By Adolfo Ruiz Guzmán, Public Affairs Grupo Financiero B×+
A very happy new year, with the best wishes for 2023! We are still a very good time away from translating as one of our purposes traveling moreit is only necessary to have a good financial planning and really put it as a goal.
Therefore, I would like to share some tips, in addition to the budget, to take advantage of all the benefits of your credit cards and find a trip according to your lifestyle and needs.
1. Consider whether you want to pay an annuity
This is a fundamental factor: evaluate if you are willing to pay an annuity for extra benefits on your card, for example, check if the product offers you a program of miles, points, months without interestyes, among others.
If the decision is yes, search the market for the card that best suits your needs and analyze how much you are willing to pay. High-end cards often offer you lower interest rates in exchange for a higher fee.
Otherwise, if you prefer not to pay a higher fee, then check if there are options within that profile with the greatest benefits. Generally they can have higher interest rates, but on the other hand, you will not be paying anything to use it, just be careful to check the conditions, then a minimum expense is requested per month to avoid fees or commissions.
2. Find the card range that suits you
First, what is range? It is the segment of the card, we popularly know them as classic, gold, platinum, black, etc., this will be determined by your reported income level and if you want to pay for the services contained in the package. Generally, when it is your first card, it will be the classic one and so you can go climbing if you wish.
To select the range, your financial institution may invite you to have one or you can go to request it; Compare the fees, commissions and benefits included in the CAT – total annual cost – of the card you want to make the best decision. One recommendation is to see which one you feel comfortable paying an annuity with. and if you will really use all the services.
3. Select the one according to your lifestyle
Now comes the interesting thing, if you want to travel more, select the one with points in airlines and hotels, so all your purchases can have -in addition to the already known benefits of the cards- plane ticket rewards, different certificates, discounts, access to VIP lounges at airports and, in some cases, months without interest abroad or paying a certain amount and not the total. That is a great way to take advantage of the paid annuity.
4. Use your card responsibly
But something important is that, not because you want to get all these benefits, you neglect the discipline to handle them responsibly. Remember: it is not an extra income, it is an excellent way to finance yourself up to 45 days and with months without interest. What is signed is what is paid.
I hope that with these simple tips you can take advantage of your card even more, review the terms and conditions of your current product and so you can assess and make the best decision.
Let me know how it went with this exercise.
Editor’s Note: This text belongs to our Opinion section and reflects only the author’s vision, not necessarily the High Level point of view.