Have a credit card offers significant advantages for many people, because it can protect you from prices, provide insurance against theft, cash refunds, extended warranties and exclusive benefits in certain establishments.
However, it is important to consider that some cards apply interest rates extremely high, not to mention potential annual fees.
Factors to consider to learn how to use your credit card
In the first instance, it is necessary to take into account the basic level, where the interest-free monthly purchase option is usually available in most of the cards.
However, it is important to understand that this benefit should not be used indiscriminately. You should only take advantage of it if you have enough income to cover the corresponding payments.
It is important to note that, at this level, it is recommended to use purchases at months without interest (MSI) in two specific situations. First, to acquire passive items, which are those that tend to lose their value over time. It is also convenient to use M: YES for assets, which are those that generate income.
On the other hand, there is the intermediate level, where the credit card is useful for making large purchases, taking advantage of the insurance and additional protections it offers.
It is crucial to keep in mind that the purchases made must be within your budget and should not constitute unnecessary expenses. At this level, it is essential to take advantage of the advantages offered by Credit cardsas they provide peace of mind instead of worries.
At the expert level, you will use your cards as a complete alternative to cash. Here, it is important to select cards that offer cashback or points for each purchase, but it is essential to limit yourself to buying those products that you already had in mind.
At this level, it’s an important factor to be aware of how much money you’re allowed to spend and make sure you pay the balance in full each month to avoid incurring interest. Therefore, it is essential to use it strategically and not forget that it is money lent by the bank, which must be returned.
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