2023-08-19 14:18:05
Bogota, Aug. 18 (COLPRENSA) –
– In the midst of the widespread belief that credit cards are synonymous with debts and financial problems, Cristian Arens, entrepreneur and investor with more than 10 years of experience in personal finance and founder of the “Invertir Joven” platform, offered his perspective to better understand their use.
Arens, who has a YouTube channel with more than 399,000 subscribers, said that credit cards can be powerful tools to generate abundance if used properly and fruitfully.
The cards are not only useful in unforeseen situations, but can also be used to effectively control expenses.
However, irresponsible use can lead to serious financial problems, a matter that many people are afraid of and prefer to avoid.
When using credit cards, it’s common to make mistakes that can have a significant impact on personal finances.
Some of the most frequent mistakes include making only the minimum payment on the debt, which can lead to deferrals at a high cost of the balance owed, as well as accumulating multiple credit cards.
Arens explained that withdrawing cash from the card can be interpreted by banks as a lack of liquidity and affect credit history; in addition to exceeding the credit limit, which is essential to avoid.
Among other errors is ignoring the cut-off and billing dates, ignoring when the debt is generated and when it must be cancelled.
Skip the interest rate and don’t consider canceling a card with unfavorable rates; and finally, taking on debt to invest, which can lead to problems if the debt cannot be covered.
Everyone has different needs and preferences, so there is no “best credit card.” Benefits include building a positive credit history, useful for future loans or mortgages.
In addition, many cards offer rewards such as points, miles to travel, cashback, and discounts with partner companies, which can be used if used properly.
Choosing an appropriate credit card is essential, adapting it to the needs and preferences. Its responsible use will make it possible to take advantage of the benefits and establish solid relationships with the bank for future projects.
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