Credit cards are an insurmountable help when it comes to making some purchases without having the necessary cash; However, it is very easy to fall into the vicious circle of buying more than we owe and then see ourselves in trouble when paying the corresponding amount.
One of the main advantages that plastics give us is the possibility of dividing the purchases we make in different installments, that way, we will not have to pay everything at once and our budget will not be so reduced. However, not everything is happiness, and it is necessary to take into account certain basic points when it comes to installment financing:
It is not free
Financing in installments costs you. Credit cards give you this possibility, but the more fees, the more interest you pay. This you must keep in mind when selecting the number of months you will take to pay something, otherwise, the “discount” you thought you used, will be non-existent.
The number of fees must not exceed the duration of the asset
According to experts, at the time of financing you should not do it in more installments than the good lasts. For example, an appliance has a long life, so there is no problem in financing it for more than 6 installments if necessary, while hairdressing costs or consumption in a restaurant is something that should not happen from a single fee. .
If possible, seek to be a total zero
Calculate your purchases in advance so that, with certain exceptions, most of the time you can pay the total amount at the end of the month. Not only will this allow you to organize your budget more, but it speaks well of you as a customer.
Do not consume more than 50% of your credit line
A basic recommendation in the use of your card is not to use more than 40% to 50% monthly, as this shows that you are depending on it more than you should. This is subject to basic exceptions, such as some important purchase, but in general, it is a rule that you should implement to your finances.
If you are one of those who always differs your purchases, the interest rate is a point that yes or yes you must take into account. There are many options available in the market and some may give you better conditions than you currently have. To compare them and find the ideal plastic, use the Mowgli credit card comparator.