Both consumer associations and credit card issuers emphasize the correct use of credit cards to avoid future problems and shocks. Although the credit limit is usually high, each user must make use of them according to their purchasing power. Therefore, we have prepared this list with the 5 great tips to properly use this financing method that, in certain cases, can also be substituted by the microcredits of your credit card web portal.
BIN List: BIN numbers are the first 6 digits on a credit card. It tells the checker where the card was issued and by what bank.
The conditions of use of your credit card must be clear not only before making a payment with it, but also before signing the contract with the issuing entity. Some aspects that you cannot ignore are:
· The credit limit at your disposal.
· The fee to pay, which in most cases can be agreed with the entity, for example to stipulate a fixed amount.
· The periodicity of the installments to be paid, which normally occurs each month.
· The APR that carries the credit card.
· Other fees associated with the use of the card, such as withdrawing money at ATMs.
· Create a budget to use the credit card
· In case you have any debt check if your bank allows you to have credit cards
The credit limit that a bank puts at your disposal with the card is sometimes double or triples the monthly income you credit. However, that does not mean that you should use all your credit. In fact, the most advisable thing is to establish a previous budget of expenditure. If the use you will give your card is timely, make your calculations to establish when you will use it and in what period you will be able to return that amount plus interest. It is essential not to use the card beyond your means, as the penalties for non-payment are usually high.
Either through the Online Banking service or at the ATMs of your bank you will know exactly what is the balance of your card and other information about your status? This is very important so that the accounts balance and you do not spend more than the account. It is also essential to review the payments that the entity applies for maintenance and other concepts, to know if they meet the stipulations of the contract signed at the beginning.
One of the biggest mistakes of many users is to use several credit cards. Apparently, the advantage is that your available money is higher, but the obligations also multiply. In addition, a negative behavior with your credit cards can penalize your credit history and give a negative rating in the risk reports of the Risk Center of the Bank of Spain (CIRBE). To avoid this, here are some recommendations:
Compare the conditions of each and other and stay alone with the best conditions you offer, whether in terms of interest, flexibility or availability. In many cases you will have to pay closing fees, but it will be convenient compared to the future savings that you will receive.
If you need more money available, contact your credit card company and negotiate an increase in the credit limit.
Another common error of the credit card users is to postpone the terms too much, which is only a way of deceiving themselves and increasing the expenses by commissions, because to more installments, higher accumulated costs. As we said in the first advice, each user can set their own budget and calendar, but a good practice may be to meet the return of a particular purchase in the next two or three months.
Actually, if you have the ability to return that purchase before the next 30 days, it may be more convenient for you to apply for a personal loan online. In this way, the user is free of ties once the amount and management costs are returned. On the other hand, banks sometimes divide the amortization of credit for periods that are too long.