The credit card is useful when you do not have cash and you need to buy products or services, so that you can pay them in installments. It is common for card users to think that with it they can buy whatever they want and are convinced that they will pay for it when the payment arrives, only to then realize that the debt has increased and they have problems making the payment.
In order for the cards to be useful to us, they should not be used in order to soon end all the credit that is available. What should be bought with them are essential products or services and should never be taken as extra income. The reality is that you pay what you spend and a little more, for the interest that the bank charges us.
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If you want to use your credit card in an appropriate way and avoid generating problems when paying it, or with your credit history, we make these three recommendations:
1. Use it only when you make monthly payments without interest. and make sure it is in those conditions so that you do not pay extra interest. If it is about taking advantage of offers, make sure that you pay an amount that allows you to pay off your debt before the due date of your next payment.
In addition, buy with your card basic necessities that are durable, not disposable, it may be uncomfortable to continue paying for a good that you no longer use.
2. Don’t use your credit card as if it were a second or third income. To spend, take into account the amount you earn and do not exceed that limit, do not spend more than you earn, because if you do that you will have difficulty paying what you owe on time, and also the amount of your debt can become an ordeal for you endless, with the consequent record in your credit history.
3. Pay your credit card on time, and always make payments above the minimum. If possible, pay 30% of your debt every month, so that you avoid generating interest. So you can get out of your debts faster.
With these tips you can better manage your credit cards and avoid over-indebtedness. You will also have a good image in your credit history, which will serve as a reference when you need to obtain other credits for larger amounts.
If you decide to use your credit card to take advantage of the offers that are in some shops, it is a very good idea, as long as the products are of a high value and you can use them for more than 3 years, since that will be one of the terms at that you are going to pay for what you buy.
When you use your credit card to buy, try not to overdraw it or get into excess debt, so that you avoid having a bad credit history in the Bureau. If you use your card correctly it will be beneficial for you.
More information in our Credits Section.
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