Understanding Finance Charges When Using GCredit

Understanding Finance Charges When Using GCredit

After my recent post about getting approved with GCredit using the Globe’s Gcash app, I usually get asked about how the finance charges or the interest works. To be honest I feel quite confused as well when I read their terms and conditions but after using it, I can finally share it with you.

Now that I understand their finance charges I am happy to tell you how these works.

Honestly, in the first month, I missed a payment for a few days since I let my mom use my sim card for a while after she lost her globe sim. Just a heads up they call as soon as a day of a missed payment. Apparently, I wasn’t able to prepare for paying it that time because my salary landed to every biller and groceries I have to deal with when I was advised by my mother.

Having that said I bet you wanna know what are the types of finance charges they give their users. There are two.

Let’s start with Penalties

As mentioned above, I wasn’t able to pay on time. After your due date, they’ll charge you a fixed amount of 200 pesos as a penalty for late payment.

This is the first time I got charged for a penalty and I feel so bad about it. 200 pesos is as much as my 2 days of travel allowance for work.

They charge you more if it’s late more than 30 days so here’s the list:

31-60 days – 500 PHP

61- 90 days – 900 PHP

91+ days – 1500 PHP

I don’t know if this charge will stack or how it works but hope no one gets charged for these amounts. Okay?

The other charge is called interest

So this is the most confusing part. They charge interest of 5% for every 30 days. In the past when I just got approved, I thought it works like with credit cards. When you purchase with a credit card it doesn’t charge you any interest as long as you pay it in full before due dates. With GCredit they charge a prorated amount of interest from the day of purchase. The interest will be shown on the statement but its already counting as soon as you use it.

I will give you an example. Aug 1 you purchased an item for 1000 pesos. Today is August 9. Your purchase is 8 days old now. So we can use two formulas here.

Formula 1:

(5%/30days)*(no.of days) = interest rate

Purchase amount*interest rate = running interest charge

So for the said purchase above it gonna work like this:

(.05/30)*(8)=.013 or 1.3%

1000*.013=13

13 pesos is your current interest charge for that August 1 purchase. It will run until you finally settle that amount.

Related: New GCash Feature (GCash Invest Money)

Formula 2:

((Amount*5%)/30days)(no of days)=interest charge

That formula should work on a scientific calculator. But to do step by step follow this below:

1000*.05=50

50/30=1.66

1.66*8=13.28

It’s just a matter of rounding off.

In my current bill, I got charged for 200 penalties for the past month payment issues and 76.23 for the interest. I only had two purchase for this billing cycle and the balance that was paid late is 1594.24. Basically, it runs with a prorated interest since it was paid on July 29 which is included in this cycle. So I computed those two purchase and outstanding for the interest and it gave me an answer of 76.9 pesos. I’m unsure of the computation for the outstanding though.

1594.24*.05 / 30 * 20 = 53.14

565.55*.05 / 30 * 10 = 9.43

1433.25*.05 / 30 * 6 = 14.33

Anyway having the idea on how to compute the charges is good enough even though we don’t really get the exact amount.

Related: Wise Usage of Credit Card

In my own thoughts, GCredit isn’t really good for regular purchases. It’s more like an emergency fund for your groceries. I don’t really suggest using it regularly because it would make your expenses a bit higher. It’s still better to use debit cards or credit cards for cashless transactions.

Of course, we don’t really expect a lending company to give you 0% interest for purchases to be paid within the due date. However, GCredit should somehow mimic this kind of advantage you get on regular credit cards.

So I hope this article helps. If you have other questions or comments feel free to ask. Although I can’t really answer account related issue. You can directly email GCash or Fuse Lending:

[email protected] or [email protected]

This Post Has 20 Comments

  1. You can only use gcredit once although you still have remaining credit limits?base on my experience

    1. So far I am able to use it on multiple purchases

  2. Thanks for the info

  3. this is a very helpful blog, thank you so much! I got offered to activate my gcredit right away (since I used gcash pretty regularly) but haven’t really got the time to do anything about it. but now I got some time to poke around the app and was reading the fine print– I DID NOT like how it will auto debit any pending amount from your Gcash if it will fit the due amount. so I paused, and looked around the net for reviews and found your blog. THANK YOU so much for explaining how the charging works IRL. its practically useless as a credit card since it charges immediately from Day 1 of the credit purchase. indeed its flattering to be considered trustworthy to be practically auto qualified for a credit line, but as you have experienced, it’s even worse than regular credit cards lol!

