The Importance and Benefits of Credit Cards in Colombia: A Closer Look at Usage and Advantages

Bogota — In Colombia there are more than 16 million current credit cards, according to figures from the Financial Superintendency. Which demonstrates the importance of this plastic in the consumer’s daily life.

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In addition to that, taking into account statistics from the Bank of the West, the population group that uses these cards the most is between 30 and 60 years old and 42% of these users are women, while the remaining 58% of users are men.

One of the benefits that became fashionable in 2020 and that financial institutions have been offering since then is the exemption of the handling fee on credit cards. In this regard, Alfredo Barragán, an expert in finance and banking, told Bloomberg Línea that the main advantage of this product is that “you save the money that would be paid for this concept, “which can be significant if multiplied by the number of months or years you have had the card.”

Likewise, he pointed out that a good financial reputation is maintained, since banks normally offer this benefit to clients who make frequent and responsible use of the card, that is, who pay on time, do not exceed the available quota and comply with the conditions of the contract.

“Thirdly, the benefits and rewards that the card offers are preserved, such as cash back, miles, points, discounts, among others, which can be very useful to obtain additional products or services,” the expert emphasized.

And he added that in addition to these advantages, credit cards without a handling fee allow you to record everything you buy, which makes it easier to keep track of expenses and do a financial analysis. “They also help build a credit history, which can open the doors to other financial products such as loans or mortgages. To which is added that Credit cards are accepted in many countries and digital platforms, which makes them very practical for traveling or shopping online.”

Along these lines, Julio César Ortiz, manager of payment methods and alliances at the Bank of the West, indicated that four points must be taken into account when requesting a plastic of this type.

1. Benefits and rewards: Research should be done on the rewards programs, discounts and benefits that the card can offer.

Some cards provide multiple benefits such as cash back, airline miles, redeemable points and other incentives that may be valuable depending on your preferences and lifestyle.

2. Responsible use: Remember that a credit card is a financial tool that must be used responsibly, paying balances on time and maintaining careful control of expenses to avoid the accumulation of debt.

You should always be clear about your financial and lifestyle goals.

3. Availability in case of emergency: In the market there are different credit flexibilities that benefit the multiple economic interests of people.

Analyzing balances, times and additional benefits can add extra value to the use of the card. Unnecessary debts must be avoided.

4. Collection of interest: It is important that you validate with your bank whether your credit card without a handling fee generates interest on purchases, even if they are deferred to a single installment.

Knowing this information will help you make your expense accounts.