If you’re paying your total amount due in full every month, then you have no problem with finance charges. Your finance charge will be ZERO.
But if you’re paying only the Minimum Amount Due, or a litle over it, then the one thing that you can do to reduce your Finance Charges is to pay early. May pera ka na rin lang, ibayad mo na. Huwag nang antayin pa na lumapit yong due date.
Why pay early when there’s a Payment Due Date?
Because the earlier you pay, the earlier you reduce your Daily Balance, the lesser the number of days your Balance is High, and the lesser your finance charge.
How is that?
Because the interest rate is applied to the average daily balance. If the balance is lower, then the finance charge is lower.
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Example: These are your daily balances:
Day 1 = 10,000 pesos
Day 2 = 10,000 pesos
Day 3 = 10,000 pesos
Day 4 = 10,000 pesos
You paid 300 pesos on Day 5
Day 5 = 9,700 pesos
Day 6 = 9,700 pesos
Day 7 = 9,700 pesos
Day 8 = 9,700 pesos
You paid 500 pesos on Day 9
Day 09 = 9,200 pesos
Day 10 = 9,200 pesos
Day 11 = 9,200 pesos
Day 12 = 9,200 pesos
Day 13 = 9,200 pesos
Day 14 = 9,200 pesos
Day 15 = 9,200 pesos
Day 16 = 9,200 pesos
and so on…. until Day 30 or 31
If you calculate Average Daily Balance, pag nagbayad ka ng 300 or 500, your average daily balance would be 9,367.74.
Pag wala kang ibinayad, ang average daily balance mo ay 10,000 pesos, at siempre, mas mataas ang interest mo.
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Hello po. Goodmorning. Im quite confused po kasi I need help. Huhuhuhu. Kasi parang ang laki ng finance charge ko. Almost 708 po sya. So bali po kasi ung previous balance ko is 11795 and due sya july 16. So nagbayad kami ng 8795 july 12. Nalate lang po ung 3300 na binayad namin nabayad namin ng july 18. Tas ganun na kalaki ung charge? Help naman po to compute. Ung interest po per month bdo credit card ko is 3.50%. Gulong gulo na po kasi ako ang laki msyado.
Hi Ms Nora, pwede ko po ba iconfirm yung computation ng MCC finance charge ko? bali (3.54%*average monthly balance) + Finance Charge.? yan po ba yung total amount ng machacharge sakin? Thanks in advance
Hi Sar, grabeng baba naman ang minimum due — 0.84%! Usually 5% sa other cards. Talagang gusto nila unti-unting bayaran para mas kumita sila nang matagal, kasi yong minimum due nila ay hindi pa kasya para mabayaran yong finance charge.
Yong outstanding balance ba na 37,700 ay kasama na yong current finance charge mo? Kung hindi pa, i-add mo yong 37,700 plus finance charge, then deduct 27k. Yong result, you multiply it by your credit card’s interest rate– yan ang estimated finance charge mo sa next SOA. Estimate lang ang result niyan, kasi ang bank, ico-consider yong average daily balance (exact number of days), tayo diretso na na one-month period. Obviously, meron ding dagdag ang interest if you use your card.
Hi good day.. ask lang po…
If i have this kind of case
Outstanding bal:37,700
Minimum due: 316.72
Due date: may 3
If ill be paying 27k for the due amount..
How much will be charged on my cc for the remaining balance until next SOA ?
Thanks
Hi miss Nora, I am a new credit card owner here, I would like to ask po if I’ll use my credit card(Metrobank with 3.54% interest) on retail purchase like worth 5k po, magkano po expected amount na makikita ko sa SOA po? If I’ll pay half lang po sa principal before due date. Magkano rin po babayaran ko the next month sabihin natin hindi ako gumamit ng CC for further purchases. Tnx sa reply po. Sorry if parang bobo ang question ko. 🙂
May 07, 2017 billing date
May 29, 2017 due date poh
Thank u
Hi ms.nora ask ko lang poh tama poh b ung ncharge n interest ng metrobank s bill q?
