There are many advantages that a credit card gives you but, like every tool, you have to know how to use a credit card to make the most of it and not fall into its negative points, which has them, many and also dangerous for your financial health .
Credit cards are one of the financial tools for your day by day more interesting
Today I will explain a series of tricks and skills to avoid the disadvantages of credit cards. So read carefully and implement these tips to avoid financial problems and improve your home economy thanks to credit cards.
Tricks to improve the use of credit cards
Here are 4 tricks that will come in handy to know how to use a credit card in a proper way.
This is a tip that applies to any financial product or document that you have to sign that is important. How many dislikes would you save if you read the fine print, right?
The fine print indicates very important conditions and aspects of credit cards . Conditions and aspects that you should know to not take unpleasant surprises.
From the real interest rate of the card, and not the one that is advertised that is often not the same, up to certain commissions or conditions in the form of payment.
If there is something that you do not understand or are not the conditions that they told you at first, comment on it and do not hire that credit card until you have everything very clear.
You cannot have doubts when you are talking about your money.
Check your accounts
I know it’s a bit boring but you have to keep track of your expenses and your accounts with some periodicity . A good frequency is once a month.
In this way you know what you have spent during the last month, if you have spent too much or on the contrary you have achieved extra savings. You will also avoid falling into overdrafts, if your account has little money, you have a control of the commissions that can be charged to you and thus contact your bank as soon as possible or realize as soon as possible of possible fraud, such as expenses incurred by the use of your credit card that you have not done yourself.
Talk to your bank
Related to fraud prevention, do not be afraid to talk to your bank if you see in the extract of your card some strange expense, an invoice that does not fit you or a commission that you do not understand.
Ask why these expenses are due to avoid fraud or “mistakes” of the bank , which can sometimes try to “sneak” a commission as you are not attentive. Or increase the interest rate applied to the card without notifying you properly.
Be careful with the special offers
Many credit cards use special offers or significant discounts for a period of time as a hook to increase your hiring. Or better conditions such as a lower interest rate or the elimination of certain commissions.
Other times credit cards are linked to the contracting of other financial products, such as certain types of insurance. It is these associated products that have high costs and therefore you must flee from them.
The danger of using these credit cards is that after that time they hide hidden fees and expenses that make them very expensive and harmful to your pocket.
Always pay at the end of the month
Whenever you can pay all expenses and purchases you have made using your credit card at the end of the month. This way you will avoid paying the interest rates that the cards apply to the purchases you pay on time.
It is tempting to pay something in installments and be able to make more purchases and expenses than you can do with your normal monthly income. But this is living in a lie. You are living a debt-based lifestyle that is not something healthy.
However, this is not easy. One thing is to tell you that you should not pay your purchases in installments and another is to put it into practice.
It is even quite possible that you are aware that this is the right thing, that you know the evils that excessive debt can bring into your life but social pressure, the desire to buy or enjoy something can more than your precautions.
So, after seeing the above tips, I am going to tell you some more focused tricks to prevent you from getting into debt using a credit card.
Rules to avoid borrowing with a credit card
There are 2 very simple tips and tricks that you will see below. Some even fall within common sense but it is worth remembering them, and you already know that many times common sense is the most elusive of the senses.
Choose first what you are going to buy
Do not go shopping without knowing what you want . This is very similar to shopping at the supermarket without a shopping list. In the end you always spend more than you should.
Go shopping and use a credit card, without knowing well what you are looking to buy is to open the doors wide to debts.
Don’t buy anything you can’t pay in cash
A trick is to take cash money shopping even if you know you are going to pay with your credit card. Why pay with the card then? Because you can go to account due to the discounts or programs that many credit cards have associated.
But setting the limit of not paying more than what you carry in cash will help you control the expense .
Keep in mind that even if you are careful and put into practice the advice I have told you, it is proven that if you pay by credit card, the cost is greater than if you make your purchases with cash . And it is that one of the great advantages of credit cards that is how simple and easy it is to pay with them is, at the same time, one of its main disadvantages.
In Prince Hal we have a complete section with all the information of the main credit cards of the market. Do not forget to check it out if you are looking for a credit card to find the one that best suits your spending habits.
Finally, always be aware that using a credit card is not a constant and free source of money. Using them has a cost but also important advantages and you have to study when it is convenient to make a payment with the card or not.