Example 1
(A “Qassit” Credit Card holder has a limit of SR 4,000):
If at the start of the month the customer spends a value amount of SR 1,800 from his credit limit, then at the beginning of the billing cycle (every 30th of the month), the system calculates the installment as follows:
10% of 1,800 is equal to SR 180. Therefore, the minimum due amount is SR 300 because it is greater than 180. In this case, he still owes SR 2,500.
After he pays the minimum due amount (SR 300 in this case), his credit limit for the following month will be: (4,000 - 1,800 + 300 -) = SR 2,500 (any paid amount will be refunded to the card’s account).
If in the next month the customer spends the value amount of SR 2,000 from his card’s credit limit, then at the start of the billing cycle (every 30th of the month), the system calculates the installment as follows:
10% of the total due amount (1,500 + 2,000 = SR 3,500) = SR 350. So, the minimum limit due is SR 350 because it is greater than SR 300 and so on…
Example 2:
(A “Qassit” Credit Card holder has a limit of SR 4,000):
If at the start of the month the customer spends a value amount of SR 3,500 from his credit limit, then at the beginning of the billing cycle (every 30th of the month), the system calculates the installment as follows:
10% of 3,500 is equal to SR 350. Therefore, the minimum due amount is SR 350 because it is greater than SR 300. In this case, he still owes SR 3,150.
After he pays the minimum due amount (SR 350 in this case), his credit limit for the following month will be:
(4000 – 3500 + 350) = SR 850 (any paid amount will be refunded to the card’s account) and so on…