Although many say that credit cards (TC) are a financial instrument synonymous with problems, the real problem is not knowing how to use it correctly or worse, using it to waste, letting your interests rise until ending the peace of mind of a healthy financial life. . But in reality, credit cards can be very useful and offer you great benefits when used wisely.
Some personal finance experts recommend minimizing the use of credit cards, but others would recommend using and managing them in such a way that they can be an instrument to have a credit record and a rating before financial institutions.
In this article you will find the necessary information so that you know the benefits that a card used correctly can offer. Thus, according to your context, economic situation and self-control in your personal finances, you will be able to decide what is most convenient for you.
The first thing to keep in mind to avoid making mistakes with credit cards is that the money you have in this financial product does not belong to you, that is, it is not extra money that you can spend without measuring yourself. It is a kind of immediate loan that you must then pay the bank with the corresponding interest.
Be aware of your financial situation
If you don’t have a credit card yet, think about whether you really need one, or better yet, whether it’s in your best interest right now. To find out, you can ask yourself these simple questions: Is it difficult for you to control your expenses? When you have a card in your hand, are you not limited in expenses? Don’t you resist offers even if you know you don’t have the money? If your answer is yes to these questions, it is most likely not a good time to buy a credit card. But if what you want is to acquire credit experience, it is advisable to avoid falling into the temptation of spending without control with actions such as leaving the credit card at home when you go shopping, for example, and using it only and exclusively in specific situations or of emergency.
Buy products that can generate profit
It is useless to buy something on sale if you do not need it and go into debt to acquire it. That is why it is important that you buy items that can generate some return on investment, that are really useful or that you need. All this while taking advantage of the promotions linked to the issuing bank of your credit card, since by doing so you can get products below their price or receive some type of cashback (return of a percentage of the money you used to buy).
For example: if you take advantage of dates such as Bonus 14 or Black Friday in which your card gives you an additional percentage discount for purchases in certain stores and your bank also promises to return 5% of your payments that day, you will still save further. This is buying products that generate profit.
Choose your credit card correctly
To really take advantage of the credit card, you must previously be informed of the administrative costs, interest rates, additional expenses and if you must pay insurance or handling fees in the different banks and thus choose the one that best suits your needs. finance. In addition, you should inquire about the benefits they offer you for obtaining it or making purchases, for example: accumulating miles, points, receiving cashback, insurance such as mechanical assistance, discounts at your favorite stores or frequent consumption stores, etc.
pay on time
You must be aware of the payment date of your card to avoid late payment interest. One trick to achieve this is to write down in your budget the dates in which you must pay. Reviewing the account statement every month is the ideal way to keep track of your expenses and make sure that you are being charged correctly.
Buy at a fee
How not to pay interest with TC? Simple, pay in a single installment and in cash payment. Thus, in addition to taking advantage of all the benefits it offers, you will not have to pay interest to the bank. Remember that whenever you pay more than one installment, you will bear interest.
Avoid cash withdrawals
Unless it’s an emergency, avoid it. This action can generate charges in addition to interest, ranging from commissions, one-time withdrawal fees, or even a percentage of the amount of money withdrawn.
Source: Marco Maldonado, Strategic Business and Entrepreneurship Consultant, Director of Business Development. ceo@marcomaldonadocoach.com telephone 5312-6670.
2023-07-07 14:19:40
#Bonus #credit #card #wisely
