19 tips to use your credit card wisely
Credit card, friend or villain?
The answer is: you choose ! The credit card is practical and brings many advantages for you to buy something without the commitment to pay on time. But you have to use it intelligently to keep your invoices up to date and not end up with a debt like that.
If your mission is to handle your card better, in this text we explain how it works and put together 19 tips to use your credit card to your advantage.
How to use your credit card smartly?
1. Assess the need for installments
2. Online shopping, only on secure sites
3. Control the impulse to buy
4. Choose a great bank (avoid store card)
5. Pay attention to invoice expiration
6. Set a maximum limit
7. Always pay attention to your card balance and invoice
8. Escape the annuity fee
9. Keep the invoices
10. Keep everything written down
11. Don't count on the minimum payout
12. Do not pay electricity, water and telephone bills on credit
13. Don't Withdraw Your Credit Limit
14. Don't have more than one card
15. Never lend your card
16. If it gets out of hand, cancel the card
17. Have a reserve fund
18. Use points and rewards programs
19. If you already have debts, settle them before you start using the card
Conclusion
How the credit card works
A credit card is a form of payment that works like a loan. Your limit is predefined and allows you to spend on goods and services without having to pay at the time, as well as allowing you to pay in installments for a purchase. Once a month you pay your bill , equal to the sum of everything you've spent on your credit card.
Careful! If you do not pay your bill in full or are late with it, interest will be charged, and in the case of a credit card it can be quite high.
How to use your credit card smartly?
Credit cards, being easy to acquire, can become the villain of your finances if you don't know how to use them intelligently. Therefore, here are 19 tips for you to know how to take advantage of it in moderation and safety.
1. Assess the need for installments
Not everything needs to be paid in installments. We end up paying for unnecessary purchases in installments, and the installments accumulate, like a snowball, until it becomes impossible to pay the invoice.
Therefore, assess whether there is really a need for installments, and avoid committing to many installments, as financial unforeseen events happen. If you can't afford something in cash right now, see if it's really the ideal time to make that purchase.
2. Online shopping, only on secure sites
It is very convenient to shop online with your credit card. However, care must be taken when entering your bank details. There are malicious people who create fraudulent sites to discover your data.
In order not to fall for this scam, before entering your credit card information, confirm that the site is reliable and has an SSL digital certificate (security seal).
It is simple to check this, just see if the website url starts with https:// and if at the top left of your browser, in the website address bar, there is a padlock symbol.
3. Control the impulse to buy
The credit card gives the false impression that we have more money and that we can spend more. But it doesn't quite work that way.
You shouldn't buy just because you don't have to commit to paying right then and there. Control your urge to buy.
Before running your card through the machine or entering your data online, consider whether you need that good or service, or if it's just a wish . Research, compare prices and postpone the purchase to make an informed decision.
4. Choose a great bank (avoid store card)
Have credit cards at banks that offer great conditions for you. Research the fees and services of each institution to see which one fits your reality.
Also, avoid store cards, outside of those you go to frequently. Accumulating them can cause financial disarray by encouraging impulsive purchases. You end up getting X% off a purchase you wouldn't even make.
5. Pay attention to invoice expiration
Avoid delaying the payment of your invoice as much as possible , or the interest will be high. Be aware of the expiration date. Write down the day on your schedule or use cell phone notifications or the bank's own app to let you know. In financial life, we have several due dates to pay attention to, but it is very important not to forget this one!
6. Set a maximum limit
The bank releases a maximum limit, but did you know that you can adjust it? If a limit of BRL 1,000 was predefined, you do not need to leave all of this amount available for use. Set how much you'll be able to pay on your bill and shop up to that limit so you don't end up with no money to pay your credit card.
7. Always pay attention to your card balance and invoice
Try to have the bank application on your cell phone or generate a bank statement at the ATM frequently (but be careful with the number of free monthly statements!) to have control over your card balance and the amount of your invoice. Not keeping track of this throughout the month can give you the false impression of not having spent so much, resulting in an unpleasant surprise when you receive the invoice .
