The main characteristic of credit cards, unlike debit cards, is that the bank allows you to pay with them and advance money. Nevertheless, As explained by the Organization of Consumers and Users (OCU), The card has a spending limit that the bank establishes based on income, expenses and debts.

And how it works? When making a purchase with this type of card, it is recorded in a credit account independent of the current one. In this way, each user has a credit limited to a specific amount, which they can spend. Likewise, adds the OCU, the client can choose between repaying the amounts paid at the same time and without interest at the end of the month, or in monthly installments with the corresponding interest.

How credit cards work

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Regarding the credit limit, it is not a standard figure, but is determined by the card issuer based on economic solvency. “Some cards are issued with very low limits, over 500 euros per monthwhich facilitates their contracting, by requiring less solvency requirements,” says the organization. On the other hand, other cards have a limit that can exceed 6,000 euros.

Each time the card is used, payments are added up to the established limit. From that moment on, no more purchases can be made. Thenwhen the payment date arrives and the credit used is returned, this amount can be used again.

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On the other hand, if you use the deferred payment method, when the payment date arrives, “they will charge your bank the monthly fee you have chosen”. But you must remember that a part of this fee will be used to repay the credit and another to pay interest. This limit can be modified, both to reduce it and to increase it. However, if you want to raise the limit, “the entity will study your request to decide whether or not to grant you the extension.”