    1. Hi thanks for your feedback. Hope you’ll follow this blog. 🥰

      Yeah I no longer use it as well. (RipGcredit) Hahaha lol

  4. Pano kapag for example 30k na limit ko tapos ginamit ko gcredit worth 20k, 30 days to pay lang talaga siya? Dapat sana may loan term choices para may point naman, sino ba gagamit kapag i rereturn mo rin loan mo in 30 days tapos 20k.

    1. Hi po you can pay in longer terms but please take note that it will charge penalty after 30 days plus the daily percentage of interest. Not really advisable to use for large purchases

  5. To be fair this is how some credit card companies charge also! If you don’t mind I want to share my experience. I applied for a secured credit card from Security Bank. (Please just google what it is if you’re not familiar with it.) Anyway, for the first few months it was great cause I wasn’t charged interest cause I always paid on time. Then, one month when I forgot to pay on time, I was SHOCKED that my 3k bill had P200-300 interest. I actually don’t remember it that clearly anymore but it was CRAZY. I was so angry! To add salt to the wound, when I withdrew my deposit, they charged me P500! (During my last month in the lock in period, I informed them to just take whatever I owe from the holdout deposit. They said for them to return what’s left of MY money, I had to pay P500) WTF! Long story short – I shredded that card after that horrendous experience and VOWED TO NEVER open an account with them again.

    To everyone, please make sure you understand how they’re charging interest before getting a credit card from certain companies.

    Thanks so much Miely for this post!

    1. Hi thanks for sharing your experience… My mom had an acct withnsecurity bank before but she swotched over to bdo.. When I had a secured card woth BPI the hold out deposit is non withdrawable so I never encountered such charge.. But with credit card if it has oassed the due date even just for a day the finance charge is usally around that amount because they charge interest and late payment fee all together…that is why it is quite pricey to pay finance charges unlike with GCredit.. They charge interest from the date of purchase not plus penalties if late payments so I would still prefer using credit cards than GCredit.. Thanks again for passing by and sharing your experience with Security Bank. Hope to see you here again. 😊

  6. Paano kapag nag apply kana ng gcredit pero hindi mo po ginagamit. May charge din po ba yun? Thank you 🙂

    1. Hi wala po interest will apply only if used.

  7. Thanks 🙂

    1. your welcome po <3

  8. Hello po! how can i disable or terminate my gcredit account? As i was reading your blog i had the same experience as yours. I was shocked when i was charged immediately a 200 pesos for a just a 1 day delay in payment. I sent an email to their customer service but in 2 weeks since then no feedback received from them, i even called their customer service hotline but they cannot help me with my concern to waive the penalties. It made me decide to send an email complaint to NTC and BSP.

    They are stressing me too much and charging us too much compared to other credit card companies.

    Please advise on how i will terminate my gredit account. Thank you in advance!

    1. Hi.. I really don’t know how to terminate a gcredit accout.. Try emailing gcash directly instead of fuselending because they are more responsive than fuse.. [email protected]

  9. how bout your gredit account is it still active? are you still using it?

    1. We rarely use gcredit since we have credit and debit cards..I really don’t prefer using it since it has interest from the date of transaction unlike with credit cards the interests are only apllied if not paid in the grace period..

  10. You have mentioned in your above blog that you incurred a penalties of P200 did you pay for it?

  11. Hi, yeah I believed they’ve paid for it since they’re still using the GCash account. My sister told me that GCredit automatically debits the payment from her GCash balance when its due.

    The SECRET (since you’re curious) about this blog is that I never owned a GCash account since my IDs were lost when I was pregnant (I only had a soft copy of them). I wish I could have my own account.

    Because I liked GCash features I usually ask my family to try it out so I can put it to my blog and claim that it is mine(They don’t regularly use these features ). The only transactions I make with their Gcash personally is with the use of AMEX virtual card for app purchases, my email is somewhat shared with a few relatives and friends that is why I avoid having my card details from being exposed there and the good thing there is that AMEX virtual card of GCash allows you to change security code anytime you need it.

    SO far in any of the GCash features that we’ve tried out I haven’t found a way to cancel or terminate an account. I supposed that you have to clear it first before requesting for termination if possible.

  12. I got shocked when I received an interest when I paid full before the due date. It was only after I got an increase on my gcredit that I experienced this. Everything you wrote in this blog is very helpful and I understand it now. For now, I will only use my gcredit on emergencies and never for leisure like I used to.

Any comments?

miely

Miely is a working mom that writes during free time about personal thoughts and experiences. She loves sharing things that may be useful for other people too.
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