So today we talk about using your credit card and the vocabulary involved in that. And what inspired this episode was a video that shows US president Barack Obama telling the audience about a little incident involving his credit card. Listen to Obama talk about it [Obama speaks]. So he said “(…) I guess I don’t use it enough. So they thought there was some fraud going on. Fortunately Michele had hers. I was trying to explain to the waitress, no, I really think that… I’ve been paying my bills.”
So what happened? Well, Obama’s credit card was declined. That’s when you try to make a payment using your credit card and the shop person operating the little credit card machine returns the card to you and says “Sorry, it’s been declined.” And why would a credit card be declined? There are a few possible reasons… Sometimes it’s just a mistake and if you try it again, it’ll work. Other times, your card being declined means that you haven’t paid your credit card bill! Mr. Obama said that he tried to explain to the waitress that he had been paying his bills – more specifically, his credit card bill. And the other common reason for your card to be declined is thatyou have maxed out your credit card.
When you max out your credit card… That means that you have used up all the credit you had available for a certain period of time. Different credit cards have different spending limits, right? Do you have a credit card? What is your spending limit? Some people may have a spending limit of five hundred reais on their credit card. Other people may have a spending limit of two thousand reais, and so on. That’s the amount of money you can use to make payments. If you try to go over that limit – if you try to go over your spending limit, your card will probably be declined. Why? Because you have maxed out your credit card. Before being able to use your credit card again, you will have to make a payment.
You will either have to pay off your balance, or pay the minimum paymentevery month. When you pay off your balance, that means you pay your balance in full. Your balance, which you can see on your credit card statement, is the total amount of money you owe. So you can pay it in full, every month. Or, you can choose to pay only the minimum payment.
So have you ever maxed out your credit card? I have. It was a long time ago, and I wasn’t being very responsible with my spending. I started to spend, to pay for stuff with my card, and then one day my card got declined. That happened because I had maxed out my credit card. And in the past, sometimes I used to pay only minimum payments. Nowadays, I’d rather pay off my balance every month. I’d rather pay my balance in full if possible.
Do you look at your credit card statements often? I get mine on email- no more paper for me. Has your credit card ever been declined? Come on, tell us. What was the reason? Did you forget to pay your credit card bill? Did you max out your credit card? Let me know, and talk to you next time!
- your card has been declined
- pay your credit card bill
- max out your credit card
- spending limit
- pay off your balance (pay in full)
- minimum payment
- credit card statement
Áudio do presidente Barack Obama vem deste vídeo: