We are in the summer season where thousands of people will take advantage of their free time to make their purchases, however, in a complex economic panorama where economic needs arise that imply availability or generation of money, it is essential to know how to properly use the credit card so as not to get into debt and harm the financial administration of the home.
A credit card is a payment instrument that can have physical support, electronic or digital representation and that is associated with a line of credit, this product is granted by companies in the financial system (Banks and Savings Banks), consumers with that card they can make payments for goods or services or obligations they may have.
“In the case of Banco de Comercio, the credit card is available with an interest rate of 26.00%, for the benefit of the profitability of the users we recommend using the card whenever necessary in those purchases that can be canceled in a timely manner, in summer seasons there are many situations that drive consumption, you have to know when to use this financial product”, refers Mario Cifuentes, Head of the Risk Division of Banco de Comercio.
Here are five tips to correctly use the credit card and not generate debt in the budget:
1.- Includes the type of payment agreement established. We recommend that you inform yourself in detail, always reviewing your account statement and understand what types of payment agreements you have with your card, for example, how interest will work and how commissions will be charged. Also, recognize expiration dates so you can organize ahead of time.
2. Learn to choose and differentiate between full payment and minimum payment. Always check the type of payments detailed on your statement. Also, keep in mind that the total payment is the total amount that the customer must pay at the close of their billing cycle, it represents the total debt, as opposed to the minimum payment, which is the minimum amount that the customer must pay in order not to incur in arrears, that is, it implies a fraction of the debt. Remember that the minimum payment is an option that seeks to provide you with a contribution to your debt, in those situations in which it is not possible for you to make the full payment for the month, you keep up to date with your debts, but do not cover all your debt, just you cover a certain percentage. On the other hand, if you buy with a credit card, it is better to make full payments.
3.- Plan your consumption and payments. If you know how to plan the consumption and payments of your cards, you will have good financial health. Pay an amount greater than what your minimum payment says, so you will pay part of the principal and less interest for the following month. Also, do not be late with your payment dates so that you do not have arrears or pay commissions affecting your credit record, remember that a good record of a good payer allows you greater opportunities to access other sources of financing. It is a good habit to collect your consumption vouchers and receipts, in this way you verify your consumption.
4. Try not to make purchases in installments. Avoid making purchases in installments, since without realizing it, the interest you will pay will mean that you buy more than you should, try to cultivate spending habits that are realistic to your budget and financial capacity. If you schedule your consumption in installments, it is suggested to request it at the time of purchase.
5. Do not accumulate several credit cards at once. Do not assume financial obligations beyond your reach, knowing your priorities and spending margin will be key so that you do not get into debt, avoid the vicious circle of withdrawing money to pay other cards. Keep in mind that immediate funds of money with different due dates and payment schedules can cause delays and missed payments. Prioritize a maximum of two cards, in this way you will avoid increasing your level of indebtedness, which affects the credit rating for future loans that you may need.
The criteria and the opportune use of the credit card in summer seasons can help you with your consumption, however, it is important that you control your expenses during activities with family, friends or co-workers to avoid neglecting control of your finances .
- Finally, for those users interested in opening their credit card, Banco de Comercio makes available its service channels and network of Agencies nationwide. Find the closest one in the following link.
