Beyond the debate whether credit cards are good or bad, if they should always be used or only in case of emergencies.
5 min read
The opinions expressed by employees are personal.
Beyond the debate whether credit cards are good or bad, what you really need to ask is whether they should always be used or only in case of emergencies and really define a financial strategy in their use.
Here we leave you a few points that can help not only in your card management, but in your personal finances.
Consolidated your expenses
It is easier to have financial order when everything is concentrated in one place.
If you are an employee, use your credit card to direct payments and all your expenses in general and thus only make a transfer. Instead of being the same place where you receive money and withdraw it, you use your debit account to receive the money (and do not walk with the entire fortnight in your wallet) and spend with the card.
If you are an entrepreneur you should use two credit cards: one for personal expenses and another for company expenses, and also have another debit account where you receive the money. As a business man or woman it is important to keep your personal and company expenses separately and a credit card can help you a lot to achieve it.
Actually insurance and shielding are more charged on the credit card part and not so much towards debit. That is, if a robbery or loss occurs, it is easier for the financial institution to respond for a credit card than for a debit card. Now, it is not at all good either that you bring everywhere the card where all your income falls, better to leave it at home and leave with your credit card.
Find that your cards have a security PIN and do not share that password, much less your credit card.
This is a fundamental and most attractive point of a credit card: that financing can be free. You just have to understand some basic concepts of a credit card and you will never have to pay a cent in interest: be a totalero on time.
There are three dates on a credit card that you must handle perfectly well: cut-off date, payment date and start date (this is not mentioned on the statement, because it is one day after the cut-off date).
- Cut-off date: It is 30 days after the start date. It is the month in which the institution granting the credit card allows you to spend everything that is within your credit limit without requiring your payment. It is a good period because you should not pay anything and buy without money so to speak.
- Payment date: It depends on the institution, but it is between 15 and 20 days after the cut-off date. This is a grace period where it is not necessary to cover the total debt. If you are a totalero, that is, paying 100% of what you bought until the payment date, your financing will be free. But if you pay less than the total, as the minimum, then you will have to pay interest on the average balance.
If you want to start making a strategy with credit cards, see how much you can spend in a single month. Because for this strategy to work it is essential that you pay everything you owe at the end of the month, without missing a single penny. If you make the payment to not generate interest the start date you can have a financial strategy that will optimize your finances.
Bureau and Credit Circle
It turns out that savings are not applauded in several countries, but the only thing that is verified is the level of debt. Therefore, you can have investments, savings, insurance, retirement projects or any other investment that better your finances, but as they are not linked to debt as no financial entity can see it. If you use a credit card it helps that you can be visible to and, remember that at the time you buy a credit or even if you open a cell phone line you are already registered. That's good, since you make yourself visible to the Mexican financial system.
If you use credit and, above all, in a responsible way, always paying on time, it gives you access to have more and better credits. Check your credit history at least once a year. You can access it free of charge once every 12 months.
The credit card is not a good or bad financial instrument per se . It is simply how you use it and where you are in your financial strategy.