Tips to use your credit cards wisely
Published 12/20/2021
In this article, we want to share some information about credits cards for you to consider. Credit cards are not bad, if you do not abuse them. Take into account that credits are double-edged financial tools. Your credit cards allow you to make large purchases, take a family vacation, and do online shopping more easily. At the same time, using credit cards without a clear plan to manage debt can lead to serious financial difficulties.
If you want to be prosperous and financially stable, you need to use credit cards properly. Indeed, if you understand how to do it better, credit cards can help you to improve your financial life.
Consider the following tips for using your credit cards
Know the benefits
Some people do not know this information, but most cards have different benefits and rewards programs. The important thing is to choose the one with the benefits you want to enjoy. Some credit cards, for instance, have discounts in different stores. Others, instead, offer you advantages related to how you can pay or points for the purchases you make. We invite you to take time to search for information in your bank to know more about your credit card's benefits.
Organize your expenses
The first recommendation is that you have a regular budget. In this budget, you should analyze your income and your expenses. You should include the costs of your credit card. Take into account that this plastic money should represent help and not an unnecessary expense. Some tools help make this control easier to carry. You must define your priorities. If you want to know more about it, you can read our article How to put tour financial priorities in order.
Consider relevant dates
You must know the important dates for your credit card. There are two dates you must keep in mind, the cut-off date and the payment deadline. Let's know these two important concepts. The cut-off date is the day on which the bank counts the charges you generated during a specific period, usually a month. Your account statement will arrive a few days after this date. It tells you how much you owe to the bank and lists the expenses and payments you made during the month. On the other hand, remember that the payment deadline is the most important on your credit card. This date is the deadline you will have to pay the balance you consumed in the previous month. The bank will begin to charge you interest for each day you do not pay your debt from the payment deadline date.
Check your bank statement
Every month, you should receive your credit card statement from your bank. The expenses must correspond to the purchases you made. If you have atypical charges, report immediately to the customer service lines that the various banking institutions have and keep the 'vouchers' or proof of payment for any clarification. Sometimes if we do not check our statements, we do not realize mistakes.
Punctual payments
When you receive your credit card statement, the most important is verifying the deadline for your payment date. You must not exceed this date. If you pay on time, you will avoid additional expenses for interest and delays. To facilitate payment on time, consider setting a reminder in your bank application to set aside a fixed amount and automatically pay the card before the expiration date. Still, you must make sure that these payments include minimum monthly payments to avoid interest.
Do not loan your card to anyone
It could seem obvious, but many people forget about this rule. You cannot lend your card to your son, not your husband, not your friend. You will be responsible for those debts, and you will have to pay them even if they do not pay you.
Forget about cash dispositions
Many users think it is the same to withdraw money from a credit card as from a debit card. They ignore that they will have to pay a commission per disposition. Then they will pay daily interest at a rate that is regularly even higher than the average card rate. Banks consider clients who are willing to obtain the money even with these financial costs can be riskier. We recommend avoiding this situation.
With so many potential problems, it can be challenging to remember some advantages of using a credit card. On the other hand, it is also vital to remember the downsides because this way, you can protect your finances. We hope that you can put into practice this advice to improve your financial life.
At El Paisa Multiservices we want to help you with your financial movements. You can contact us if you have questions about our services.
By Ingenuity & Solutions
