Why the Credit Card Should Be an Ally in Your Finances


You certainly already know that a credit card, despite paying for many desired purchases, can lead to major financial problems, right? Especially when the spending limit is high, and the person who owns it doesn't know how to manage it well.

Currently, practically all people have one or more credit cards, which really is not something advantageous for your financial health, which over time can even leave you with a dirty name, which ends up preventing you from making several financial things.


And it is for these and other reasons that many people end up considering the credit card, the villain of a stable financial life. What if we told you that it could end up being an ally of your finances? It seems impossible, doesn't it?

However, we can guarantee that when used well, the paper or credit card can change completely. Therefore, so that you can get more information about it, we suggest that you continue reading this article.

Understand How a Credit Card Works

Before we can present how a credit card can be an ally in your finances, it is interesting to show you in detail how it works, since although many have one, not everyone has all the necessary information.

A credit card, as we already know, is a payment alternative, in which you have a limit on monthly expenses, imposed by the financial institution that provided you.

This limit is defined based on an analysis of your profile, in which issues such as your score, fixed monthly income, other debts you must pay, among other issues related to your financial history, are evaluated.

All credit cards have a specific flag, which can be accepted anywhere in the world, or can only be accepted at certain machines.

Regarding the interest rates charged, it is essential to emphasize that they vary depending on the financial institution that provides the credit, some of the main ones are:

  • Annuity: also called maintenance fee, it is quite common, and can be divided among the 12 invoices that there are in the year.
  • Revolving Interest: quite feared among consumers, since its percentage is usually quite high.
  • 2nd copy: when the original card is lost, it is necessary to pay a certain amount for the duplicate.

Among others…

Why the Credit Card Should Be an Ally in Your Finances

As already mentioned, the credit card is seen by many as something that is not very good for personal and family financial health, however, everything is a matter of how we deal with it.

The credit card often has a spending limit, much higher than what we can actually afford, and due to the high chances of consumption we have, we end up spending the money we don't have.

For this reason, it is essential to make the credit card an ally and not a villain.

Making it an ally basically means using it for something advantageous, such as paying an unexpected bill, in which you don't have money to pay at the moment, but you will soon, so you can pay the bill.

So, so that you can make your card a financial ally, check out some tips below:

Have your own limit: Since cards often come with a cap higher than what you can afford, we suggest you set your own spending cap.

Manage:  most credit cards already come with an application, which helps in management, which is another fundamental point. With management, you can see where exactly your money is going.

Use the benefits:  Generally, credit cards have a points program, in which you can use them to pay the bill at a good discount.

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