What you need to know about
deferred (revolving) payments

Q: What is a credit card?

A credit card is a payment instrument (you use it to pay) and it is also a credit facility (financing we make available that you can use to pay for something at the time of purchase). When paying with a credit card, you do not pay for purchases with your account balance on the spot, but rather pay the total amount you have spent during the agreed period (usually one month) at the end of this period (usually at the beginning of the following month). You will not have to pay interest for this. If the card offers deferred payments, or is payable at the end of the month but you use it with the deferred payment method, then, contrary to the above, you will not pay the total credit spent at the end of the agreed period; instead, you will pay it in monthly instalments that are used to pay down the credit used gradually, with interest accruing from the time you use the credit until it is paid in full.

Q: What is a revolving credit card?

A revolving credit card or a deferred payment card is a type of credit card in which you repay the credit that you used over time instead of all at once at the end of the agreed settlement period. It consists of repaying the credit used in convenient instalments by paying an associated interest that is detailed in each case in both the pre-contractual information and in the contract. In any case, interest is generated as soon as you make a purchase. In addition, the credit is revolving, meaning that it goes down when you make credit payments with the card but as you pay off the credit that you use, it becomes available again for future purchases. The deferred repayment of credit will depend on how much you choose to repay each month and whether you continue to draw down further credit simultaneously. The higher the monthly instalment selected, the sooner you will repay the credit drawn down and, therefore, the lower the cost of the credit, as you will pay interest for less time, and more of the monthly instalment will be used to repay the principal. There is no limit to the amount of the monthly payment, meaning you can choose a monthly instalment that pays off the full amount of credit used that month, at the end of the month, but paying interest from the time you used the credit until said credit is paid off in full. Bear in mind that any credit card can be converted into a revolving card if it has, among its payment methods, the revolving payment method for repaying the credit and you choose this method.

Did you know that cards have different payment methods?

Depending on the type of card, you can pay for a purchase and see the payment instantly in your account, use the credit and pay for everything you have spent at the end of the month, split the payment of what you have bought or even deferred it.

Here we will tell you what deferred (revolving) payment is and give you tips on how to use it responsibly.

What is it and how does it work?

The deferred payment method, known as "revolving", allows you to finance your purchases in a different way. With "revolving" you can pay in instalments the credit you have used for your purchases in fixed monthly instalments and with interest.

How is it different from other forms of payment?

What makes revolving different is that you don't have to pay everything you owe at the end of the month. What's more, you can choose to pay a minimum amount each month and the rest you can pay the following month, but with interest.

This process is repeated month after month, so that the outstanding balance you owe becomes "revolving". This allows you to keep buying until you reach your credit limit, while paying that minimum each month.

How does this payment method work?

At the beginning, you are set a credit limit, which is the maximum you can use.

Every time you use credit to buy something or for any other reason, that maximum is reduced.

Every time you put money back in (such as when you pay your accounts or get a refund on something you bought), that available credit goes back up.

Ready to learn more?

Monthly Payment Selection
You decide how much you are going to pay each month, always complying with a minimum established by the entity so that the debt does not last too long. Note, there is always associated interest!
Modification of the Repayment
You can also change the amount of the instalment, either increasing or decreasing, although this will depend on the limits set by the entity. Remember, the higher the instalment, the less interest you pay and the faster you pay off the debt.
Use of Available Credit
And while you're paying, you can still use the card to make other purchases, as long as you don't exceed the cash limit you've been given and you have enough money left over.

Recommendations for responsible use

Avoid very small instalment amounts

Avoiding this helps you reduce the repayment time of the debt by avoiding prolonging the amortisation and therefore paying less interest. It is advisable to choose instalment payments that can be managed within a reasonable time frame to keep better control.

Track how much you spend

Remember to read statements and regularly check your spending and transactions.

If you are not sure about something, ask

If you have any questions, do not hesitate to contact us, there will always be specialised people to clarify what you need.

Use it responsibly

Review your spending and decide for which purchases it might be worthwhile, instead of using it as a revolving method.

What should I take into account
when choosing a monthly instalment amount?

The higher the monthly instalment chosen, the sooner the credit will be repaid and therefore less interest will be paid.

To find out when a revolving card debt is due for repayment and the amount of interest due on it, you can access the revolving calculator here.

FAQs

What is a credit card?

A credit card is a payment instrument (you use it to pay) and it is also a credit facility (financing we make available that you can use to pay for something at the time of purchase). When paying with a credit card, you do not pay for purchases with your account balance on the spot, but rather pay the total amount you have spent during the agreed period (usually one month) at the end of this period (usually at the beginning of the following month). You will not have to pay interest for this.

If the card offers deferred payments, or is payable at the end of the month but you use it with the deferred payment method, then, contrary to the above, you will not pay the total credit spent at the end of the agreed period; instead, you will pay it in monthly instalments that are used to pay down the credit used gradually, with interest accruing from the time you use the credit until it is paid in full.

