Having an credit card Without a doubt, it is a real convenience, which allows you to make any type of purchase in physical stores and online without carrying cash, and having at your disposal the opportunity to have cash at each ATM that you have at your disposal. access. Without a doubt it sounds like an opportunity that no one would miss, but before hiring this financial instrument, it is important that you know what it means to hire a credit card, also keeping in mind the different types of cards that exist, so that you can consider all the options and make the best decision decision.
What is a credit card?
Una credit card is a financial instrument in which a bank offers you an amount of money that you can use to buy products and services in physical establishments and on the internet, on the condition that at the end of the month you have paid the minimum established according to the purchases you have made during the month, paying the rest little by little. Many services such as renting a car or lodging in certain hotels require a credit card to be able to contract them, since they represent a way to protect themselves if the room or the car suffers any damage. A credit card is also useful for making all kinds of purchases online and for splitting payments into monthly installments when stores do not offer this option.
However, it is important not to confuse a credit card with a Debit. While on the credit card it is the bank that lends you a certain amount of money to make your purchases, with the debit card you must be the one who deposits the amount of money you want in the account, and your purchases will be discounted from is. The main difference lies in the fact that the debit card works more like a savings instrument, in which you will only spend what you already have, while the credit card gives you the flexibility to make larger purchases, being able to pay them little by little.
What does it mean to have a credit card?
Una credit card It is not difficult to achieve, but once you have it you must be really responsible when it comes to managing your finances so that you can meet payments on time. This is where the real credit card business comes in. The bank gives you a loan to make the purchases you need, in exchange for a small commission for each purchase made. It is important that you know that most of the purchases you make with a credit card will generate interest, which may increase if you delay in making the corresponding payment or if you do not pay the established minimum. In this way, a small purchase that has not been paid can become a very heavy burden if we do not attend to it on time.
The advantage is that many times you will find banks that offer you zero interest options on your purchases as long as you leave your debt in zero before the cut-off date. If we learn to use the t We will intelligently find in them a tool that can take a load off our shoulders
What are the benefits of having a credit card?
La main advantage to have a credit card is that you will always have the possibility of making both small and large payments without these becoming a heavy financial burden that you have to cover immediately. If your problems are liquidity, that is, you have the money, but you must wait for the payroll or for it to be done to cover your expenses, have no doubt that a credit card will be a very suitable option for you.
Additionally, banks generally offer promotions and exclusive offers for their clients, such as a point system which you can use as credit to make more purchases. You will also have access to concert or show pre-sales, as well as exclusive seasonal promotions. If you like to travel a credit card is essential, not only to rent cars or stay in hotels, but it will also allow you to leave the emergency room in case you need an emergency ticket, pay for medical assistance or any other service you need.
All of these are the positives that come with hiring a credit card, and without a doubt you will be able to enjoy them as long as you know how to use your card responsibly by paying at least the minimum amount at the time established in your contract. To learn the responsibilities that come with having a credit card, continue reading this article:
What happens if I don't pay my credit card on time?
If you are new to the world of credits It is very important that you take into account the concept of credit history. Every time you acquire a financial product that involves a line of credit (that is, a credit card, a personal loan or a mortgage), you are evaluated based on the way in which you paid the credit. If you did it on time, if you returned the full amount, if you paid the interest and commissions, if you exceeded your credit or if you used it responsibly.
All this information is part of your credit history, and the moment you seek to request another credit of any type, the companies will review it and based on this they will decide whether or not to grant it to you, or under what conditions and schemes they will grant you the credit. If you have a good credit history, you will be offered preferential interest rates and better financing schemes, while people with bad credit history can hardly even get their applications approved.
As if that were not enough, the delay with the payment of your debt will generate interest that day by day will multiply, increasingly difficult to pay. That is why before hiring a credit card you must be very aware of the responsibility it represents, and if you do not have total security that it is what you need and that you can comply with all payments in a timely manner. It is better that you look for some other financial instrument to manage your money.
How do I know if I am ready for a credit card?
It is true that not everyone is financially prepared to have a credit card, and even those who are, many times do not have the necessary knowledge to carry out proper financial management. If you want to apply for a credit card, we recommend that you have the following profile:
- Being an adult who has enough fixed monthly income to cover all your basic needs and a little more.
- Get in the habit of making payments on time.
- Have previously handled a debit card.
- Have access to a smart phone to be able to receive notifications and have the account statement always at hand.
- Be familiar with the bank payment system and have made payments before.
- Have an established monthly budget and know exactly where you invest or spend your money.
If you identify with the characteristics that we described previously, you are a perfect candidate to apply for a credit card. We will tell you how to do it right away.
How to contract a credit card?
To hire a credit card You should go to the bank of your choice, taking the required documentation with you. You must fill out an application and it will be reviewed based on your credit history. If you do not have it, elements such as your income, your age and the time you have been working will be taken into account. Based on this, you will be offered a line of credit for your card, and you can start using it for your daily purchases.
An advantage is that many banks offer the opportunity to do everything to most of the online process, so you can surely find a way to get your card from the comfort of your home. On both occasions, the documentation that is requested is generally the following:
- Official identification (DNI or NIF)
- Proof of monthly income.
- Debit bank account if you have one.
- A Mobile phone
- A postal or electronic address where you can receive your account statements.
It is very important that when you hire your credit card define the cut-off date very well, which will be the moment when the new monthly cycle of the purchases you make begins. Also always make clear the deadline to pay, since if you do not comply with the payment on time, as we said before, you will be willing to pay interest and extra commissions. Follow these tips and you will find a credit card the best tool for your financial management.