promotion without having to pay interest when using bank money to spend first and pay later .

Limit cash withdrawals from credit cards

Cash withdrawals from credit cards are not recommended by the bank. Because when withdrawing cash, customers will incur additional withdrawal fees and withdrawal interest rates set by the card issuing bank.

Spend reasonably well within the affordable amount

Before buying an item, consider whether or not you can afford it in the future. In addition, if you have not paid your credit card debt in the previous period, you should limit shopping and spending by credit card in the period, otherwise your debt will increase.
Besides, you can take advantage of 0% interest installment plans to extend the repayment period for big spending to reduce credit card debt. Usually the installment program has a time limit, and partners, products and services. With VIB, 0% installment plan is applied to partner's products with fixed installments of 3, 6, 9 and 12 months. In addition, the 1% interest installment plan is applicable at any location with installments of 3, 6, 9, 12 months when the cardholder makes any spending from 6 million VND.

Use credit cards with long interest free periods

To optimize the period of using interest-free bank capital, customers can choose credit card lines with long interest-free period. Currently on the market, all cards have a interest free period of 45-60 days, with VIB Zero Interest Rate being exempted throughout the term of the card.
With VIB Zero Interest Rate, when the cardholder has a monthly spending demand of VND 15 million via the card, the cardholder must pay a transaction fee of only 0.99% (148,500 VND). The fee is charged only once during the transaction and is free for the first 3 months after opening the card. In subsequent periods, cardholders who only need to pay 20% of the total loan balance will be completely interest free.
Credit card is a cashless payment method with many practical benefits for users. However, it can make you "a debtor" if you do not know the reasonable spending plan and pay on time. Therefore, cardholders need to be aware of the rules, usage, fee schedule as well as the credit card's promotion programs to avoid unexpected charges.