5 Credit Card Care You Need To Have
Beside overdraft, the card is one of the most used sources of credit by Brazilians. The detail is that, as practical as its application is seductive, credit card is the main source of debt for the average citizen. And the problem is further compounded by the high interest rates involved!
To help you not fall into this trap and avoid headaches, it is good to have some credit card care. Check out what they are and protect yourself!
1. Be careful with your information.
In general, the initial credit card password is randomly chosen by the banner itself. Try to remember it and avoid repeating this code for access to other services – such as email. You can also periodically request a password change from your service provider, increasing your security.
Also be careful with the card number, expiration date and security code. Remember: This information should only be provided to trusted retailers, whether they are in the traditional market or online.
2. Make purchases on schedule
Ideally, your credit card limit never exceeds 50% of your income, you know that? Even so, you still need to use good criteria to avoid getting out of line. For starters, avoid making recurring purchases (such as grocery shopping) using the card. No paying for electricity or water bills with him either, okay?
Understand: Ideally, a credit card should only be used to purchase items that need to be paid in installments or to subscribe to recurring billing services – such as Netflix or Spotify. Because these charges are fixed, your financial control In the medium and long term it is not committed.
3. Avoid paying the minimum or parceling the invoice
In every invoice, there is the possibility to pay only the minimum amount. And the temptation can be great especially in those months when money is shorter. The problem is that the minimum charge is too expensive, since the unpaid amount is added interest, Financial Transaction Tax (IOF) and late fees, needing to be paid in the following months.
Other than that, just paying the minimum is a bad idea, splitting the bill is not a good choice either. After all, the revolving interest, IOF and fines come into play once again. In extreme cases, you may consider another line of credit with lower charges, such as a personal loan, to pay off your entire card account. This output can be laborious and bureaucratic, but the cost savings are usually worth it, see?
4. Renegotiate your debt quickly
Credit card care is essential to avoiding the famous (and dreaded) snowball effect when a small debt grows exponentially until it becomes priceless. Do you think it’s too late because you’ve already gone into the red? None of it. Seek the creditor financial institution as soon as possible to renegotiate your debt!
At that time, ask for discounts and choose a payment plan that is really payable, according to your current conditions. The key is to avoid turning one debt into another. Once the debt is negotiated, adjust your finances to pay off the outstanding installments, getting rid of the debt and relying on credit in the square again!
5. Have as few cards as possible
Credit cards are currently offered by banks, brands, retail stores and even supermarkets. In reality though, you definitely don’t need all of them! Walking with wallet stuffed with plastic money, in addition to the risk of falling into Financial out of control, you still need to deal with the fees on each card – like annuity.
Therefore, the recommendation is that you have as few credit cards as possible, using only the alternatives offered by stores or supermarkets if the advantages are extremely relevant in the long run – which is not usually the case.
Finally, now that you’re more alert, how about telling your friends and family about credit card care? For that, just share our post on your social networks!