Having a credit card is as common as having a mobile. However, putting it to good use is something that not everyone seems to take into account, and many times they end up suffering from debts that they cannot pay.
Don’t let this happen to you! If you cleared your debts or build up a credit score then follow these tips and make the most of your credit card without suffering in the process.
Evaluate yourself before applying for your credit card
If you still do not have a credit card and you are thinking of taking one out, the first thing you should do is think about how you will use it. How much money do you need in your line of credit? How much can you spend? Can you pay that expense every month?
Unfortunately, many people think that plastic money is money that they can dispose of without measure. However, great is the surprise when your Account Statement arrives and they realize that the debt to be paid is significant. On the other hand, if you already have a credit card, don’t be tempted to accumulate several of them because you could end up getting into debt without wanting to.
Try to make direct payments
Paying in installments is tempting because one believes that one “does not feel it when it is paid progressively” but, have you ever thought about how profitable this is?
Remember that, the more installments in the payment of your purchase, the more interest you will pay. So it is recommended that, in most cases, you use the credit card for “direct” payments without fees, that is, you pay in full every month. There is no problem in using the credit card for small expenses, as long as you keep adequate control of the expenses and pay the total at the end of the month
Take advantage of the benefits of your credit card
Many people receive their credit card first and do not carefully review all the attached information that comes with it. You will be surprised to know that most credit cards have many benefits for you, such as discounts to access products or services in different affiliated establishments, the accumulation of points to exchange them for products and services, and even specific promotions for clients.
On the other hand, having a credit card is quite practical if you don’t like to carry a lot of money in your pocket. It is perfect for travelers because, in most cases, you can enable your credit card to use in different parts of the world.
Avoid using it as a replacement for cash
Given the current situation in the country, use cash only in very specific cases to avoid contact with other people. Remember that you have your credit and debit card for day-to-day payments.
For example, if you are going to purchase at the supermarket or buy something to eat, you could use your debit card. There are currently many applications that connect with our cards and you will not need to use cash.
Your card is not an extension of your salary
Don’t forget: If you’re spending almost 30% of your credit line every month, think about it for a moment. Professional would say that this is the first indication to recognize if you are exceeding your expenses. Because your line of credit is not an extension of your salary and at the end of the month you will have to pay what you spent, further reducing your income and forcing you to spend again by that means. This does not mean that using a credit card is bad, but that we must be prudent in its use to meet our payment obligations.
Don’t spend more than the “allowed” 30%
It is recommended that the monthly expense you make with your credit card does not exceed 30% of your salary and that this expense is not divided into installments. Set it as a monthly goal and you will see that it will be much easier to pay at the end of the month.
Now that you know all this, you will be able to better manage the plastic money that you carry in your pocket because credit cards are our allies and they can get you out of more than one trouble if you learn to use them well.
