Proper use of credit cards is a wonderful aid for management of personal finances. If you pay timely your total debt, you will be able to receive low-cost financing. Through the proper use of credit cards you are in a good position to deal with emergency expenses such as hospitalizations, unexpected trips, urgent car repair, etc. Likewise, you can have access to cash, 24 hours a day via ATMs. Another of the benefits associated with having a credit card is that they’re often linked to various types of insurance, which apply in different situations such as life insurance and travel accidents, among others.
Here are a few tips for the proper use of your credit cards:
- Remember that a credit card is not an extension of your salary. It’s simply a loan, and without the necessary care it might turn too expensive.
- Try to keep a proper management of the costs incurred with the card and store the receipts for the purchases you’ve made with your credit cards. This will allow you to keep a better vision of your expenses and check on your financial status. Furthermore, being organized allows you to spot any improper charge on your credit cards.
- We recommend that you schedule the payment of your credit card, to meet deadlines and avoid paying penalty interest.
- It is advisable to pay at least the double of monthly payment, in order to significantly reduce your debt and avoid paying excessive interests.
- It is recommended to use the card from the day after the last day of the billing cycle, and during the first days following this date, to extend the financing period between purchase and due date.
- Remember that if you pay off the total amount of purchases during the period, you will not pay interest.
- We suggest you to check your statements regularly in order to verify if the amounts shown in it correspond to consumptions made with the credit card. Otherwise, you will have 90 calendar days to appeal to the bank and file a claim.
- A single credit card will provide better control over your expenses.
- Never sign a blank voucher or proof of purchase. Data has to be totally filled out before signing.
- Don’t carry your credit card with you if you haven’t thought of using it in advance.
- For your safety, keep your PIN secret. Beware of fraudsters watching you at the ATM to steal your card and PIN. And never forget to remove the proof of transaction from the ATM.