Credit card, friend or foe?

2023-07-24 20:09:34

Paying with a Credit Card (TDC) has become a common practice in daily life, since it simplifies the way of making purchases and if you know how to use it correctly, it offers great benefits.

Despite this, many people consider this financial product as a generator of eternal debt, and it certainly is, if it is not used properly.

That is why the National Commission for the Protection and Defense of Users of Financial Services (Condusef) announces some benefits that are obtained by using TDC properly.

1. Payment flexibility.

A credit card is a financial product that helps finance purchases for up to 50 days, however, it is important to remember that it is not an extension of your income and that all purchases you make will have to be paid within the stipulated time.

In addition, some financial institutions have agreements with businesses to offer their customers purchases at Months Without Interest (MSI).

In general, establishments with this promotion divide the total payment in terms that go from 3 to 24 months or more.

2. Credit building.

Although it may sound counterintuitive, paying with a credit card can also help build a strong credit history. “If you use your TDC responsibly and pay for your purchases on time, your credit history will be impeccable. This can help you obtain other types of loans, new credit cards and more financial services in the future,” said the Condusef.

3. Protection in your purchases.

One of the biggest advantages of using the TDC is the purchase protection offered by various financial institutions, this provides reimbursements for theft or accidental damage of a covered purchase that must be paid in full.

Also, some credit cards offer extended warranties on products, which means that if the product breaks after the manufacturer’s warranty, the credit card may cover it.

4. Accumulation of rewards.

Another benefit of paying with a credit card is the accumulation of rewards. Many cards offer programs that allow you to earn points or miles for what you spend. These rewards can be redeemed for travel, gift cards, store discounts, cash back, among other benefits.

5. Insurance in your TDC.

There are many cardholders who are unaware that, associated with their TDC, various insurances are included that offer important benefits and whose costs are included in the annuity, or through periodic charges.

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