There are people who have ‘crossed’ the credit card because they think it only leads to debt and has no benefits that justify its use. The truth is that if you know how to use it with responsibility and control, it can be your best financial alliance, Well, if one is well informed, one can ‘take advantage’ of its benefits.
Forward, the financial experts at BBVA Peru They give you the following tips:
THE FINANCIAL LIFE. There is no better way to start your financial life than with a credit card, this way you will get on the radar of banks and savings banks, and with responsible use over time you will be able to build a great credit history.
ACCESS TO OFFERS. A credit card gives you access to different offers and discounts on different products and services, depending on your bank. They even offer a series of rewards, such as miles for travel or points that you can then redeem for cash.
INTERNATIONAL USE. They can be used in several countries without any problem, break any monetary barrier and be very useful when you travel for work or on holidays.
If you buy in one installment (direct) with your card, you won’t pay interest. If you need to split the amount, choose the smallest possible installments to reduce interest.
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Credit Cards: 5 mistakes when using this payment method
Improper use of the credit card can generate a ball of debt that will greatly affect our personal finances.
Currently, young people and adults are using the Credit cards as a means of financing; however, this can be a bad experience if not handled properly. In this sense, it is essential that new and old users are informed about this product, in a way that does not affect their personal finance.
A credit card allows its user to make purchases and pay for services, accepting the obligation to repay the amount drawn down plus interest and Bank charges at a specified time. Therefore, if you are a new user of a credit card and do not know how to use it properlyBanco Ripley lists the 5 most common mistakes you should avoid.
All or nothing
Credit card statements have two amounts: the minimum payment and the full payment; However, many users find it a relief to pay the minimum amount, when that only makes the debt continue to grow. That is, with this amount no penalty will be charged for non-payment, but the interest will be charged on the credit to be financed.
The billing date and the payment date are not the same
Users need to know the difference between the two dates to have better control over their card. The billing date is the day the statement of account is issued, in which all purchases made in 30 days are considered, and the the deadline is the payment date pay the amount corresponding to the credit card debt so that a late penalty is not paid.
Make frequent cash withdrawals
There is a disposal of money a loan obtained from credit card line, and it consists of withdrawing money from it with an interest rate that varies according to the profile of each card. It is recommended to use this loan only in emergency situations, since the interest generated is usually high.
Do not use the Digital Channels
Whether through the Mobile Banking App or Internet Banking, it is recommended to use these channels which will allow you to monitor the movements made with the credit card in real time. In addition, this way, you can keep better control of monthly expenses and make these payments without having to leave home.
Don’t use Loyalty Programs
Loyalty programs allow you to earn points as purchases are made with the Credit cards. Upon completion of a certain amount, these points can be exchanged as if they were cash for various products, experiences, among others.
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