Previous balance-46,867.76
Plus
421.81 credit protect
2,572.72 interest charge (nalalakihan poh kasi aq)
500 over credit limit (ito cguroh dhl 38k lng limit q)
997.70 installment CA
561.21 installment CA
Less
3000 payment (kasi min.due yan muna bnyaran q)
Total bill 48,921.20
Ask q ndn poh qng mgkanu ung mggng estimated interest q nxt mnth pg dq pdn nsettle poh
Thank u so much poh
Hi Jen, dapat bayaran mo ang minimum due sa due date or before due date, kasi kahit isang araw lang ang delay mo, macha-charge yong buong penalty na 750 pesos, or 7.5% of the minimum amount due (macha-charge ang result nito if this is higher than 750). Mapo-post sa statement mo as late payment fee. Hiwalay ang finance charge. MCC will multiply 3.54% sa average daily balance mo for the month. Kung 7222.80 palagi ang daily balance mo since start ng cycle mo, finance charge will be 3.54% x 7222.80 = 255.69 pesos.
Hi po Ask ko lng po if how much ang mgiging finance charge if ndi po mbabayaran ang 7222.80 sa due date?nd nsa finance charge na rin po ba ung interest rate na 3.54 ng bnko?MCC po gamit ko…tnx po!
Hi Ms. Nora,
RESENDING..I have same case as ANN po not Jane, follow up po sa answer nyo..Thanks a lot. Mine is BDO Credit Card.
MESSAGE FROM ANN:
Hello po Ms. Nora, I came accross this site kasi I was charged 6,156.65 for Finance Charges on my Metrobank Femme Visa (3.5% monthly interest).
Here’s my situation:
Total Amount Due: 131,000
Due Date: Jan 30
Paid on Due Date (Jan 30): 90,500
Paid on Feb 3: 40,500
Pwede niyo po ba iexplain kung tama lang itong chinarge? Kasi I started computing pero parang ang laki pa din ng naging Finance Charges.
I called Metrobank twice, hindi nila mai-breakdown sakin kung pano cinompute yung Finance Charges kasi “system computed” daw ito. Instead, magsend daw sila ng sample computation. They are not helpful at all.
Hi Ms. Nora,
I have same case as Jane, follow up po sa answer nyo..Thanks a lot. Mine is BDO Credit Card.
Hi Jane, yes, macha-charge ka na kasi na-late ka, kahit 1 day lang. Pero check your statement, baka naman nausog ang due date mo this month. Nagtaka ako na steady na 15th ang due date mo, eh nagmo-move naman ang mga cycles.
How much is the penalty? Banks vary in their penalty amounts. Halimbawa itong Mastercard M Free ko, ang late payment fee is 700 pesos or 7.5% of the minimum amount due, whichever is higher. Itong BPI Amore ko, 500 pesos or 5% of past due amount, whichever is higher. Nakalagay ang penalty rate sa statement mo. Kung ganito ang penalty rates mo, 700 or 500 pesos ang penalty mo, kasi ito ang higher amounts.
Hi po!asked q lng po sna f 1 day n late ang payment s credit card Mron po b penalty charge?1,550 po ang monthly payment every 15th of the month ang due date and accidentally po 16 n po aq nkpagbayad..mgkano po kya ang penalty kc hnd dn po msabi ng teller kc wla dw po cla access pra mlaman f mgkano ang charge..thank you b advance po..
hi po ..me existing cash to go po ako ..npapasama pa rin po b yun sa pagcompute sa finance chrge ko..
nsa 7k po ung total monthly ng cash to go ko.. then
nababayran ko namn po cia monthly..sa pagbebreakdown po kc ng mga nid ko byrn eh nkasma din ung cash to go.. tpos mkikita mo naksa previous balance ksama dun ung cash to go.. ganun po ba tlga un..slamat
Hello po. Tanong ko lang po. May utang po ako since September last year. unti-unti ko po binabayaran dahil tight sa budget. so syempre po with finance charge. Then nung nag ka pera na po ako binayaran ko ng full. here is the breakdown po
Due date: Feb 10, 2017
Balance: P23,556
Feb 06: paid P23,500
Feb 10: paid P100
all these nag reflect po sa SOA ko. so nung dumating ung lates SOA ko nagtaka po ako bakit may 407.20 ako na finance charge. Na binayaran ko na po ng full last month. Sakit sakit po ng 400 na hindi naman na sana kasali sa budget ko. kasi nga binayaran ko na ng full last month and was not expecting to see any finance charges on my SOA this month. Naiinis na talaga ako sa Metrobank. I felt cheated.
