Credit cards are a blessing to many and a curse to others, the difference is how much you know them.
It is already December around the corner and with it, the expenses of the parties. The banks do not waste this month to offer you “attractive” credits, which if you do not know how to use them in your favor, could leave you in debt up to your neck.
However, unfortunately the credit cards do not come with an instruction, so I share these 12 basic concepts that you should know to get the most out of your card and avoid borrowing:
Several banks offer you the option of not charging you an annuity, if you make a minimum purchase per month. So if you domicile water or electricity, you will avoid that cost.
It depends on the bank and the card. You can rely on the page of CONDUSEF and its credit comparator, in this way you will have a larger picture and you can decide better.
Pass all your debts to a single bank
There is the possibility that, when you have several credits in different banks, a single bank buys your debt and gives you a preferential interest rate. “This makes it easier to control your credit cards, but still, the best option is always not to borrow.”
The minimum payment only prevents you from paying the penalty fee for not paying on time and allows the bank to continue lending you, but you will still be charged interest on the amount you have not paid from your monthly payment, so By only paying the minimum, your debt will increase month by month. Please pay more than the minimum.
Most of the credits are part of your credit history which is recorded in the Credit Bureau, so it is important to keep up with your payments. The Bureau does not approve or reject credits, it simply records your behavior.
Months without interest
Cards usually offer promotions to months without interests in several establishments, find out which ones you can take advantage of.
Most of the cards give you points for using them, that you can exchange them for products that they have on their page (ranging from dryers to flights) or there are some that even offer you to exchange them for shopping bonuses.
In general the cards have insurance, whether they expressly tell you and sell it to you, or it is included in the contract. “Find out, many of them are free and can get you out of trouble, like life insurance.
“It is always necessary to have the security of how to replenish our money in case of theft. Most of the cards give you security, because if they steal you can easily report them and they will refund your money (in some soon, others take time to pay).
One of the advantages of our times is that now banks offer you electronic banking (some for free). This makes it easy for you to track your credit card and to pay from there without the need to make long lines at the bank.
Make the payment to not generate interest
The payment you must procure is the payment to not generate interest, that is, the total amount, this will allow you to keep up to date and only pay for what you have bought, “so you will not be giving away your money to the bank and you will prevent your debt from increasing. ”Those who make this type of payment, as we have already seen, are known as totaleros.
Importance of the cut-off date
The cut-off date is the one used by the bank to close a credit cycle, so that it will accumulate what you bought from one cut-off date to the next. From that date it will give you approximately 10 to 15 days to pay what you bought in that cycle, that is called the payment deadline. If you buy just after the cut-off date, you will have to make that payment within 45 days. “The best thing about the credit card is that it really is a financing, but we must never forget, that it is borrowed money, not extra.”
Remember, it is important to have a good credit card management so that this is your best tool and not a headache.