Discover in this article all the details on how to correctly handle your credit card, so that you can adopt good practices and make the most of this tool that is at your disposal. Finding out about the opportunities available in the market will also ensure that you can take advantage of all its benefits.
To get the most out of any financial product or service, you need to know what it is and how it works. The same is true of how a credit card is used. The use of this payment method is so widespread among the Brazilian population that anyone would think they know how to use it, but the truth is that many use them incorrectly and it is common for many to think that they are extensions of their salary and end up falling into problems of over-indebtedness.
Ideally, everyone should learn how to use a credit card before purchasing one. However, if you already have a card, you still have time to learn how it works properly and can have the best experience with a bank card.
How do you pay with a credit card?
One of the secrets to using this payment method is knowing exactly how to pay with a credit card, as it is essential for your financial health. To do this, you need to know some basic information about your card, which is included in your account statement so that you can review it at any time.
- Payment deadline. As the name suggests, this is the last day on which you can pay the money you owe. To avoid incurring interest, you must pay not only the full amount, but before this date;
- Minimum payment. This refers to the minimum amount that the bank requires to maintain your current credit line. However, this does not mean that the monthly payment should be this amount, as interest will be charged and you will end up paying more money and it will take longer to finish paying it off. Always try to make a payment that exceeds the minimum payment, preferably equal to or higher to avoid generating interest;
- Payment to avoid interest. This is the sum of everything you spent during the month and accumulated as debt up until the closing date. Ideally, you can cover this amount in full to avoid paying interest;
- Closing date. Specify the last day your bank recorded purchases for a month. This date does not follow calendar months, so if the closing date is the 10th of each month, the account statement will record expenses incurred up to that date and expenses from the 11th will be charged until the 10th of the next month;
- Available credit line. This is the money that you can still use from the credit limit that the card has. As the account is paid off, you will be able to have the money included in the credit line.
- Your card balance. This specifically shows the total amount of your debt after any expenses incurred.
Can you get money with a credit card?
Yes, you can withdraw money from a credit card, but it is a service that will be available depending on each financial institution and some requirements must be met to contract it.
It is recommended that you use this credit card withdrawal as little as possible, or only in cases of extreme necessity, as this amount withdrawn may end up affecting your financial planning and may result in interest on the withdrawal amount.