Credit Cards are useful payment instruments, since they avoid the risks of carrying cash and also allow you to defer the corresponding disbursement. However, they can become a double-edged sword if used improperly. Find out these tips to use them wisely.
Avoid getting into debt
Ideally, you pay the entire balance of the Credit Card on the expiration date. Although many offer you the possibility of financing this amount in various installments, the interest they charge is high, much higher than mortgage loan rates, for example.
Pay on time
Whether you adopt the previous advice or decide to pay the amounts of the Credit Card in installments, comply with the respective payment dates; otherwise, you will be charged late fees and interest, also high.
Do not finance expenses
It is reasonable that you acquire a tangible asset, such as an electrical appliance, financing yourself with the Credit Card. But it is not smart to finance certain expenses, such as restaurant meals, because in this case your wealth decreases as your debts increase without increasing your assets. Think, for example, that if nobody applied for mortgage loans to pay unproductive expenses, they should not do it through the card either.
Take advantage of the cut-off date
If this is the 30th, for example, try to make your important purchases with the card on the 31st or the first of the following month, as this way you will have a free financing period (a whole month plus the additional days that you are granted to make the payment).
Do not fill up with cards
Although they offer them to you, it is not recommended to have more than two Credit Cards. Remember that even if you do not use them, you will still have to pay a series of maintenance costs. It is preferable that you increase the limit in which you have.
Save all the payment vouchers and keep track of what you spend with the cards, so that you avoid surprises when you receive the statement.
Avoid asking for cash
Withdrawing cash on account of the Credit Card may be necessary in case of emergency, but it is expensive if you do it frequently, since they charge a normally high commission.
In conclusion, handle your card wisely and keeping in mind that what you consume with it you will have to pay, even with interest.