How to use a credit card properly?

“Before making a credit card, evaluate the feasibility of such a decision: Understand the use of debt to avoid unnecessary costs. The general rules for using credit are simple and versatile, but it is very important to study the details of a particular product. Choose a long, grace period. It is he who makes the credit card profitable. The longer the grace period, the more you can buy for the funds raised and the easier it will be […]”, – WRITE: Businessua.com.ua

Before making a credit card, evaluate the feasibility of such a decision: Understand the use of debt to avoid unnecessary costs. The general rules for using credit are simple and versatile, but it is very important to study the details of a particular product.

Choose a long, grace period. It is he who makes the credit card profitable. The longer the grace period, the more you can buy for raised funds and the easier it will be to pay off the debt. For example, you can design a credit card with a preferential period for more than 60 days on Unexbank. If you return to the account used by the end of this term, the interest will not be accrued. This way you can use credit funds for free.

Specify the cost of each operation. Check in the loan agreement the amount of the commission to withdraw cash, online payment, money transfer. Depending on the conditions approved by the credit program, some transactions may not be profitable, so it is best to avoid or choose a card immediately.

Swim out more for a minimum payment. If you do not have a grace period or it is very short, the bank will start calculating interest from the first hryvnia after its completion and will require a minimum, monthly payment. To close the debt faster, pay more for a minimum and use the free period again.

Do not use a credit card as a current account. Do not limit yourself to the minimum payment and do not pay this card for each purchase. So you can quickly go beyond the benefit and start accumulating debt. It is very difficult to track the movement of funds under such conditions. Take a credit card as a personal reserve fund and attract only in case of real need. And then carefully monitor the time of refund.

Evaluate your capabilities. A large limit credit is undoubtedly convenient, but it should not be admired. Although with favorable conditions, it is still a loan that you need to repay your own funds. In order not to create a financial deficit during the credit deadline, plan your budget in advance, focusing on it on the amount that can be given without tension in favor of repayment of the credit.

Follow the dates and movement of funds so that you do not miss the date of the grace period, be sure to install a bank mobile application and turn on the system reminders. Constant access to your account will help you not miss the end of the grace period and avoid unnecessary interest.

No votes yet.

Please wait …