The advantages of having a credit card can only be seen if it is put to good use. That is, if you are a person who ignores the payment dates or you have constantly returned payments, the bank will not give you special benefits. But if you have taken care of your record, surely your bank will allow you to enjoy many privileges.
Taking on the cards responsibly is the key to success in building a good credit history, which will serve as a reference for any other credit application you make for more relevant matters, such as a car or a house. Therefore, it is worth being consistent with this commitment.
Now, before requesting a credit card, you must take into account several aspects that will help you define whether it is the one that best suits your needs and other criteria:
1) How much to pay for the annual fee,
2) What are the initial charges,
3) What is the yearly percentage for purchases and balance transfers, among others.
On the other hand, it is important that you define your priorities because there are special credit cards for people who usually travel constantly, which offers you 100,000 bonus points and other incredible privileges and rewards such as Venture Miles Rewards.
In the same way, you can opt for a card that is designed to start your credit history on the right foot, such as the Secured Card, which allows you to achieve a line of credit for the same amount as your security deposit. So, for example, if your deposit is $ 200, your credit line will be $ 200.
If you don’t want to end up like an “average American,” you must completely stay out of credit card debt. This means spending only what you can actually afford and repaying your bill in full every month.
Planning is the basis for maintaining your finances. From this very important element, we can set certain conditions detailed below and guide us in the proper use of our credit card:
1) Establish your capabilities: having this financial resource is undoubtedly an advantage; however, you cannot compromise your income or compromise your financial status.
2) Pay on time: avoid penalties and do not allow your debt to grow unnecessarily. Only buy what you can afford, when you can afford it, and pay it off on time, always.
3) Compare the offers: don’t buy the first credit card they present to you, remember to choose the one that suits your requirements.
4) Evaluate your expenses: think clearly when it is convenient for you to make a payment in cash or with your card.
5) Take advantage of promotions: Many banks offer introductory rates, but you can’t help but see what will happen after that magic is over. If you have in mind to request a credit card, never forget to ask for advice and compare the different proposals before making a commitment.