Ask for a card – how, when, where?
When you are dealing with credit cards, there are several different information that you need to know.
It is important to understand all the advantages and disadvantages when dealing with your finances and budgets related to your salary and income. Just remember that your finances is one of the most sensitive and important areas of your life.
In finance, the ideal is to get the most out of it in every way.
As a good card user, I take full advantage of all the benefits they can give me, use them so well, that I do not see myself in any moment if I make use of one or more cards that I possess.
Are Credit Cards Bad?
As I said, in one of the paragraphs above, many people believe that credit cards are bad and that no one in their right mind should use them.
In general, anyone who has or has problems with debt or over-indebtedness usually has the foot behind with the use of card, whatever it is. But even if you do not like credit cards , I think having a good financial education, there are no problems.
Not all citizens who are indebted are due to the uncontrolled use of this type of credit, and it is worth mentioning that it is possible to:
- Make Money With Cards
- Get money back
- Get special bonuses
- Use Expense Benefits
- Make travels for free
- Have exclusive discounts and many other benefits using credit cards
In this article we will explore the different advantages of credit cards and some of the different ways you can use them.
We will try to answer some questions that are hovering in the air, we will also give some tips on the wonderful world of the most used plastic in the world – the cards.
I know people are different, think differently, and live in an exclusive way, that means that not everyone needs a credit card , but this type of person is a minority.
Are credit cards good?
If you read the first paragraph of this post, you know my honest opinion about having credit cards. Far from being bad, credit cards can be a great asset, either to organize savings, to create credit or to gather rewards.
But, we can not fool ourselves, there are times that actually ask for credit card , have it approved and use it can be very damaging to your finances, your salary, savings and your life.
Read all to know the good, bad and ugly side of credit cards.
What is the best way to use credit cards?
1. Build credit history: Making small purchases with cards and paying them on time, without delays, is a great way to establish credit history and score.
Without credit score or without having credit history, it can be difficult to get personal loans such as:
- Banking personal loan
- Student Loan Home and Vehicle Financing
- Financing with mortgages or home equity
- Getting some types of jobs
* If you are able to secure a personal loan without consultation , the interest rate may be higher than in banking modalities.
Having a good credit history can help you save thousands of dollars on virtually all types of loans that exist.
For example, when you apply for a home equity loan, the difference between a candidate with good credit score and a flawless credit history versus a nominee with a bad name, a bad name, or a poor credit history can be in the thousands of dollars in the outstanding balance.
Keeping a credit card and making invoice payments on time, is one of the easiest ways you can build credit history.
2. Source of cash resources and credit for eventual emergence: I mean use for a real emergency. Having a real emergency fund is always important – why? Not everyone has $ 1000 in cash to buy urgent airline tickets, do the car repair, deal with a sudden accident, etc.
And, in my opinion, paying 12% interest is much better than paying for a loan with loan sharks, or making a loan at Crefisa. Some personal loans for negatives can apply interest close to 2500% if contracted for a year (12 months).
As we mentioned, having your cash emergency fund in a savings account is a much better idea, but if you do not have that availability, having a credit card can be one of the best ways to pay unexpected bills and expenses.
Your credit card can meet the need for money your family needs.
One more important detail, the cards have fraud protection for wrong debit purchases, but the cardholder must notify the financial institution of the card as soon as possible.
4. Undue or disputed charges : When you open a dispute regarding a charge on your credit card, most credit card companies take the charge off the invoice until the dispute is resolved.
With this, the money charged can be repaid without much difficulty, especially with bad faith companies using inappropriate means or making misleading offers.
5. Card Rewards: Many credit cards offer rewards including: (cash back) cash back , air miles (smiles), discounts on stores and trade, discounts on products and services, and many others.
Most of these rewards and special benefits are created to get people interested in using the cards or spending more than they could spend, but if used wisely and correctly reward points can generate a lot of money saved.
Some credit cards offer a bonus or exemption at the annual rate, are known as non-annuity cards, this benefit can generate hundreds of dollars saved over a year.
6. Convenience and practicality: Do not like carrying amounts of money in the wallet? A Visa Credit Card or Mastercard is the solution! If you lose, if the card is stolen, just block and ask for cancellation.
Credit cards are small, convenient, convenient and have the best consumer protection available.
They are also effective in making purchases of products, paying for online services or financing the purchase of large items in reais, dollars or any other local currency.
