We are regularly confronted with the need to have credit cards as a means of payment, not only for convenience, but also for widespread acceptance with particular emphasis on the Web environment, or for purchases of various products and services on the Internet.
Many of us have a credit card as a consequence of joining certain banking products and services. Others hire a card to buy products or services in stores with payment facilities. Regardless of the reasons, we leave 3 tips to save money with your credit card
Avoid Credit Card Annuities
Large majority of banks and credit card issuers already allow their customers to have credit cards without any cost. That is, exempt from annuities. However, it is very common to create conditions for such an annuity to be exempt, which conditions may lead the user of the credit card to improper use of it, creating limit situations of debt on credit cards.
Although there are conditions that could lead to considerable gains, it is important to keep in mind that the discipline is success in the use of credit cards and that without discipline there is no benefit program that is advantageous for the user.
That being so, opting for a credit card with no annuity and no associated terms is the best decision for a long lasting and healthy relationship with your credit card. Generally, entities that act with a lot of presence in the internet in the commercialization of credit cards usually gather these and other advantages for their new clients.
Can Avoid Paying Interest
One of the advantages of credit cards is the existence of a free credit period which a rule can be equivalent to 50 days. There are 50 days where you can use the money from your credit line without any charge.
Obviously the possibility of avoiding the payment of interest depends on the modality you wish. A useful advice is, when joining a credit card, opt for the 100% payment method and, if in any month, decide to pay only part of the credit line, opt for the ATM terminals through the payment option services.
This possibility is present in each monthly statement of the card account, where if you do nothing will pay the line of credit depending on the mode of payment you have chosen. If you wish to collect the date and pay part of the credit line, always bearing in mind that the capital was not settled at the end of the free credit period will be subject to interest counting until the next payment or until you decide to settle .
This facility is, on the vast majority of credit cards, accompanied with considerable interest rates, with rates averaging 16-20% on average in gross terms. This reality is completely inadvisable thus being of value opt and respect the payment to 100%.
Avoid Cash Advance
Definitely the mode of cash advance or withdrawal of money on credit cards is completely inadvisable. However, I recognize that it is tempting, especially when there is no available money being the only form of payment.
Two ways exist to avoid this possibility, the first being simply to deny the use of cash advance and the second to implement personal finance model that avoids monthly liquidity breaks.
The first form is simple but requires monthly liquidity on the part of the user so the user is not tempted to resort to cash advance to satisfy needs and desires that require money as an exclusive payment method.
The second form, however, has many benefits for the credit card user since it allows the cash advance to escape, to have a controlled financial life and with greater comfort, implementing personal finance techniques accessible to all. Simple techniques like creating an emergency fund, creating a structure in personal finances, creating a budget and performing its analysis and monitoring, among others.
These two ways allow the user of the credit card to avoid extremely high charges, since the possibility of cash advance has associated two charges.
One of the charges has a fixed component per transaction, meaning regardless of the amount of money you raise with your credit card will always bear a flat charge. The other charge is variable and is about 4% of the withdrawal amount. Both charges penalize the user of the credit card in some euros, if not tens of euros per withdrawal.
Many other tips could be part of this list, however, if adopting a responsible use of your credit card will not have complications, therefore, opting for credit cards without annuity and without conditions of exemption from it, opting for the modality of payment to 100 % Benefiting from the free credit period and avoiding cash advance, there is no room for dissatisfaction with the use of a credit card.
This is because, will not bear interest, annuities or unnecessary charges. Likewise, most of the penalties associated with credit cards depend on not following these three simple tips. That being said, three simple credit card tips open the possibility of saving money with your credit card.