Credit cards are a form of financing purchases that require good management of consumption and adequate planning of use. The most common mistake is to believe that they are an extension of salary or additional income. On the contrary, they must be used in accordance with the correct financial planning to enjoy the benefits.
Before using a credit card, you must take into account what it will be used for and when the money used for financing must be returned, as well as the type of card suitable for each person and the conditions of responsible use.
Learn the following tips to help you become a master at using your first credit card. Here are 5 tips for getting your first credit card:
1. Plan your purchases and expenses
Part of using your first credit card responsibly involves knowing what you’re going to buy and when you’re going to buy it. If you do this regularly, you’ll find that taking advantage of the financing your card offers is very easy and you’ll never have any problems. If you keep this habit up for life, it will serve you well forever.
2. Always remember your credit line
Your line of credit is the amount of money the bank can lend you. You cannot make a purchase that exceeds the amount granted on your line of credit. Be careful not to get too close to it, as it will get to a point where it will be very difficult for you to meet your obligation to pay it back.
3. Be careful with your credit turnover
Credit rotation is nothing more than the possibility of using a credit repeatedly. It's very simple: in some loans, such as mortgages, the money is used to buy a house. When you finish paying off your house, the credit is no longer renewed and the deal is closed. In the case of credit cards, each time you pay off the entirety of your credit line, you can use it again, in whole or in part.
4. Never withdraw the amount from your card
Overdrafting your credit card means that you have used up all the money available on your credit line. Therefore, you cannot use it until you have paid it off. Overdrafts are almost always related to irresponsible use of the card, so if you have reached your limit, pay back the money you were lent so that you do not have a negative credit history or have your card blocked.
5. Always remember your deadline and payment date
Remember that to use your credit card responsibly, you must pay before the due date. Knowing when your billing date is will help you know what transactions will be made up until that point. So always be aware of this.
If you are an organized customer and plan your purchases, you can get up to 50 days of financing. You only need to buy the day after the deadline, as the cards are cut once a month and give you an extra 20 days to pay.