The credit card is one of the most popular inventions of recent times; promoting at least two key benefits: A great help to consumers as a payment mechanism and, in turn, is a great boost to our economy.
Tips for the best use of the Credit Card
But, credit cards have also been exploited incorrectly, becoming, several times, the main source of debt for many consumers. Therefore, to take advantage of the true benefits of credit cards, consumers would have to be well informed about the proper use of credit cards.
1. Pay the pending installments on your date
Not meeting the outstanding installments will only cause the debt to increase immeasurably, since credit card interest rates are considered among the highest compared to other types of debt.
2. Transfer balances from a high-interest credit card to other lower-interest credit cards
If the interest on the credit card is too high, you should switch to other credit cards that offer even 0% introductory interest. In this way, credit card debt can be paid off gradually without incurring additional interest.
3. Cancel high-interest credit cards
After a while, you should evaluate the interest rate of each credit card you have and cancel those that charge too much interest, even if they offer us an excellent rewards program, because in the end, the rewards obtained will not compare with the additional interest incurred.
4. Be careful with the credit limit
Since the credit limit can usually be 2 or 3 times our monthly income, it can be very easy to spend too much. Thus, one must be very careful not to charge the account more than what can actually be paid.
5. Check your payment statements
Contrary to what one believes, banks and credit companies can make mistakes with their payment statements. Therefore, it is better to have the habit of checking the expenses that one has made with your credit card before making the payment.
6. Make automatic payments
For example, if you are used to making purchases in certain stores, you can ask the bank to make an automatic payment, thus making sure you always pay on time. Then, you must check the payment statements and claim if you find any discrepancies.
7. If you are going to browse windows, do not take your credit card
Do you make impulse purchases? If one already knows that in front of the windows one suffers a frenzy to buy, it is advisable not to carry the credit cards. In any case, carrying cash is a good method to avoid impulse purchases.
8. Be aware of your rights
Consumers have rights. For example, if you have purchased something that turns out to be defective, you have the right to demand a refund or make a complaint to the competent state authority.
9. Do not carry several credit cards
Credit cards offer us many conveniences, but many have gotten into debt on all their credit cards, for the simple fact of carrying them in their wallets. Therefore, the trick is to carry only the credit card that is needed and, if possible, cancel the rest of the cards. In this way, you avoid spending more than you can actually afford.
10. Protect yourself from identity theft
Protecting your personal information and avoiding the theft or cloning of your credit card is everyone’s responsibility. So, for example, when making purchases online, make sure the counterparty is legitimate before providing any credit card information.
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