Something that is worrisome in the country is the way in which Colombians handle their credit cards. In 2018, the plastic that marked 15 million was issued, identifying that many people had more than one, and although this is not a crime or something negative, borrow from it, spend more than you have or divide everything into installments, It does become a problem.
The world of credit cards can be very seductive and the key to mastering and using them to your advantage is to have the right information. So, what is the step by step to get the plastic that suits you and handle it correctly? If you want to know, you’ve arrived at the right place!
Be sure to understand what they are
First, do you understand what a credit card is? It may sound mocking, but the truth is that many people associate their card with extra money; they usually see it as a salary increase when it has nothing to do with it. Having a plastic does not mean you have more money or freeway to spend more. Simply, that you can acquire certain goods and services without the need to pay immediately for them; that is, they “lend” the money.
Know the payments you must make
Not only will you pay for what you buy, but, in case you defer the expense to several installments, you will also have to pay interest and these will depend on the rate granted by the bank or the financial entity with which you are looking for the card.
Now, these are not the only costs associated with plastic. There are insurances that are charged monthly, as well as the handling fee, but in some cases, the latter can be waived. For example, they ask you to have a minimum amount of consumption every month, and if you meet, you can exonerate some of these payments. Another additional payment has to do with cash advances. In most cases, commissions are charged upon completion, depending on the cashier or means by which it is made.
Look for a card with additional benefits
Did you know that when you buy a plastic, the financial institution offers you different benefits? So is. They can be miles, discounts in establishments, return of purchases, access to VIP soles in airports, among others. Ideally, choose those that you can really enjoy, depending on your profile. This makes having a credit card twice as convenient.
Do not marry any option
The worst decision is to choose the first. Do not marry a bank if you have not reviewed before what are the proposals of other entities, as you could miss something interesting or that suits you more. Rather than being guided by advertisements, look for real opinions from people and use web tools that give you the information you need, such as Princess Jane’s credit card comparator. By using this type of tools, you will be able to know what the interest rate offered by each bank is, what benefits, what additional charges, among others, and everything in an orderly manner to be clear about each of the points.
Don’t be afraid to ask and ask again
When in doubt, do not make any decisions. Remember that it is the duty of the financial advisor to answer all your questions, until there are no more doubts and you are calm with the decision you will make. Do not forget, information is the best weapon for financial success.
Should you withdraw cash?
Seeing your card as a source of cash is not something that suits you. It is normal for financial institutions to have a higher interest rate for these cases and to charge additional fees, which means that the money you withdraw ends up costing you much more expensive than you think. If you need cash, it is more convenient for a consumer loan, such as a free investment one.
Financial experts recommend that you do not use your plastic for this purpose, unless it is an emergency, and still, seek to return it in the shortest possible time.
Aim to be a total
Being a totalero means paying your consumption in a single installment. What is the immediate consequence of this? That he will not pay interest and, in addition, he will learn to differentiate when to use his card and when not, as well as when to stop, since he will not be able to afford the expense at the end of the month. Being a totalero is something very well valued by banks and earns points for your credit history.
That does not mean that you cannot use installment financing at any time. The fees are recommended when the expense is very large and can destabilize your budget. In that case, financing for a maximum of three or six months will help.