Having a credit card can be a good alternative to face an unforeseen event or if you want to buy a durable good. If you do not have a card and you are interested in one, we give you the recommendations so that you can choose the card that suits you best.
The first thing you should take into account is that it is not extra money, but rather it is used to finance purchases or direct payments.
What use will you give it?
Whether you have a bank account or a favorite department store, you should think about what you could use your card for.
If you choose a department store, you can save in some cases the annuity, but bearing in mind that you can only use it in those establishments.
If you opt for a bank or fintech card, you should know that banks usually return points or offer certain promotions in some stores. In the case of fintech companies, the advantage is that some give you the option of deferring your payments over months.
Be careful, keep in mind that deferring the payment of your purchases may have an extra cost.
What are your income and debts?
A recommendation from the experts is that your debts, both credit card and other instruments, do not exceed 30% of your salary.
This is the formula so that you do not see yourself pressured in the month or the fortnight and avoid falling behind.
CAT, commissions and annuities
The annuity is the payment that each bank charges for giving you the plastic and on the Condusef page you can check how much each banking institution charges you for this concept. Some banks offer promotions to exempt this payment.
The Total Annual Cost (CAT) helps you compare between different credit products, it is expressed in terms of percentage with annual validity. The CAT on a credit card will provide you with the cost without considering the VAT of the commissions and the interests that may apply.
The commissions are the charges that you are charged for plastic replacement, collection management in case you are late and for non-applicable claims, among others.
Benefits and promotions
Most cards offer you months without interest when you buy at certain establishments, but they also give you discounts. Some are famous for having presales for concerts and entertainment events.
What you must not do
According to the fintech Stori, one of the purchases that you should avoid with the card is the debt of another card, since you are not resolving it and you can make it bigger.
It is also not recommended to make food purchases, so if you go to the store and pay with your credit card, you are only feeding your debt with expenses that you can pay at the moment.