Kindly advise po. Thanks. Anyway I am using Metrobank Visa
Thanks ng marami 🙂
Hello po Ms. Nora, I came accross this site kasi I was charged 6,156.65 for Finance Charges on my Metrobank Femme Visa (3.5% monthly interest).
Here’s my situation:
Total Amount Due: 131,000
Due Date: Jan 30
Paid on Due Date (Jan 30): 90,500
Paid on Feb 3: 40,500
Pwede niyo po ba iexplain kung tama lang itong chinarge? Kasi I started computing pero parang ang laki pa din ng naging Finance Charges.
I called Metrobank twice, hindi nila mai-breakdown sakin kung pano cinompute yung Finance Charges kasi “system computed” daw ito. Instead, magsend daw sila ng sample computation. They are not helpful at all.
Hi Ms. Nora, ask ko lang po. Newbie cc user here, ask ko lang po. I was planning to get smartphone plan in one of our networks, The cashout of this particular smartphone is P13,200 then P2499 (15699), If i paid that exact amount using my cc before the due date, how much will i pay monthly If this plan is 2499 monthly and i’ll pay that bill thru my cc? (this is for 24months) please enlighten me, thank you and happy holidays
Gud pm, ask ko lang po kung how much posibleng finance charge ko like amount due ko is 28k pero i will only be paying 20k, kaso next month may babayaran akong 20k aside sa balance na 8k.
Hi Eshiel, napakaganda ang pagbabayad mo kaya hindi mo nakikita ang finance charge sa bill mo. Sabi mo kasi you pay whatever you have purchased. Sa bill mo, merong Due Date, Minimum Amount Due at Total Amount Due. Kung binabayaran mo in full ang Total Amount Due before due date, walang finance charge. Ang nagkakaroon ng finance charge ay yong mga nagbabayad ng Minimum Amount Due lang, dahil merong naiiwan na amount due, at ito ang nagkakaroon ng finance charge. Puede itong nagkaka-charge every month, at nagpapatung-patong kung hindi nababayaran agad.
Maganda ang payment habit mo (Paying in full the Total Amount Due before Due Date), ituloy mo yan, para wala kang finance charge.
Gudpm po ms. Nora..itatanong ko lng po sana kung anun yung finance charge n yan.mag 2 yrs. Nq nagbbyad ng creit card ko po. Nw ko lang napansin yung finace charge n yan san po b yan nangga2ling? Bket may ganyan? Hndi ko kase tinitingnan yung soa ko ang ginagawa ko lang kung magknu yung napurchase ko sa store yun binbyaran ko.pwde po paki paliwanag saken? Ang date po tlga payment ko every 7 of the month pero kc nung kinuha ko yung card ko sbi saken may 20 days pa daw po yun kay every 25 po ako nagbbyad..sana po mapaintndi nio saken.tnx po
Hi She, have you called Metrobank? There must be an error in the computation. If that 28,297.43 is a new purchase and was not charged in the previous SOA, the whole amount of 28,297.43 will be charged with interest in the next SOA, if it was not paid in full. I also experienced that and that was their explanation, but the finance charge should not be that much. Ask how they computed it when you call. Metrobank CCs are not really the best; BPI CCs are much better, that’s why I have cancelled my Metrobank Visa, keeping only my no-annual-fee Mastercard. I hope you’ll get a better response from them.
Hello po,, I accidentally dropped on your site.. I’m having an uncontrolled anger and increased anxiety early regarding my METROBANK CC.. Last month I was billed 28,297.43. my Payment Due Date was on 11/02/16. However, I was not able to received the SOA earlier than expected and I really wanted to pay it in advance to avoid any charges.. so I paid 28,000 on 10/28/16.. and because I don’t have my SOA with me,, I was not able to pay the exact amount.. (got a balance of 297.43 pesos). 11/11/16 I was finance charged with 1,452.58 which is really high than the amount that I was not able to pay!!!! Tama po ba un? balance o 297.43 versus finance charge of 1,452.58????…. Am I just missing knowledge and information about the terms/policy of MCC regarding the finance charge.. salamat po..
