The credit cards are very practical and useful financial instruments, but are also complex to understand and administer. In our previous post we review the main features of the Credit cards : What are ?, how ?, what kind of paid use them ?; however, were many open questions about their daily use. This time we will review some tips for using our credit cards and be more responsible consumers.
Pay your card promptly
It may seem obvious, but many people forget payday or have trouble paying your credit card on the scheduled date. Card debt that is not paid on time brings in the next month plus penalty interest accumulated for each day of delay (this interest is usually higher than normal interest rate used for purchases on the card itself). In addition to, a serious backlog of payments problem is that such occurrences are usually reported to credit bureaus and credit profile affect user behavior, preventing future access to loans or credits from other institutions.
So what to do? Payment dates mark your card on your calendar (preferably on your PC). If you have problems with the court date, you better change it and you line the day of the month that normally receive your salary or wages. Another good option is to schedule an automatic debit to your savings account (or salary) so you do not have to worry about making payment in an office.
Do not use your card to withdraw cash
The availability of cash is seen by many as an easy money that can be drawn at any time. The problem is that the interest you are charged for cash withdrawals are generally very high and end up being a difficult financial burden of paying. Besides credit cards charge a fee each time advancement is making a withdrawal.
Taking money out of the card can get you out of emergencies. If this is your case, you pay the full amount of this retreat as soon as possible.
Remember, a loan staff is a lot more convenient and cheaper option for cash; also allows you to pay for several months according to your means.
Check your balance with your consumption vouchers
Banks and credit companies can make mistakes in the charges which effect further cloning fraud and credit card are the order of the day. When you receive your statement, check each charge presented and check it against the vouchers you get every time you make a purchase.
Remember: Do not throw your credit card vouchers because they are proof that will help you check that you are not charged anything wrong.
If you have additional cards (for your wife, children, etc.) separates a while to find them statements. Monitors that do not have significant charges, especially if repeated constantly; if so, you may be a victim of cloning. Check with your bank to understand how to protect yourself in these cases.
Pay more than the minimum
If you can not pay the full amount of your credit card, at least get always paid more than the minimum payment, since the minimum payment assumes the cancellation of debt in a very long time (usually 36 months) and every month should pay interest on the balance of your debt. If you pay more than the minimum, you will be paying interest, but also canceling part of the capital you borrowed and after that you should unless the following month and pay less interest.
An effective way to do this is always paid at least 2 times the minimum value ... Plan your payments!
Do not spend more than your credit limit
Credit cards have a limit which is the amount of money you can spend each month. The problem passing this limit is that there is a penalty to pay is significant; in some cases this penalty is paid whenever the limit exceeded by days or exceeded.
Instead, you should obviously not be exceeded; however, be the case and you know you're going to exceed this month, you can call your bank and ask for an extension of your credit line even temporarily.
Credit cards have a limit which is the amount of money you can spend each month. The problem passing this limit is that there is a penalty to pay is significant; in some cases this penalty is paid whenever the limit exceeded by days or exceeded.
Instead, you should obviously not be exceeded; however, be the case and you know you're going to exceed this month, you can call your bank and ask for an extension of your credit line even temporarily.
Know your credit card: comprising the terms and conditions
Contracts and terms of credit cards are very complex and difficult to understand documents, but it is very important that you take time to understand the features of your card. If you have difficulty to understand, ask an executive of a bank that will explain the main points. Here are some facts you should consider:
• What is the interest rate to be applied for purchases in revolving, fees, cash withdrawal?
• What is the credit limit granted?
• What are the costs associated with your card: freight, maintenance, annual renewal, etc.?
• What penalties are applied by default, available cash, excess credit line, etc.?
• What is the billing day (closing) and what is the payday?
• What forms have to pay your card: automatic debit, agencies, internet, transfers from another bank?
Contracts and terms of credit cards are very complex and difficult to understand documents, but it is very important that you take time to understand the features of your card. If you have difficulty to understand, ask an executive of a bank that will explain the main points. Here are some facts you should consider:
• What is the interest rate to be applied for purchases in revolving, fees, cash withdrawal?
• What is the credit limit granted?
• What are the costs associated with your card: freight, maintenance, annual renewal, etc.?
• What penalties are applied by default, available cash, excess credit line, etc.?
• What is the billing day (closing) and what is the payday?
• What forms have to pay your card: automatic debit, agencies, internet, transfers from another bank?
Compare between multiple cards and choose the best for you
There are hundreds of credit cards on the market and each has different characteristics. It is important to understand what are the main features you look for in your credit card and you can compare the different options. The interest rate (TIA) is perhaps the most important when choosing a credit card parameter and can greatly benefit from shifting a credit card to another lower TIA.
There is even a form of Debt Transfer, which allows, you can transfer the debt from one credit card to another and by an even lower rate that will be used for your purchases. This way you will be saving a lot of money in interest and getting the best possible benefit.
There are hundreds of credit cards on the market and each has different characteristics. It is important to understand what are the main features you look for in your credit card and you can compare the different options. The interest rate (TIA) is perhaps the most important when choosing a credit card parameter and can greatly benefit from shifting a credit card to another lower TIA.
There is even a form of Debt Transfer, which allows, you can transfer the debt from one credit card to another and by an even lower rate that will be used for your purchases. This way you will be saving a lot of money in interest and getting the best possible benefit.
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