In Mexico many people refuse to use a credit card. Among the reasons is the high cost that it can represent, the high interest and the fear of not being able to pay the balance.
However, responsible and appropriate use of this tool can make it an ally in your pocket.
Of the almost 27.4 million Mexicans between 18 and 70 years old last year, 32.7% had a formal credit -departmental credit card, payroll, personal, automobile, housing, community, group or solidarity credit- , that is, 3 million more than there were in 2018, according to data from the National Survey of Financial Inclusion (ENIF).
How to use a credit card without paying interest?
Before using your credit card it is important to keep in mind that, if not an amount that you have to pay.
Once this point is clear, you need to prepare a budget to know how much your income and expenses for the month amount to. For the proper use of a credit card, the recommendation is that you do not allocate more than 30% of your resources to the payment of credits.
There are two dates to take into account: the court date and the payment date.
If you use your credit card after the cutoff date, you will have up to 50 days to cover the amount of the debt.
When paying, there are three amounts that you have to pay special attention to: the balance, the minimum payment and the payment so as not to generate interest.
Although it is not bad to make minimum payments, it is not ideal because the interest will increase month after month and you run the risk of an unpayable debt.
Sometimes the non-interest payment is equal to the balance amount. If you cover this amount, you will avoid paying interest. In case you cannot cover this amount, take into account that the interest charge is made based on the outstanding balance.
For example, if you have a balance of 1,000 pesos and you make a payment for 800 pesos, the bank or institution that gave you the card will charge interest on the 200 pesos that were pending.
Benefits of using a credit card
In addition to having up to a month and a half to pay for purchases you make with a credit card, there are other benefits:
One of them has to do with monthly purchases without interest. This option is recommended to acquire durable goods, whose lifespan is greater than the time you will be paying.
Another advantage, depending on the institution with which you contract, is that you can have rewards or points that are converted into cash.
before hiring
a plastic you have to take into account aspects such as the collection of interest, penalties and commissions, as well as the famous total annual cost (CAT).
It is also important that you compare between two or three institutions to find out which credit card suits you best and which one suits your needs.