Another convenience of the card is in travel. Depending on the type and category of your card, you do not even need to buy or exchange coins (local money). Some credit cards offer special rates for foreign currency transactions.
7. Rental and Car Rental: Some car rental agencies do not allow you to rent a vehicle if you do not have a credit card to place as collateral for payment.
Even rental companies and agencies can afford to lease a car with a debit card but they can hold a substantial amount of money out of their credit limit until they return the car on the agreed date.
In this situation, you will not be able to use these account features during the time you are leasing the vehicle. It is worth mentioning that there are credit cards that provide additional liability insurance when you rent a car in addition to the travel insurance.
8. Extended Warranties: Many credit card companies provide extended warranties on items and products that you purchase in the trade. There are cases where the manufacturer’s warranties are doubled.
This benefit can be a great resource!
9. Short-term loan: Credit cards generally have a grace period with zero interest cost until payment due from the monthly invoice. This loan with interest zero arrive 6/7 weeks, which allows you to buy now and pay only in 45 days.
For purchases of expressive amounts, pay installments is a form of interest-free financing. As time goes by, you can make money by investing or by saving the amount that would be spent if it were paid for.
10. Financial Control Tools: Most credit card companies and administrators provide detailed transaction records that can be easily downloaded to free finance control tools for account and expense management.
This makes home budget control much easier to track down and create a plan. (I.e.
The Bad Side of Credit Cards
1. Temptation to Buy and Spend: With a credit card, it is much easier to fall into the trap of spending compulsively, ie more than you can afford. It does not matter if you do not have money in the bank, one step on the little machine, and the card will buy whatever you want.
Never forget, card purchases need to be paid every month to the lender.
Credit cards certainly mess with your finances, they will increase or decrease based on the liability with which the carrier manages their expenses.
Not to lose your way, making a budget and maintaining self-control are key to reap the benefits that credit cards provide, otherwise the consequences are disastrous.
2. Owning a lot of credit cards: These days, credit cards are becoming easier to obtain, with the advancement of credit fintechs, digital accounts and cards without consultation, anyone, even with restriction, can get credit at any time. time.
The more credit cards a person owns, the more he is likely to incur more debt, and over time will be unable to repay the amounts owed, meaning he will default.
To avoid being one with more problems with credit cards, avoid requesting more than 2 or 3 cards. Avoid especially soliciting card from stores that usually have extremely high interest rates.
3. Damage to credit and history: If you abuse your credit card, spend beyond your resources and fail to make payments on time, it will certainly destroy your reputation, credit score and your name will be denied at Serasa / SCP / Good view.
Remember that your score and high or low credit score is determined by your ability to make responsible payments on multiple lines of credit over time.
Any account you fail to pay is detrimental to your score. Spend wisely! Use your card to help you and not to harm you!
4. Interest Rate, Fees and Fines: Again, liability is essential for anyone who wants to carry a card in their pocket. If you constantly make late payment payments or sink into debt after debts with the card, this will create a growing debt accumulation.
The tip is to automate payments and always spend within your budget. These are excellent ways to ensure you pay the bill without delay on the due date.
If you are trying to get out of your credit card debt because you can not settle the balance, or because the interest rates are too high, consider making a loan to consolidate the debt with cheaper interest.
Credit card invoices must be payable every month
To take full advantage of the benefits listed above and avoid the ills caused by misuse of the cards, the cardholder must pay the full balance of the invoices in full each month.
Reminder : “When used correctly, credit cards can be a very useful tool for someone’s life.”
However, when they are not used properly, the cards can be very bad! True destroyers of finance and reputation.
Now .. if you do not believe that the cards have so many benefits to convince you to use them, as the credit cards, try the debit cards , they are great for carrying out cash transactions with cash payment.
The 10 reasons to ask for credit card listed above are beneficial for anyone who wants to acquire them and use correctly, and of course, do not leave invoice balance behind.
Ideally, you should use credit cards to make everyday purchases and pay the bill in full each month when your due date arrives. In my opinion using credit cards is not a problem, it is a solution, not using it would make me lose money.
Everyone can benefit from having a credit card, but you should use it responsibly.
Cat leap is responsible use. If you know you can not handle it, then do not and do not ask for one.
I know sailing in the financial waters is not easy, but that’s why we’re here, it’s to help.
To conclude, know that there are dozens and dozens of types of credit cards on the market, which means that there is one that will work very well for you.