When you use your credit card to make payments, these are recorded in your card account statement as debits. As a general rule, banks update the card statement, movement to movement, as with a normal debit account.
To manage the credit card in CG Bank, you must first create the account corresponding to the card. Click Accounts in the Setup menu, and then the Create Account button.
From here, you will manage your credit card account as if it were a regular account: you periodically access your online banking and import the card statement to the CG Bank, categorizing the movements, allowing you to easily control monthly expenses on credit.
The “provision” of the card
From time to time, the bank debits in its current account an amount, which will correspond to the sum of:
- Amortization (partial or total) of the debt on the card
- Interest corresponding to the amount due
The amortization corresponds to a transfer from your account to the order to the credit account. This is not an expense – this has already been registered previously in each of the movements that made on the credit card and that should have previously imported – but a capital transfer . It must therefore be registered in CG Bank as a transfer from your account to the order for the account on credit.
Interest is an expense charged by the bank depending on the amount owed
The fee and other conditions on your card. They must therefore be recorded in an expenditure transaction.
If your bank registers the payment of the credit card in a single movement and does not tell you how much the amortization and interest correspond, consult the extract of your credit card and see how much was amortized. Then you will have to subtract the amount debited from the current account with the amortized amount to know how much you paid in interest.
Manage credit card in CG Bank
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So, to manage a credit card in CG Bank you must:
- Create a new account that corresponds to your credit card
- Import the statement or periodically record the expenses of your card. Your credit account balance should decrease with each transaction.
When the bank debits the installment in its current account, it should not register it in a single movement, but in two:
- A transfer transaction corresponding to the amortization
- An expense transaction corresponding to interest, categorized as “Bank Expenses: Card Interest”
We strongly recommend reading the article How can I manage my housing loan in CG Bank that deepens the issue of managing any credit, and why should separate the installments in interest and amortization.