Tips for using your Credit Card

If you don't have one, you probably know someone who has a credit card, right? The alternative in question of paying your bills is considered by many to be a great “salvation” of financial life, and by others, a great villain.

And it is up to us to say that the credit card can occupy both positions, it all depends on how you use it. The credit card, as we already know, has several interest rates added to the monthly amount of your bill, which can often weigh on your pocket.

In addition, the financial institution that we requested the card from may often have provided a limit value, higher than what we are able to pay, which can trigger disorderly consumption, which ends up generating many bills.

Therefore, if you have doubts about exactly how credit cards work, which are being so requested by everyone, and also, what is the best way to register them, we suggest that you continue reading this brief and explanatory article.

Credit Card: What's the Best Way to Use It

As we made clear at the beginning of this article, a credit card can be very advantageous, while at the same time it can cause major problems in your financial life.

How it will behave in your life totally depends on the way you use it.

So, so you can know the best way to record it, check out some very valid tips below:

1- Manage your expenses: most credit cards come with their own application, great for you to manage your expenses. However, if yours does not have one, it is essential that you write down all your expenses, so you will not be surprised by the invoice when it arrives.

2 – Set a maximum limit: although all credit cards already come with a limit, it's interesting that you establish your own, which is within your conditions, so you won't be wrapped up in short stories every month.

3 – Have few cards: it is very common to see people with several credit cards, however, this is not something favorable for their financial life. With multiple cards, you don't manage all your expenses very well, and the fees charged will always leave you at a loss.

How Exactly Do Credit Cards Work?

As we said earlier, the credit card is a payment alternative, in which the financial institution that makes it available, determines a maximum amount as a spending limit, which is renewed monthly.

The amount imposed by the financial institution depends on the monthly income presented in your application process, bills you must pay, score, among other things.

Often, because you have an income higher than what you actually have, an institution imposes a limit on you that you cannot afford, but even so, you spend it, which ends up leaving you in debt.

Therefore, it is always important to know exactly how credit cards work, such as the fees imposed on you, so you will know specifically what you will have to deal with each month.

The fees applied to a credit card vary according to the institutions, however, we can point out that some charge the well-known annuity fee, also known as a maintenance fee, whose amount can be divided among the 12 invoices of the year.

In addition, there is still a revolving interest rate, also very feared among consumers, a fee for the immediate cost of the card, and also for a request for a duplicate of the same, in case you lose an original one.

An interesting piece of information to point out is that the credit card brand also varies, and can be accepted even outside the country, while others are not accepted even by all domestic machines.