There are many writings and videos that have been written about handling credit cards. However, users continue to demand guidance on how to correctly handle these “facilities” that banks give their customers.
For Federico Castillo, an expert in personal financepeople have a confusion with the subject credit card because, in his opinion, people see it as an extension of their salary, “which is not the case”.
“It’s a behavioral issue. understand what a short-term loan is that the bank does to you, that you have to return it in approximately 30 days and after your consumption is cut, they give you approximately 21 or 22 days to pay”, he explained.
Castle indicated to Free Journal, what is recommended pay the total amount consumed and that the total credit limit is never consumed.
“If you have a credit limit of 15 pesos, don’t take it to the top, always have a replay amount, because as you consume your credit cardthe limit or the total, so you can increase the risk of not paying“, he pointed.
Castillo suggested that people should know that they have other financial commitments that needs to be addressed, so it is not advisable to put at risk the ability to pay.
“Do not withdraw cash unless you have an emergency, because they charge you considerable commissions. Even though credit card financing or annual fees are standardized, it’s still a bit high when it comes to a personal loan,” he said.
Understands that people should try to not have more than one card and, at most two, but that it is necessary to identify what can really be paid with these.
“You can set a credit limit with the bank so that you know how far your ability to repay that money that the bank is lending you, that it is making available to you based on your credit behavior”, expressed Federico Castillo, business consultant.
He recognized that it is a good financial instrument that helps you build credit historybut that must be established for what “I want it”.
According to the Superintendency of Banks, a credit card It is a payment instrument issued by authorized financial intermediation entities, which allows the holder to cover the amounts of the transactions carried out through the means available in the payment system, and which will be financed by the issuing entity of the card, prior contractual agreement between the holder and the issuer.
According to data from the Superintendency of Banks, as of December 2021, the number of cardholders in the country stands at 1,079,429; the amount of credit cards (excluding the extensions or additional plastics that derive from the credit card of a holder) reach 1,738,131.
In addition, the amount of plastics (including the extensions or additional plastics that are derived from the credit card of a holder) are located at 2,350,069.
The Dominican Association of Multiple Banks (ABA) from time to time publishes information on its portal to guide users of banking entities.
In an article by Liliany Martínez, from the ABA Communications Department, it is argued that Advantages of using credit cards It may depend on the good management given by the user. Emphasize that it is important to note that should be consumed responsibly, budget your expenses and be careful.
Explain what should be prudent in consumption, always taking into account what is your ability to pay. In addition, it is advisable to organize how many expenses to be made with the credit can amount to and which ones are really necessary, in order to avoid excesses.
The Superintendency of Banks indicates that the personal credit card portfolio registered a balance of 57,656 million pesos, presenting a year-on-year growth of 7.4%, equivalent to 3,975 million pesos.
Additionally, it specifies that there was an increase in the interest rate on credit cards in national currency of 0.4 percentage point with respect to its level of the previous year, going from 56.7% in December 2020 to 57.1% in December 2021.
In the study of the Dominican Association of Multiple Banks entitled “LCredit cards and their role in the economy It is explained that its use has multiple benefits for its users, among which we can mention:
1) It is an easy and timely means of payment that reduces cash needs
2) serves to create credit history
3) Facilitates better financial planning at home
4) Give benefits through your loyalty programs
5) cost and time savings when making payments or purchases through the internet
6) for companies it means secure payment by their customers
The study suggests that access to electronic means of payment such as credit and debit cards contributes to raising the levels of banking in a country, in the sense that more people will be able to enter the formal financial system.
In this sense, the economic literature has shown that there is a link between access to financial services and poverty reduction.
