10 tips for using your credit card consciously

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10 tips for using your credit card consciously

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To have or not to have a credit card, that is the question. There are people who are strictly against it and prefer to pay everything in debit, while others bet on the credit card for any purchase, dividing even that blouse into several installments.

It is a fact that, when used consciously, it is possible to have a healthy relationship with the credit card. However, you must follow some rules.

Thinking about it, we list some tips for you to be able to use your credit card so that spending does not get out of control:

  1. Ensure your planning on time;
  2. Track your statement frequently;
  3. Choose a credit card that does not cover annual fees;
  4. Have only one credit card;
  5. Avoid as much as possible paying only part of the installment;
  6. Keep the limit lower than the bank allows;
  7. Use automatic debit;
  8. Buy as few installments as possible;
  9. Do not lend your card;
  10. Look for other alternatives.

Check now, in detail, how to put each of these tips into practice!

10 tips for using your credit card

Due to the facilities offered by the credit card, many people use it impulsively, without taking any care with their own finances.

Having control over all purchases made on the card is undoubtedly the main difficulty for anyone who wants to save money. Therefore, to assist you in this task, we have separated the main tips for using your credit card in the best way:

1. Ensure your planning is up to date

First of all, make sure your financial planning is up to date.

>>>In that article, we explain step by step a way without a lot of headaches to organize your personal finances and get the year off to a good start. <<

No problem if you have already started the year and have not yet made a plan, what matters is to start some time!

But after all, do you know why it will be important to have this minimal organization? Because in this way it is possible to monitor your large expenses with, for example, food, and see if what you had planned is in line with what you have observed in your statement.

2. Track your statement frequently

As we said earlier, it is important to keep track of your card statement frequently, so you don't have to worry about the amount of the invoice at the end of the month. However, this is not the only reason why this monitoring is important.

There is also the possibility of an undue charge for something that you did not purchase or worse, you discover that your card has been cloned. Imagine the damage if you let it go unnoticed?

Tracking your statement frequently ensures that you can more easily remember if that purchase was really yours (imagine leaving it to see everything only at the end of the month and having no idea what each purchase is about!).

3. Choose a credit card that does not cover annual fees

Nowadays, we have many possibilities for banks that offer cards with no annual fee, mainly those digital banks.

So, opt for one of these financial institutions that can offer good services, without charging you a fee for it!

4. Have only one credit card

Our energy is very limited. The portion we dedicate to financial management is even more limited. Each new variable that we put into the equation consumes our resources (financial and emotional).

So it is ideal to have only one credit card. So you centralize everything and make your life easier, not having to worry about more than one invoice (which can be complicated if you are not aware of the total value of invoices added, it is easy to lose control when things are not centralized) and with money in different accounts.

5. Avoid as much as possible paying only part of the installment

Sometimes it is tempting to pay the minimum card bill, initially this may seem like a good idea, but it can end up becoming a snowball. So, you have to be very careful!

Always choose to pay the full amount, otherwise you will have to pay the amount incurring one of the highest interest rates on the market, or you will end up needing to make a payment. loan to pay the debt<span style=”font-weight: 400;”>.

6. Keep the limit lower than the bank allows

One of the main tips for using your credit card in a healthy way is to create your own credit limit. This is important, because the more you use your card, the higher the limit made available by the bank.

Often your bank may offer a very high limit, which is even higher than the salary you earn. Resist the temptation to accept this new limit.

This, usually, is the first step for you to start spending more than you need, deregulating all your planning, and it can also lead to contracting debts. It is always preferable to keep the limit

7. Use automatic debit

We all have many bills to pay every month. The problem is that if you pay your credit card late, the interest on arrears is very high.

Therefore, pay attention to the due date and try to use automatic debit to pay the invoice.

8. Buy as few installments as possible

Spending a purchase on the card still means spending money, despite looking like something with so little friction. Therefore, if you are going to pay in installments, try to install the installments as little as possible (always paying attention if installments will incur interest), so that you do not get lost in your planning.

In fact, if you install in installments, ensure that you already add the next installments in the next months of planning. For example, if you buy a £ 200 sneaker and divide it into 4 interest-free installments, you will pay £ 50 now, but you will have to prepare to pay £ 50 per month for the next 3 months, so add that to your spending control.

9. Don't lend your card

We know how to keep the line at the time of spending is not an easy task, so it is normal for your family and friends to also have this problem and borrow your card.

Well, it is important for you to know that this is very dangerous, because, even if the person intends to pay, it may be that they cannot. So lending the card and letting someone buy on your behalf can be a trap.

10. Look for other alternatives

We often use a credit card for emergencies, as it is a quick and practical option. However, there are other alternatives for you to be able to pay off your debts without having to bet on your credit card.

THE HR Consultants UKy style=”font-weight: 400;”> is a financial services platform that can help you in times of crisis.

Through it, employees of companies that have access to the benefit, are able to withdraw the salary of the days they have worked, at any time, before the pay day. Instantly, the person requesting the transfer will have the money in their bank account. It is worth mentioning that he has no interest and does not compromise his future income.

Therefore, it can be a great ally at the time of unexpected expenses, without having to make installments on your credit card.

Best of all, HR Consultants UKy is available to all CLT employees and does not depend on credit analysis.

Now that you know the main tips for using your credit card, it's time to put them into practice! Through them, you will be able to have more control when using the card and, thus, you can keep your finances always positive!

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