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Credit cards are present in our daily lives. They are practical, accepted everywhere and help in unforeseen events. But they also hide risks that should not be ignored: high interest rates, commissions, and temptation to spend more than the budget allows.
With the right information, it is possible to make the card a financial ally and avoid traps. It has gathered some useful information for those who use or are thinking of joining a credit card.
A credit card is not just another card. It is, in practice, a renewable credit line provided by the bank. And the shopping money does not get out of the bill: it is advanced by the financial institution and paid later.
If all the invoice is settled the following month, interest is not charged. Otherwise, interest rates are added to miss, making the debt significantly grow. This is the big difference from the debit cardwhere the amount immediately comes out of the account.
In addition, convenience is one of the great advantages of credit cards. They are accepted in practically everyoneallow flexibility in payment of purchases and include programs of rewards that translate into real savings.
Also add the Free Associate InsuranceS, which can go from protection in purchasing and warranty extension to coverage of medical expenses, cancellations or trips on travel.
As Doctor Finance in a statement sent to ZAP details, not all credit cards are equal. The market has several credit card options, adapted to different profiles.
The cards Classic They have lower limits and reduced or nonexistent annuities, being indicated for basic use.
Already the cards Gold ou Platinum They offer higher limits, additional benefits and insurance packages, but imply higher costs.
The cards with cashback return part of the amount spent, provided that the invoice is liquidated in its entirety; while cards with miles Allow to accumulate points for travel and associated services.
There are also solutions for studentswith reduced limits and symbolic annuities, store cards that give exclusive discounts but require extra attention to conditions, and cards virtual or prepaidespecially used in online purchases for adding security.
The dark side of these cards
Despite the benefits, the risks should not be ignored – warns the doctor finance.
The option for partial payment of invoices leads to high interestwhich can grow the debt quickly.
As there is no immediate impact on the account balance, it also becomes easier give in to impulse purchases, accumulating expenses without realizing the real dimension of the expense.
All this are added to high survey committees in ATM, Penalizations for delays or conversion fees on purchases abroadwhich weigh on the budget.
It is also important to highlight that all cards appear on the Banco de Portugal credit responsibilities map, which can make it difficult to approve new credits, namely the housing credit.
A Responsible use is the key To keep the credit card as an ally and not as a source of problems.
A full settlement of invoices is the best way to avoid charges With interest.
ATM surveys should be avoidedgiven the high cost.
Monitor spending by applying the bank It helps maintain control and quickly identify suspicious movements.
Define personal use limitsEven if available credit is superior, it is another way to prevent excesses.
Finally, Keep only the necessary cards contributes to simpler and more balanced management.
The credit card can be a powerful ally of financial management as long as it is used with discipline. The secret is to treat it as a convenience tool-not as a prolongation of income.
