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how does interest and revolving interest work

Nubank is a financial services company that, in addition to a digital account, offers a credit card option to some customers.

The card, which has no annual fee or fees, helps many people. However, for customers who do not pay their bills on time, they may have to pay high fees due to Nubank interest. Check out some information about revolving interest on the Nubank card.

What this article covers:

When is interest generated on the charge of the Nubank invoice?

Nubank interest will be charged on the invoice when the customer delays the payment. Therefore, it is necessary to pay attention to the date of the tickets.

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If you have an overdue invoice, you can generate another invoice automatically through the application, without having to contact the service channels. However, a fee will be charged for late payment.

What is Nubank’s interest rate?

The value of Nubank’s interest varies according to each customer, it can range from 2.75% to 15%, and a fine of 2% will be charged on top of the amount that was not paid.

To make the payment of an overdue invoice, just click on the menu on the application’s home screen on “Pay”, and then click on “Generate bill”. The new invoice will be due on the next business day, and the amount will be increased with Nubank interest caused by the delay.

If the customer does not have the total amount of this invoice, there is the possibility of creating a new invoice with a lower amount. However, either the invoice will be automatically paid in installments, or the customer will enter the revolving credit. In revolving credit, the customer needs to pay the interest and the IOF about the value.

How does the revolving interest on the Nubank card work?

When a financial institution offers credit to the customer, the company expects that customer to fulfill commitments and pay the loan amount on the due date established in the invoice.

If the customer is unable to pay the total debt, and delays payment, the amount of the debt goes to the invoice for the next month and the bank starts to charge revolving interest on top of this amount. This is called revolving credit.

The problem is that the invoice will get higher and higher and will generate a snowball, which makes paying the debt even more difficult.

Nubank has one of the highest rates on the market, so paying attention to payment terms is crucial for a healthy financial life.

Nubank offers credit cards to its customers, but it has one of the highest revolving interest rates on the market. Learn more about how these interest rates work

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