Using your credit wisely is important, not just in times of contingency, but all the time. Achieving this can represent that your wealth is strengthened, in addition to that the credit institutions will see you as a reliable person, which translates into more opportunities to obtain the benefits of these financial products and in a good record in the Credit Bureau. According to Condusef, these are 5 tips for you to use them wisely. Read What happens to joint mortgages if a spouse dies
1. Less time to pay equals less cost
Unless you pay months without interest, the best thing is that if you request a credit or make a purchase through this mechanism, it is recommended that it be as short as possible. The reason is very simple: the more late you pay, the more interest they will charge you. In the end, paying ‘little’ will become paying a lot.
5 ways to use your credit wisely. Photo: Pixabay
You may think that a long period is more comfortable, but better think twice. And it applies to both personal loans, credit cards and mortgage loans.
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2. Don’t be convinced by an insistent seller
When a promoter wants to sell you something, be it a credit card, a new car or a house, they will use all possible arguments to buy you. And it is evident that he only talks about the advantages of his product. But be very careful: always make comparisons in different parts, be well informed, pay attention when they give you the information and check if they can offer you the same thing at a better price or with better conditions elsewhere.
3. Use your credit to increase your wealth
One of the most important rules to use a credit is that what you are going to buy has a longer useful life than the period it will take to pay it. Buying a modern house, car, or television is a good option. Instead, it wouldn’t be very wise to pantry or renovate your kitchen utensils using your card, unless you pay almost immediately.
4. Buy for months without interest
Purchases with credit cards for months without interest are an excellent option, as long as you do not go over and start accumulating purchases thinking that you are going to pay in installments. This is usually a fatal mistake for your finances. Perhaps buying a cell phone of 6 thousand pesos at 12 months without interest, paying monthly payments of 500 pesos, sounds good.
But if at the same time you buy a smart tv, a washing machine, microwave oven, etc. You will see how the account you will pay increases in the following receipts, like a snowball effect. Above all, consider what REALLY NECESSARY purchases you should make.
5. Never pay only the minimum
When the receipt of your credit card arrives, different amounts come that have to do with the payment you must make. The purchases you made, how much you owe in total for interest and how much is the minimum you can contribute that month.
Don’t make the mistake of thinking that paying this amount will be enough. If you do so, the bank will start charging you interest that will accumulate until you return your unpayable debt. If it is not a purchase for months without interest, the ideal is that as soon as your statement arrives you pay or settle those debts that can cause problems.