Having a credit card, whether personal or business, translates into many benefits financially. Before applying for this instrument, you must know its advantages, interest rates and most importantly, the key to choosing the best credit card.
This tool allows you to access all types of consumption; you just have to load your purchases to the plastic and then commit to the bank to pay in monthly installments, with the interests established by law.
Credit cards undoubtedly make our lives easier, they not only serve to have cash and pay for our tastes or whims. They also help us cover more important expenses in relation to food or health and even services such as the internet and mobile telephony.
However, the advantages that a credit card gives you go beyond the benefit of paying for products or services. Owning this element will educate you financially and open doors to loans that help you achieve life or business goals.
Among the most important advantages of having a credit card are:
With the use of this outstanding instrument, you can build a credit history. In itself, you can have a record of your financial behavior, which will be kept in the Credit Bureau.
If you are a good customer and pay your debts on time, you will have a positive credit history. This will add a point in your favor since for banks you will be the perfect candidate for increasing credit limits or granting larger loans.
When you have a credit card, the bank sends you a statement every month. It details the number of expenses incurred, interest rates, fees payable, deadlines and collection for maintenance items if applicable, among others.
With this, you get more control over your expenses because you can know in detail what you are investing in your money. By having such data, you become more aware of how you are managing your finances, which will be useful to keep them in a solid-state.
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In today’s world where virtually everything is digitalized, managing our financial products through the internet is a necessity. This without counting on the benefit of the security and speed that the use of this modality offers us.
Nowadays you can make payments and other transactions by simply entering the website of your bank. Best of all, it is the possibility of doing it from the comfort of your home or work, without the obligation to go to a branch.
Do not choose any card offered by the bank. Ideally, look for a credit card with rewards or promotions, depending on your lifestyle and priorities.
What is the rewards method about? Credit card companies focus on incentivizing consumption by granting some kind of advantage to the customer; In this, the important thing will be to identify the most beneficial.
If for example, you use your vehicle little, it will not be helpful to opt for a card that provides fuel as a reward. On the contrary, if you travel frequently for business, you must select the one with advantages or discounts on tickets, hotels, and transportation.
This is perhaps one of the biggest benefits of a credit card since you can have immediate money without necessarily having it in your bank account. Sometimes we avoid spending due to lack of resources, but with a card, we can have funds without a problem.
When you want to buy you take out the plastic, you pay at the store and then you must cover the amount consumed in monthly installments, although sometimes with interest.
How to choose the best credit card? You have already read the benefits and advantages of this financial instrument, so now let’s see the keys to choosing the best credit card in the market.
Your income level will be decisive to choose a card according to your ability to pay and to identify the ideal one for you: classic, gold or platinum. This point is really important since it will dictate whether or not you can assume the monthly fees.
It is advisable to select a credit card whose consumption does not exceed 20 or 25% of your income. In this way you will not see your savings diminished, nor will you affect your fixed expenses for the month.
Another point to consider is your monthly expenses, commitments, and debts. Why is it relevant? Because knowing how much of your money is going, you can opt for a card with advantages according to your expenses.
For example, if you use it for your food expenses or services such as internet or telephony, you should be clear about the annuity, interests, and fees charged by the bank for these concepts.
Before granting you a credit card, the bank will check your credit history, that is, your behavior with financial products. If you have a positive record, the chances of getting the card will increase.
If, on the contrary, your history is negative, your possibilities will be closed and you can only use the option of requesting a guaranteed or insured card.
This instrument is backed by the money you have deposited in the bank, with the disadvantage of a limited or conditioned credit to your deposits. If your savings are low, your credit will be too.
As you can see, there are many benefits of having a credit card. We can summarize that the most relevant aspects to choose the best card will be your ability to pay and your credit history.
If you are in need of deferring the balance of your credit card, we invite you to know our service here. Through which you can finance your purchases and pay in the terms you choose, in comfortable installments.