Credit cards are part of the finances of many citizens today. Through them, expenses are financed, discounts are accessed and they have also served as lifesavers for many people who have lost their jobs.
According to Asobancaria reports, by August 2020, in Colombia, there were more than 15 million active credit cards; In June, purchases with these cards represented 8.1% of total spending by Colombians, which, according to Raddar, is equivalent to about 58.4 trillion pesos.
Although cards represent a benefit for users, they also tend to bring problems, hence even many have chosen to hand over theirs, as shown by Statistics from the Financial Superintendence, which indicate that since April 541,353 credit cards have gone out of circulation.
In fact, the same entity adds that the issuance of cards also decreased, since of the 350,793 credit cards that were issued in January, the figure dropped to 262,570 in March.
The main reason why the circulation of the cards was reduced exponentially is because there are high risks of indebtedness, either due to their mismanagement, high interest rates or due to not paying the card fees on time.
Taking into account the above, it is important – if you have already made the decision to keep or purchase a credit card – that you consider some recommendations to handle them properly. This, ultimately, will result in better management of your personal finances.
Review commissions and handling fees before purchasing
Know what is the interest rate that the bank handles with credit cards, as there are some entities in which this rate may be lower or higher and that will be reflected in the amount that must be paid when the payment cutoff arrives.
The handling fee is another fundamental part, since if you do not plan to use the card on a monthly basis, it will be preferable that you look for an entity that does not charge you a fee or that does it only when you make some type of payment with the card.
Take advantage of the added benefits
Discounts play an important role when it comes to handling the cards. There are some stores that offer monthly offers or lower prices, as long as the payment is with a certain credit card. This will undoubtedly help you save and buy the products you like so much at a more affordable price, although you should consider that the discount exceeds the cost you will assume for the use of plastic.
The accumulation of miles for trips is also another great benefit of this payment method, as there are many cards that have this bonus. In addition, they offer the possibility of redeeming miles either in the purchase of air tickets, in the reservation of hotels, in restaurants or in the rental of vehicles.
Keep them, but carefully
There are cases in which credit cards will help you cover expenses immediately or help you get out of an emergency. However, at this point it is important to remember that it is not extra money, but that you will have to pay it off in a few months.
Also, credit cards are of great help for those who want to start having a credit life and increase their score over time, and then access bank loans for higher amounts.