Using the credit card is not complicated. Learn how to use it better by following these simple recommendations.
A credit card is a very popular and useful financial instrument today. A bank or some other financial institution provides you with a line of credit for a defined amount.
It should be very clear to us that this money is not extra money and we should not mistakenly think that it is ours. It is a loan and therefore it is a debt that we must pay. The bank lends us that money that we can pay in a certain period of time without surcharges but once the payment date arrives and we have not covered our debt, we are charged an additional interest and this is where the problems begin. So to avoid unnecessary problems keep these recommendations in mind:
1. Know your account status
Many people have a bad habit of receiving a statement, looking it upside down, and throwing it away. Big mistake! Your account statement gives you a lot of information that helps you better organize your purchases, your budget and avoid paying unnecessary surcharges. Check especially and write down in your agenda data such as: cut-off date, payment deadline (it is a very important date because if you go over you will pay a surcharge) and the minimum payment ( which is the amount you must pay at least to avoid surcharges) . You should also take care not to have delays and review the description of operations, as it may happen that you detect expenses that you have not made. And above all, don’t throw away your account statements! because this can happen to you: Identity theft: a crime very close to you.
2. Do not reach the limit of your card
When personal studies are carried out to grant you a credit or a loan, it is reviewed how much control you have over your finances, the punctuality of your payments and therefore your responsibility to properly manage the amount of money that has been granted to you. Don’t spend just for the sake of being able to.
3. Learn about promotions, points for purchases or other benefits
Banks often run promotions in which they give you a series of points or percentages for each purchase that you can use on other purchases. Take advantage of them! Sometimes it takes you time to sign up for these services and promotions, spend a few minutes and sign up, you will have benefits along with credit.
4. Keep track of each of your cards
If you are one of the people who has more than one card, be very careful to keep your records in order. You can use one and the other alternately to keep them active and avoid canceling your credits due to disuse. And never, never, make the mistake of saturating all of them.
You can also read: If you have problems with money, these are the details that you should start solving.
5. Don’t pay the minimum
Many believe that paying strictly the minimum your credit will be healthy, but this can also be misleading, because the debt grows over time and without realizing it you will be paying interest that you do not want. Try to pay a little more than the minimum always, that will reduce your debt and in the long run the payment time.
When you have a credit card, the ideal is that if you buy something, you pay it in full two days before the payment deadline, it’s that simple. Use it, buy it, plan your payments and pay off your debt as soon as possible. Your credit will be healthy and in the event of an emergency or a good opportunity that you cannot miss, you will be prepared to get ahead.
I invite you to read: Take care of daily expenses and reduce them to save.
And finally, remember that “credit was invented to cover our little willpower and not be able to save”. What do you think of this?