Credit Cards

[XilR8 0]

I just got a Japanese credit card, and I seem to have various payment options - 3 month, 5 month, 10 month etc. But there is also a "revolving" option. Can anyone explain what that is?

 

Back home you just buy, and then pay back as much as you can each month, as long as you meet the minimum payment. Can't you do that here?

[indosnm 0]

 Quote:

Originally posted by XilR8:
Back home you just buy, and then pay back as much as you can each month, as long as you meet the minimum payment. Can't you do that here?

Most cards here are paid off in full each month. If you actually do the above ( as quoted) , then financially you are very stupid!

[bobby12 0]

I thought it means when you BUY something you can pay in 5, 10 installments. Ive been offered that a lot (maybe I look poor). Its actually a good idea if u are using a UK credit card as the exchange rate is always going in your favour over time.

[XilR8 0]

 Quote:

Originally posted by Indosnm:

 Quote:

Originally posted by XilR8:
Back home you just buy, and then pay back as much as you can each month, as long as you meet the minimum payment. Can't you do that here?

Most cards here are paid off in full each month. If you actually do the above ( as quoted) , then financially you are very stupid!

Not really, as doing this allows you to buy things that are more expensive than you could afford to pay for in just one go.

Anyway, I didn't ask for judgement on my financial wisdom, I just want to know what a revolving payment option is.

[gamera 0]

XilR8

 

A revolving payment option is a way for card holders to pay the amount devided into some months until the amount is all paid out.

So when you buy something by your credit card by choosing that option, each month they invoice some to your credit card. Maybe I can say it's kinda loan? You are to pay some interests which is not small That's one of ways for them to earn.

If you choose the revolving option in some different time while you still have the previous balance, the new amount for the revolving option is added to the balance. They set some standard for you how much you should pay each and every month. E.g. while your balance for revolving option is less than 500,000 yen, you are to pay 20,000 yen each month but the balance gets more than 500,000 yen you need to pay 30,000 yen each month... something like that. But details depends on your card company, so just ask them :-)

Make sure, the interests is not small. I have never choosen that option yet, so I am not sure how it goes.

[indosnm 0]

XilR8

 

Like gams said revolving is a number of times that you decide to pay the purchase off. You can usually choose 1, 3,5,7,9 times etc.

 

With each company here you will a different deal. Some allow revolving in which compared to the aussie style paying minimal balances is sometimes much cheaper. But like gam's said for big purchases the interest rates are mad. I made the mistake once of buying a computer on revolving credit. Found out that was paying around 30-35% a month in interest so I quickly stopped that.

 

enjoy your credit card debt

[gamera 0]

30-35%??? That is crazy, Indo. I think it might be interest for cashing. I checked the interests for revo at my cards, they all say around 12-13%. Still not small.

[indosnm 0]

yes it was cashing Gams! (long time ago... memory getting worse!)

I got the first bill and my wife told me the amount for the principal was 23,000yen and interest was 12,000 yen!

I quickly stopped that and ever since if i can't pay cash i don't buy it.. A very good lesson.

Foreign CC's we can use cash advance but the rates aren't as crazy as that, although pretty bad!

[Kumapix 0]

I love the Japanese cc's because they work just like a debit card (if you use the ikkatsu barai). No need to make sure you pay on time, it's done automatically.

[gamera 0]

Usually it's very convenient especially when you buy something through internet. You don't go out to buy them, don't need to go to a bank to transfer the bill.

 

But sometimes the other (seller, maker etc )forget to cancel our order even when we tell them not to renew a contract etc.

Once I had an annual contract with a hosting server in Texas. But their downtime was scary much more than I supposed. So I didn't renew the contract last year and told them it 1 month in advance as the contract sheet said but they forgot it and invoiced the bill to my credit card. I e-mailed them to explain why that happened and asked them to refund it and they did. They apologized BUT... it happened this year as well. Again they charged the bill to my credit card, of course I e-mailed them again to refund it. They refunded it but it may happen again, so I asked my credit card company to change my card number.

 

I guess if the other were not a reliable merchant, it may be risky.

 

Any weird experience at some auctions?