Hi joseph, ang minimum due usually ay 5% of total amount due, so kung 10k yong total amount due mo, 500 pesos yong minimum due. Now, kapag 500 pesos lang ang binayaran mo, ang mababawas lang sa 10k is 150, kasi yong 350 mapunta sa interest. So ang total amount due mo next month is 9,850. Pero hindi ito exact ha, kasi their software uses average daily balance, so merong mga cents or few pesos yan na higher or lower. Outright per month na ako nag-compute (meaning yong 10k naka-1-month sa card), using 3.5% per month na usual interest ng credit cards dito sa atin.
That means, kung hindi mo dadagdagan ang utang mo na 10k at puro ka minimum due, mababayaran mo lang ang 10k after 3 years (based on bankrate.com calculator), at kung idagdag mo pa yong annual feee, baka ma-stretch to 5 or 6 years. At 10k lang yon!
mrs nora ask ko lang po example ang bill ko po e 10,000 tapos binayaran ko lang po ung min, magkano po ang next bill ko assuming na d ko muna ginamit ung card ko the ff month? tnx po…
Hi Anne, usually ang late payment charge ay ganito: 700 pesos or 7.5% of the minimum amount due, whichever is higher. Look for this in your statement. Kung halimbawa ito ang penalty ng card mo, at minimum mo yang 1,432.20, ang magiging charge mo ay 700 pesos. Yong magiging additional finance charge dahil sa late payment ay hindi na masyadong malaki kasi you paid the day after due date.
Hi Ms. Nora, my credit card bill is due Sept 8 amounting to 1,432.20. Paid the amount in full a day after – Sept 9, my bad i totally forgot to pay it on time. Around how much ang magiging late payment charge and finance charge ko?
Hi Filomena, ang credit card nio ba ay nag-offer ng zero-interest na promo with Abenson? Usually BPI ang nag-o-offer nito. At nag-avail kayo ng zero-interest promo? If yes, walang finance charge at walang interest. Walang additional cost. Yong price divided by 6 months, yon ang babayaran mo every month. Promo kasi ito.
Gud am ask ko lng po if me finance charge sa bangko ang kinuha kong ref sa abenson na 0percent promo? Thank you po asap…
Hi po, ask ko lang paano kung pinurchase ko pong item using credit card is may installment, anu po yung masasama sa pagcompute ng financial charge, yung full amount po ba nung item or yung price nung installment?
Hi Zel, I’m glad that’s your commitment, as credit cards can hurt terribly if not handled correctly. After the statement date, as soon as you’ve got the money, don’t wait for the due date, go ahead and pay — it will reduce a bit the interest and will you make you feel good you’ve already paid.
Thank you mrs nora. Your answers are helpful po. I am a new credit card holder and i want to keep a good credit rating.
Hi Zel, no, it’s not bad rating. It’s bad if you do not pay the minimum due by the due date. If money is very tight, it’s okay to pay only the minimum due, or a little bit above the minimum due, But anytime you can stretch your budget, pay much more than the the minimum due. Why? Because if you pay just the minimum due month to month, your loan will take a lifetime to pay. You’re just paying the monthly finance charge every month, and the principal loan is reduced by only a few pesos.
Hi Zel, if you pay more than the minimum due, you will be able to pay your loan faster.
If we do not settle in full by the due date, is it already bad credit rating?
Hi po, what’s the implication if more than the minimum amount is paid?
Hi Estrel, what credit card is this? That finance charge is super too much! That’s almost 50%! Is that your total balance? What about the previous balance? The usual credit card interest rate is 3.5%, so the finance charge should just be around 65 pesos. Ask them why the finance charge is that high.
Hello po may I ask how much is the interest charge for 1817.63 for all days? I’m being asked to pay 895 for finance charge. Thanks
Ok po Maam Nors gets po. Salamat po. Godbless
Hi kimmy, 3.5% is the usual interest rate for most credit cards in the Philippines. Pay the minimum due amount on the 26th, and then pay the rest when you get your salary. The interest for the first month is about 140. If this is cash advance, the interest could be higher as interest is computed exactly from the date taken.
Maam Nors paano po ba icompute yung pagpataw nila ng Interest? yung sa ate ko po ay 3.5% daw, mataas po ba yun? bale nakakuha na po kami ng 4000 at mukhang hindi po mababayadan sa exact date sa 26 daw e sweldo po e sa 28-30 pa? magkano po kaya Interest nun? Salamat po Maam.