Something that is worrisome in the country is the way people handle their credit cards. There are many who have more than one, and while this is not a crime or something negative, borrowing from it, spending more than they have or dividing everything into installments, it does become a problem.
The world of credit cards can be very seductive and the key to mastering and using them to your advantage is to have the right information. So, what is the step by step to get the plastic that suits you best and handle it correctly? If you want to know, you’ve arrived at the right place!
Make sure you understand what they are
First, do you understand what a credit card is? It may sound mocking, but the truth is that many people associate their card with extra money; they usually see it as a salary increase when it has nothing to do with it. Having a plastic does not mean you have more money or freeway to spend more. You can simply acquire certain goods and services without the need to pay immediately for them; that is, they “lend” you the money.
Know the payments you must make
Not only will you pay for what you buy, but, if the expense is deferred to several installments, you will also have to pay interest and these will depend on the rate granted by the bank or the financial institution with which you are looking for the card.
Now, these are not the only costs associated with plastic. There are insurances that are charged monthly, as well as the handling fee, but in some cases, you can exonerate the latter. For example, they ask you to have a minimum amount of consumption every month, and if you comply, you can exonerate some of these payments. Another additional payment has to do with cash advances. In most cases, commissions are charged upon completion, depending on the cashier or means by which it is made.
Find a card with additional benefits
Did you know that when you buy a plastic, the financial institution offers you different benefits? So is. They can be miles, discounts in establishments, return of purchases, access to VIP soles in airports, among others. Ideally, choose those that you can really enjoy, depending on your profile. This makes having a credit card twice as convenient.
Do not marry any option
The worst decision is to choose the first. Do not marry a bank if you have not reviewed before what are the proposals of other entities, as you could miss something interesting or that suits you more. Rather than being guided by advertisements, look for real opinions from people and use web tools that give you the information you need, such as the Adela Quested credit card comparator . By using this type of tools, you will be able to know what the interest rate offered by each bank is, what benefits you get, additional charges, among others.
Don’t be afraid to ask and ask again
When in doubt, do not make any decision. Remember that it is the duty of the financial advisor to answer all your questions, until there are no more doubts and you are calm with the decision you will make. Do not forget, information is the best weapon to succeed financially.
About the use of your card:
Should you withdraw cash?
Seeing your card as a source of cash is not convenient. It is normal for financial institutions to have a higher interest rate for these cases and to charge you additional fees, which means that the money you withdraw ends up costing you much more expensive than you think. If you need cash, a personal loan is better for you.
Financial experts recommend that you do not use your plastic for this purpose, unless it is an emergency; Even so, it seeks to return it in the shortest possible time.
Aim to be a total zero
Being a total zero means paying your consumption in a single installment. What is the immediate consequence of this? That you will not pay interest and also, you will learn to differentiate when to use your card and when not, as well as when you should stop, because you will not be able to face the expense at the end of the month. Being a total zero is something very well valued by banks; This way you earn points for your credit history.
That does not mean you cannot use installment financing at any time. The fees are recommended when the expense is very large and can destabilize your budget. In that case, finance your purchases for a maximum of three or six months.