The use of credit cards is very common due to the ease of obtaining them, they allow the purchase of products and services that can be paid later as stipulated in the contract. In this sense, they are a financial support tool but in many cases it seems the opposite.
The key lies in managing the card properly, you also have to find out about everything that involves using it, in this way you will have an optimal experience and you will not generate a large debt. For this reason, here we tell you five basic facts that you should know about these plastics to take care of your money.
Do not abuse the promotions. Photo: Reforma
1. You have to read the contract carefully
This is substantial, you have to know your obligations and rights as a cardholder. This means that you should ask about additional benefits, for example insurance in a crucial situation. Some cards only have coverage for theft, loss or cloning, for this reason you have to advise yourself on this aspect.
2. Know the costs of your card
In the country, all institutions that provide credits are required to inform their clients about the Total Annual Cost (CAT), which refers to commissions, interest and other additional charges for using your credit card. For this reason, you have to carefully review the fees that you will have to cover and compare with others to choose the most convenient one.
3. Use it according to your budget
It is very important that you are aware that the payments really are within your budget. You have to define an amount of what you can cover without damaging your personal finances. For example, you can organize what percentage you will allocate to your personal expenses, family even to your business, in this way you will not invest in superfluous things and you will avoid debts.
4. Pay in full on the date indicated
It is essential to pay off your total monthly balance, this is a smart way to use your credit card, however in Mexico it has been observed that only a small percentage of cardholders do so.
In this way, you will define and organize the budget that you must allocate to the payment of your card and you will also avoid charging interest. Also if you are constant you will have a good credit history.
5. If you don’t use your card you must cancel it
It is advisable not to have more than two cards, you can keep one for regular payments and another with enough resources for an emergency. However, there is no point in keeping one that you do not use, because it does not generate any benefit, on the contrary, you will only be covering its annuity.
Finally, it is best not to overdo the promotions offered by some commercial establishments such as interest-free months, as this can compromise your ability to pay.
For you to continue being informed about this and other related topics, we suggest you visit our Credits section.