If I use my credit card will I have to pay interest?

Not always. If you decide to pay with a credit card using the end-of-month payment option and thus repay all the credit used during the agreed settlement period, you will not pay interest. However, if you pay with a deferred payment credit card or if you choose to modify the payment method of your standard credit card with the deferred payment option, you will pay interest because of the greater flexibility afforded by this payment method, since you will repay the credit used in monthly instalments of the amount you choose, instead of paying all the credit you used.

What is a revolving credit card?

A revolving credit card or a deferred payment card is a type of credit card in which you repay the credit that you used over time instead of all at once at the end of the agreed settlement period. It consists of repaying the credit used in convenient instalments by paying an associated interest that is detailed in each case in both the pre-contractual information and in the contract. In any case, interest is generated as soon as you make a purchase.
In addition, the credit is revolving, meaning that it goes down when you make credit payments with the card but as you pay off the credit that you use, it becomes available again for future purchases.

The deferred repayment of credit will depend on how much you choose to repay each month and whether you continue to draw down further credit simultaneously. The higher the monthly instalment selected, the sooner you will repay the credit drawn down and, therefore, the lower the cost of the credit, as you will pay interest for less time, and more of the monthly instalment will be used to repay the principal.

There is no limit to the amount of the monthly payment, meaning you can choose a monthly instalment that pays off the full amount of credit used that month, at the end of the month, but paying interest from the time you used the credit until said credit is paid off in full.
Bear in mind that any credit card can be converted into a revolving card if it has, among its payment methods, the revolving payment method for repaying the credit and you choose this method.

How do I take out the card and what rights do I have?

Before you take out the card, imagin will give you (during the application flow process, and also through the Now digital banking service as well as through email) the pre-contractual information (INE for credit cards) for the card contract you choose before we show you the contract. It is important that you read the document carefully and, if you want, compare it with offers from other banks. This document describes important financial conditions that you should know about the card, as well as other relevant information about the card contract (such as the right of withdrawal, the payment methods of the card, your assigned credit limit, etc.). Take your time to read it. We will honour the conditions offered for 3 days so that you can sign the contract once you have thought about it and decided if the product is right for you.

Therefore, before you take out the card, you have the right to:

Receive correct and sufficient information about the product you are going to apply for.
Receive the pre-contractual information (INE in the case of credit cards) before you sign the binding contract.
Take your time to decide whether or not to sign up for the card, once you know the applicable financial conditions (detailed in the INE). We will honour the financial conditions detailed in the INE for 3 days.

Can I withdraw from the contract once it has been signed? And can I cancel it at any time?

Yes. You have 14 calendar days to withdraw from the card contract. You do not have to provide a reason. Once you ask to withdraw, we will cancel the card in 24h, and deem the contract terminated. If you have used the card and have not paid back the credit used, you will have 30 calendar days to do so, together with any interest that may apply.

After the first 14 days, you will be able to cancel the contract unilaterally at any time, without providing a reason, although you will first have to pay any amounts you may owe. As soon as you request it, provided there is no outstanding debt, we will cancel the contract in 24h.

You can request to withdraw from or cancel the contract by the following means: Through the imagin app or at an ATM. To request it through the imagin app, you have to take the following steps: Go to the "Settings" tab, located at the top right of the screen; Select the option "Withdraw from contracted products"; Fill in the form that is shown with the information of the card contract you wish to terminate.

Where can I see the contract that I sign? Will you give me a copy?

Yes, a copy of the contract will be provided to you. We will post it in the section to consult the imagin contract within the settings of the imagin app. This way, you can read, download and print it whenever you want.

Consequences of non-payment

Non-payment (late payment) generates interest.

If you are late with a payment because you do not make it by the end of the payment period, the unpaid amount accrues interest on a daily basis.

These interest rates are calculated based on an interest rate, "late interest", which is defined in the "Special Terms and Conditions" of your contract. Interest payments are made at the end of each settlement period.

In addition, if your account remains unpaid for more than three months, we can terminate your contract without notice and demand the amounts you may owe: both unpaid overdue debt and outstanding debt that has not yet fallen due.

In addition, non-payment of the card debt may give rise to compensation in favour of the Entity for the costs of claiming non-payment for the personalised steps that the Entity is obliged to take to recover the agreed instalment that is unpaid on maturity.

How can I calculate the monthly instalment amount?

To make it easier to calculate the instalments and interest, we offer the following tool: https://clientebancario.bde.es/pcb/es/menu-horizontal/podemosayudarte/simuladores/calculo_cuota_tarjeta_revolving.html

To use this calculator, enter the interest rate of your card, the outstanding balance of the card, and the monthly instalment you want to pay each month. The calculator will provide an estimate of how long it will take you to repay the debt and how much total interest you will pay.

This tool will help you make more informed decisions about how to manage your debt, and thus avoid additional costs.

If you have any questions, get in touch through our contact channel:
93 887 25 08 / 900 211 211.