Review what cards you have and what they can be useful for in the Covid-19 contingency.
5 min read
The opinions expressed by collaborators are personal.
Editor's Note: This text contains current public information of the various entities in order to be relevant during the contingency. Being a rapidly changing situation, the information could be constantly updated. On all Coru.com platforms we will be aware of possible updates.
The National Banking and Securities Commission (CNBV) announced the support measures that banking institutions will apply to clients whose income is being affected, including the suspension of credit payments or partial deferral for up to four months, with the possibility of extending it to two more months.
The balances may be frozen with or without an interest charge, as indicated in the CNBV statement. The types of credits that apply for this support are: home with a mortgage guarantee; revolvers and non-revolvers of natural persons, that is: automotive, personal, payroll, credit card and microcredit loans; as well as commercial credits of companies or individuals with business activity.
An important detail is that to access these benefits, the credits must be valid and current as of payment until February 28, 2020.
“These support measures are not new, they are applied in cases of national catastrophes and are a sign that banks have the strength to help their clients. However, it must be borne in mind that this is a measure of relief or a temporary grace period, and that sooner or later it is money that we will owe , ”warns Luis Madrigal, director of Coru.com . “In particular, with credit cards we can have strict control to use them in our favor at this critical time, since they could even be useful, for example, to make important purchases online or as a guarantee that some hospitals ask the enter a patient, “he adds.
If you are considering using your plastics in this contingency season, the financial services comparator Coru.com shares the following recommendations:
Review what cards you have and what they can be useful for in the Covid-19 contingency
There is no ideal number of cards more than you can maintain without drowning your personal finances. Remember that they are payment instruments that allow you to buy now and pay later, with certain advantages such as online transactions and some discounts, depending on the bank that issues it or if they belong to payment networks such as Visa or MasterCard .
The first thing you have to do is check how many plastics you have and how many are really worth keeping.
The credit card in this contingency can be very useful to speed up your vital purchases on the internet as well as have financial support in case of hospital emergencies.
If you are not sure of having the best credit card, visit the Coru.com platform, which during this time of confinement will give attention to all users with doubts about the best financial product to have in Mexico.
Know your debt capacity
A line of credit is not extra money, it is an amount that must be paid sooner or later. Therefore, you should know the limit that you can pay month by month. Experts recommend not to allocate more than 20% or 30% of your total income. That is, if you have an income of 10,000 pesos, your monthly payments should not exceed 2 or 3 thousand pesos. In this way, you will not compromise the budget for your daily expenses such as food, rent, services (water, gas, electricity, etc.), among others.
Another recommendation that can help you define the limit amount of your debts and have a good credit history is not to occupy more than 50% of your line of credit.
Check the interest rate of your card
In other words, ask what the cost of your credit is. That is, depending on the interest rate, your amount to pay will increase. If you think that at some point you will not be able to pay off your card debt, look for a card that offers a low interest rate.
Plan your purchases for months without interest
After knowing your ability to pay and being cautious with the interest rate, the key to not getting into debt is to plan each purchase you are going to make with a card. Try to use the interest-free months only for urgent or durable things after paying.
Use card after court date
If you use your credit card after the cutoff date, you will have around 50 days to pay. The cutoff date is the sum the bank makes of all the expenses you made in the month, to assign you a payment date. Thus, you can take advantage of all that time to save and pay on time.
Credit cards help you pay little by little for bigger expenses. The main keys to a good use of plastic are to know your debt capacity, plan your purchases and pay your debts at the end of the grace period.