A. M. Credit cards can be a great financial tool if used wisely, but they can also become a problem if not managed well. To avoid unnecessary debt and protect your pocket, it is key to know some basic strategies for use.
The first tip is to always pay the balance in full before the due date. Leaving an outstanding balance generates interest that can accumulate quickly and make your purchases more expensive. If you can’t pay in full, try to cover at least the minimum payment to avoid additional fees.
Another key point is not to spend more than 30% of your credit limit. Keeping a moderate use of the card not only helps you control your finances, but also improves your credit history, which can benefit you in future credit applications.
Also, take advantage of the benefits and rewards offered by the cards. Many offer discounts, interest-free months or points that can translate into savings. However, always check the conditions to avoid hidden costs.
Finally, avoid withdrawing cash with your credit card. This type of transaction usually has high commissions and generates interest from the first day. If you need cash, it is better to resort to other options such as an emergency fund or a loan with better conditions.
You may also be interested in
3 key steps to manage your finances and avoid debts
