2023-06-08 02:19:22
There is no nothing to fear when it comes to credit cards. On the contrary, they can save us and they save us when we don’t have cash available or by hand. Yes indeed, need to be used responsibly and aware, maximizing your benefits and avoiding unnecessary debts.
To achieve this we leave you 10 tips, which can be 10 commandments for your financial life, when it comes to credit cards. Take note!
1- Establish a budget: Before making purchases, it is necessary set a monthly budget and make sure you can cover expenses with regular income. This helps to avoid excessive spending and to have control over personal or family finances (usually automatic debit is used on credit cards, for monthly payment in schools, clubs, insurance).
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2- Pay the full balance: Golden Rule. Try to pay off your balance in full each month to avoid paying additional interest and fees. If it is not possible to repay the total debt, it is essential to pay more than the minimum and pay when you have cash in order to reduce the debt as quickly as possible (it is essential to prevent the amount from continuing to grow and then become unpayable, having to take out a loan and borrow more to pay off the card).
3- Use it when necessary: Use the card to Major and necessary expenses, such as emergencies or large purchases that cannot be paid for in cash. Avoid it for impulse or unnecessary purchases (do not use it to take advantage of the famous discount fairs on clothes, appliances, which are not necessary).
4- Know the terms and conditions: Read and understand the card and issuer terms and conditions, including interest rate, fees and credit limits. This helps to make informed decisions and avoid unpleasant surprises (for example, you have to pay a percentage per year for the use of the card, find out how much it is).
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5- Keep a record of expenses: Keep a record of the expenses made with the card helps to maintain control over finances and avoid spending more than you can (it is essential to keep this record, to reach the end of the month without surprises).
6- Take advantage of the benefits: Many credit cards offer additional benefits, such as rewards programs, discounts, or insurance. Make sure you know about and take advantage of these benefits, but don’t get carried away by spending more than you need to. (Many entities have clubs and rewards for their clients for the use of cards; in the case of cooperatives, distribution of surpluses).
7- Protect all personal information: Keep your credit card and account details safe, always. Do not share your information with unknown people and keep your passwords and access PINs in a safe place (special attention to online purchases, verify the pages and addresses before making the transactions).
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8- Review the account statement regularly: Review the account statement monthly to ensure that all charges are correct. If an error or discrepancy is found, contact the credit card issuer immediately (they usually debit twice, not debit, there are several failures that can occur).
9- Avoid withdrawing cash: Cash withdrawal with a credit card is usually subject to additional fees and interest. Try to avoid it and use the credit card mainly for purchases in establishments (currently there are many options and the charges and interest are lower, likewise, contrast with the urgency or needs).
10- Do not exceed credit limit: Golden Rule. Avoid exceeding the credit limit established on the card. Doing so can generate additional charges and negatively affect credit history (basic for a harmonious financial life with your card).
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#Nación #commandments #credit #cards