ESP

10 Tips on Credit Cards

1 | When choosing a credit card, it is convenient to consider, among other things, compensatory interest rate that issuers charge, charges for its use, and whether it is for domestic or international use, as well.

2 | Among the costs related to product use, the following should be considered: life insurance over financed balance, overhead expenses (issuing of account statement), credit card renewal fees and fees charged for cash withdrawal, in addition to VAT over compensatory interests.

3 | Given it is a credit product, there is a purchase limit (that can temporarily vary if requested), a cash withdrawal limit and an installment financing limit. These limits depend on the credit policy of each bank and on the credit qualification assigned to each customer.

4 | Other aspects to consider are compensatory interest rate for purchase financing, punitive interest rate for not making the minimum payment that the account statement shows, the minimum payment amount and the fees charged for exceeding the purchase limit (assessed according to income level). Moreover, it is significant to know which the requirements for holding a credit card are (income level, maximum age).

5 | It is advisable not to hold several credit cards and spend little money with each one, if not particularly benefitted, given you will then be surprised at having to face fixed charges for little use.

6 | When using you card, you should have in mind your payment capacity for the coming installments.

7 | It is advisable to know what the credit card promotions are as they can make a difference in your expenses. For example, holding a card that offers you discounts to fill up your car with gas is not the same as holding one that offers discounts in first-class restaurants. In short, check which credit card is the most adequate to your consumer needs.

8 | You should not allow anyone to take your card away from your sight to make the transaction. It is also advisable to keep record of your purchase tickets to compare them with your account statement.

9 | It is advisable to memorize your personal identification password, as keeping it in writing is not a good idea. In addition, choose a password difficult to guess by possible thieves.

10 | You should avoid making just the minimum payment as summing balances generates higher interests in the future.