Credit cards allow us to buy things that we could not access by paying cash. The fact of being able to pay in installments , at a later date , or even be benefited with prizes and discounts , can give the feeling of not spending.
But be careful, because that concept of things can lead to serious financial problems .
When accessing a credit card , it is imperative that you be clear that you cannot spend more than you can afford .
Now, if you analyzed the situation and are committed to responsible consumption , we will give you some tricks so you can choose the card that best suits your needs .
How to choose a credit card?
Before saying yes to an offer, you should evaluate the following items one by one:
Pay attention to the compensatory interest rate charged by banks , the charges associated with their use, and if the card to be issued is for national and international use.
In addition, it is important that you inform yourself about the interests that could be applied to your purchases and keep in mind that, in all cases, you will have to pay the amount invoiced before the due date in order not to fall on the famous “minimum payment” , the deadly trap for your pocket.
Points, discounts and promotions
Pay attention to prizes and rewards. Do not be dazzled and analyze the true use you will give to these benefits .
Analyze well the terms of the rewards offered in terms of percentage of refunds , or travel miles programs for example. Stop to think if they will really be useful for you. A promotion may be excellent, but you will never use it.
The main committees are the maintenance, although many cards charge fees for certain services, how to make cash advances from an ATM or make purchases abroad.
National and international quota
At this point your purchase goals will come into play . The quota that suits you will depend on the purchase you need or want to make and how often. You may have a great acquisition in mind and need a large quota or, conversely, settle for a small quota for specific expenses .
Another important point here lies in the origin of the purchase , that is, whether it is national or international .
The national quota (in pesos) works separately from the international quota (in dollars). If you make purchases abroad , physically or through foreign pages, the purchase will be charged to the international quota and after a period, this amount may be transferred to pesos, with the dollar price of the day stipulated by the bank.
In most cases these quotas can be extended , so it is important that you see this guideline in the contract, and that you review the fine print in terms of deadlines to request an increase in quota, requirements, etc.
Find out the fraud insurance options that the card delivers. No one is free to suffer crimes with financial instruments, and it is important to have coverage in these cases.
If you consider these points, choosing a credit card may be an easier decision. The important thing is that you do not make hasty and informed decisions in other realities. Yes you should consider personal factors such as your income , consumption habits and preferences .