The t They are a financing tool, but their use demands great responsibility.
They are a practical solution to make payments, for an unforeseen situation and, even, to indulge yourself from time to time; But there are consumers who often make mistakes that can cause them inconvenience, due to the effect they cause on their economy.
To avoid uncertainties and headaches, we must avoid certain errors, of which we highlight the six that seem most important to us:
- Two cards; no more: Having two cards from different franchises makes sense, because if one does not work, the other gives you the solution. But having a card collection encourages shopping clutter and budget oversight and increases expenses.
- Neglect payment: Timely payment of all debt is healthy to maintain a good credit history. It is advisable to cover the amount of the debt as soon as possible.
- Cash advances: The credit card allows consumers to make purchases as an alternative to the regular payment date of each one, but it is a recommended solution to use in cases of real emergency.
- Exceeding limits: The more you owe, the lower the rating you receive and the more risk the financial institution perceives, the higher the interest rate it charges. The consequences are worse if you use the additional margin that some entities allow. Ideally, you should not exceed 30 percent of the card's credit line.
- Make minimum payments: When you pay the minimum amount of the installment, the debt balance grows month by month and if you consume the purchased product in less time than expected, you will be paying for something you no longer have. If you pay amounts greater than the established installments, you reduce interest collection and get out of debt faster.
- Ignore the details: It is possible that among those details you will be informed that the interest rates depend on the use that is being given to the credit or that the rates are subject to change. It is important to know the cut-off date, not to exceed the payment date and, keep in mind that, if you pay in dollars, the amount may vary according to the exchange rate of the day.
These are just some of the mistakes that a cardholder can make, but in no way does it mean that he cannot use them, everything with measure and care can be done.