However, this product should be used with care. Many people decide to make a credit card and end up thinking that they have achieved an extension of the salary. The result is that more than 70% of the debts of Brazilian families are concentrated on the credit card, according to the National Confederation of Trade in Goods, Services and Tourism (CNC).
To avoid falling into this trap, check out some important tips before making a credit card:
Making a credit card: Which one is the best?
The main credit card options available are those linked to banks, department stores and hypermarkets. The options linked to banks are more generic and can be easily integrated with your checking account, making payment easier.
The options linked to department stores and hypermarkets, on the other hand, usually present some advantage for purchase at the institution that offers them (discount on the purchase, more time to pay the invoice without interest).
To help you choose, find out about this tool that helps you compare the credit cards available on the market.
Making a credit card: What are the main advantages?
- To be able to plan payments and earn a few days to effectively pay for your purchases;
- Install interest-free purchases;
- Possibility to consolidate all expenses of the month in the same place;
- Accumulate points in the rewards program, which can be exchanged for appliances, electronics and airline tickets;
- Make online purchases on international sites;
- It is possible to take out monthly insurance to cover any amounts if you are stolen. On the other hand, there is no insurance for cash.
Making a credit card: What are the main disadvantages?
- If you pay the minimum of the invoice on the due date, the interest on the residual value is among the highest in the market;
- Spending on impulse and without planning, you can end up accumulating a debt greater than you can pay;
- Some modalities offer very high annuities;
- There is always the chance that your card will be cloned, especially with the increasing use in the virtual world.
Making a credit card: What is the best way to use it?
- Choose the due date close to your salary to avoid the risk of spending the invoice money on something else;
- Use Good Lenders to automatically categorize your credit card expenses and find out where you are spending too much;
- Find out the best date to buy. It allows the longest period for payment of the invoice;
- Using spending targets to get into a snowball, concentrate all possible expenses on your credit card to accumulate more points in the rewards program.