The imposition of credit cards as a means of purchase is undeniable. From the online stores that are more every day, to the financial institutions that promote the use of plastic.
The credit card has many advantages and, that explain its massive use, but can also become our worst nightmare if we do not know how to use it.
Many times we underestimate the use of these almost “magical” plastics, but the truth is that there are many headaches that can cause us.
Let’s see what we can do so that does not happen and how can we avoid falling into fraud.
How to properly use the credit card
Some tips that can help us:
Go out with clear purchase goals
It is proven that, if we go out with a credit card in our wallet and, without knowing that we are going to buy, we will surely buy more than we owe. We also probably buy things we really don’t need.
Every once in a while we like to go for a walk in the shopping centers, but one thing is to walk and another is to enter as much business as we like. Prioritize the places that sell what you need and try to put aside those that sell expensive things that you don’t usually use. It is a temptation in which you can easily fall.
Define what your credit limits are
Generally, and after a certain time, the financial entity that issues your card extends the credit limit. Many times they do this without prior consultation, so that you spend more than you thought. Ask yourself if it really makes sense, for example, to have a limit of $ 3,000 if the maximum you can afford is 500.
Avoid very large quota plans
In many places, card purchases are financed in several installments and without interest. Something that costs you 600 and you can finance it in up to 6 installments, for example, it means 100 per month. This may seem like little to you, and then why not buy something else and have a treat? The problem is that then that small fee will join with others. There may come a time when you cannot pay your card total and resort to financing. If this happens, the interests are very high and it will be increasingly difficult for you to catch up.
Avoid paying the minimum monthly amount
When the statement arrives, we see two amounts: the total of that month’s card and the minimum acceptable payment. If you pay the minimum then the surcharges will be much higher than if you pay, even if it is a little more than the minimum. Everything is designed to continue using the card, but over time, if you pay the minimum amount the account will increase. And worst of all, that account will increase without having made purchases.
Think before awarding additional or extensions
Whether we have teenage children or another family member who cannot have a card, we have to be very careful with giving extensions. Never forget that we remain the real responsible for payment compliance.
As advice and, if we have to give an extension, is that it does not exceed more than half of the credit limit. If for some reason, the person to whom you gave an extension does not know how to handle or does not pay the card, you will have to respond to that situation.
Credit cards are very useful and can be of great help as we know how to use them. Let’s think that everything is designed to promote greater consumerism and, temptations are just around the corner. The solution is not to hide and refuse to use them, but to do so responsibly.