Sometimes, when we do not put our credit card to good use and we fall into indebtedness for the same reason, we find ourselves in need to stop using it, or worse, to cancel it.
After this period you are finally out of debt and learned your lesson. Now you realize that the credit card can be a good credit tool for your purchases as long as you give it a responsible use.
These are the benefits they offer you
However, in this second stage of your “interaction” with credit cards, you know that you should be more responsible, not only in its use but also carefully choosing the one that suits your needs and offers you the services you expect.
If you are looking for a credit card with great benefits, continue reading, since in this article I will tell you about credit cards with the greatest benefits in the market.
Before starting with the best options in terms of credit cards, I think it is pertinent to orient you about their good use. Whether you’ve had a good experience using your card, or not, I’m going to give you some tips on how to maintain good credit behavior when using your card.
How to give responsible use to your credit card
1. Your card is not part of your income. The first rule is to be aware that the credit card is not an extension of your income, therefore, you should not use it to pay your monthly expenses. The only way it may be advisable to pay for your services with a credit card is by directing them. However, you must also reserve what is spent by this means and pay it before the payment deadline. Use your credit card in your favor!
2. Pay more than the minimum. In your statement, you will find two options regarding the amounts you can pay before the due date: the minimum payment and the payment for not generating interest (in which you pay the total amount committed for the expenses made during the month). On the one hand, if for some reason (out of your control), you cannot deposit more than the minimum payment, do so.
Keep in mind that the interests of the purchases of the month will accumulate for your next payment, however, complying with this payment is very important in order to keep good credit history in the Credit Bureau. However, it is best to pay the total amount of your purchases for the month, or at least an amount greater than the minimum payment, the important thing is that you meet your payments.
3. Know your closing and expiration date. Part of giving your credit card responsible use is learning to use the bank statement. Pay on the stipulated dates and keep good credit history.
4. Know the characteristics of your card. I remind you of the importance of choosing the ideal credit card for you, and not the one that has been pre-authorized. Some of the factors you should consider are:
- The interest rate you will pay in case you cannot pay 100% of your purchases on the payment commitment date.
- The moratorium interest rate, the percentage of interest in case of paying after the payment deadline.
- The Total Annual Cost (CAT), this includes the total payment of all the elements to the year of use of your card.
- The annuity: Make sure you choose a card that doesn’t charge you one.
- Charges for balance inquiry, transfers, cash provision, etc.
5. Do not abuse purchases for months without interest. One of the benefits of credit cards is that they help you when you don’t have enough liquidity to buy something you need. The same goes for promotions selling products for months without interest offered by companies to buy any of their products or services.
The problem begins when you make unnecessary purchases with this modality and leave your credit card to the top, then it becomes impossible to pay the sum of all those purchases, which can be summarized as: purchases without interest months were paying more interest.
6. Analyze your finances before having more than one card. If for any reason you need a second credit card, I recommend that before requesting or accepting it (if you have it pre-authorized) analyze the use you are giving to the first and review what is the purpose of having a second card and, mainly, if this will have an impact on the health of your finances.
7. I remind you that financial scams are becoming more common. For no reason share your card information via telephone. If you plan to shop online, always make sure that the URL site starts with https: // which will mean it is a safe place to shop.
Advantages of having a credit card
- Thanks to credit cards it is not necessary to charge with cash to make your purchases or pay for any service.
- The use of your credit card gives you access to different promotions in department stores or online. Payment to months without interest and discounts are some of these promotions.
- Credit cards help you save time you would invest by paying for some services in stores or banks. Direct debit is one of the best services offered by credit cards.
- The cards can be used in some unexpected matters. We do not know when we are going to have an emergency, which is why credit cards represent a benefit in these cases.
- You can make payments abroad, and in the best case, some of the credit cards offer insurance against accident or illness and lost luggage.
These are the benefits that credit cards offer you
Now, let’s go straight to the best options regarding the selection of your credit card. I remind you that there is no perfect credit card for everyone, this will depend on the needs of each user. Then, I will tell you about the most important factors regarding the benefits of credit cards in general, identity what are the essential characteristics for you.