8. Escape the annuity fee
The annual fee is a charge made for using the card. It can be billed annually or divided into the monthly bill. Who determines whether this fee will be charged and how is the financial institution itself. Therefore, you can avoid this fee by researching banks that have cards without annuity.
9. Keep the invoices
Keeping the invoices for what you bought with your credit card is important in case an improper charge occurs or you need to return the product.
According to the Consumer Defense Code, the exchange or return of a product has a period of up to 90 days. If what you purchased has a defined warranty, keep the invoice during that time. In the case of non-durable products and services, keep proof of payment for 30 days.
10. Keep everything written down
Did you spend it on your credit card? Write it down, whether in a notebook, spreadsheet or finance app . Describe whether that purchase was in cash or in installments, with interest or without interest. This way, you control your credit card usage, don't extrapolate the bill and can understand where you're spending too much, in case you need to cut expenses.
Want to have an amazing financial spreadsheet to control your finances? Download yours here!11. Don't count on the minimum payout
The minimum payment is synonymous with paying a little now and a lot more later. If you don't know how it works, paying the minimum of your monthly bill transfers the unpaid amount to the following month, but with very high interest rates, as you enter the revolving credit card.
You don't end up with a late bill, but the outstanding balance multiplies in a few months. Therefore, no counting on the minimum card payment.
12. Do not pay electricity, water and telephone bills on credit
If you are paying electricity, water or telephone bills on credit, stay alert ! Since your credit card is a loan, if you are using it to pay basic bills, you need to evaluate your finances. Remembering that the credit card is not an extension of your money, okay?
In addition, paying a bank slip with a credit card, although it is possible, generates the Financial Operation Tax (IOF).
13. Don't Withdraw Your Credit Limit
The withdrawal of the credit limit is allowed by some banks, consult yours to find out how much you can withdraw and the conditions for using the service.
However, we recommend that you avoid using your credit limit as much as possible. Why? As soon as you withdraw money from your limit, interest begins to be charged until the day your invoice closes. It's a price you won't want to pay.
14. Don't have more than one card
Avoid accumulating credit cards . Controlling expenses, in addition to knowing the interest, fees and due date of the invoice for each of the cards, can lead to a lack of financial control. The chance of you getting into debt and high interest being charged is great. Therefore, choose to only have a card with good conditions of use.
15. Never lend your card
While lending someone your card may seem like a good deed, learn to say no. If you really want to help, give the necessary amount of money.
Your credit card is for personal use, in addition to borrowing it, your limit is compromised, and if the person does not pay you back and the bill is not paid, you will pay the high interest.
16. If it gets out of hand, cancel the card
If you are unable to pay your card bill, cancel it . Just ask the bank for the procedure and ask for the receipt.
After that, you can no longer buy anything with it, but open invoices will still be charged. In case of debts, the revolving interest stops and you can pay the debt in full or negotiate it .
17. Have a reserve fund
Emergency reserve is essential for life's unforeseen events. Having money to support your family for at least 3 months can be an ally if your credit card goes into revolving interest or you don't have an available limit for an emergency.
To make your emergency reservation, check out our tips on how to save money !
18. Use points and rewards programs
The loyalty programs that some banks and carriers offer to their credit card users can be advantageous. It is possible to exchange the accumulated points for products or services and even use them to pay the card bill. But beware, most points have an expiration date, be sure to use them before they expire!
19. If you already have debts, settle them before you start using the card
Did you know that every time you use your credit card you are going into debt? Yes, having debts is something normal to be able to carry out projects and acquire goods. But it can become a problem if they fall behind.
Therefore, if you already have overdue debts, avoid using the card until you are able to pay off all of them. If you need a little help to make this happen, you can count on QuiteJá. We are a debt negotiation company with special discounts and conditions. Thus, you are free of debt and use your card with less risk.
Conclusion
These 19 tips made it easier to use your credit card, right? The most important thing is to use it wisely and safely , to avoid getting hurt. And if that happens and the debt arises, know that QuiteJá can help you negotiate this pending issue and regain control of finances.
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