8 Credit Card Mistakes And Traps To Avoid

8 Credit Card Mistakes And Traps To Avoid
8 Credit Card Mistakes And Traps To Avoid

Introduction Of 8 Credit Card Mistakes And Traps To Avoid

8 Credit Card Mistakes And Traps To Avoid. How to use cards and the first video in which we talked about the strategy on how to use them to create wealth, something many people who misinterpreted the point of wealth in particular and is that with wealth I do not simply mean the points that credit cards give credit to the benefits one.

How To Use Credit Cards And Not Falling Into The Traps

That another trip or one that another access to sales trips and much less I was referring to the access that can be had to an excellent score. e credit knowing how to use credit cards and not falling into the traps that we are going to see what they are to obtain better products to finance an investment that can make it much more profitable than.

What an interest rate can cost so in In that order of ideas, the first mistake in which you should avoid falling is for something with a credit card that you could not pay in cash at the same moment or with the money you have in your bank account but to think that the credit card is a means of long-term financing by which you are going to pay in installments either.

A television or some furniture because at this moment you do not have money which in other words means going into debt to acquire an expense a liability to acquire another liability is not how to borrow money to invest it in something that will return and will allow you to earn much more than what you pay the interest so for this type of expenses it ideally, people planned very well.

The Installments With The Same Credit Card

What are the amounts of the number of installments that it is going to take to pay it, how they can rather save to avoid having to pay interest if they need it is the product if they cannot pay it at this time that guarantees that they can pay it later and what type of risk are they incurring when thinking about paying something in installments and hand in hand with this error?

This trap in which people fall is precisely always paying the minimum installment because the truth is that paying the installment The minimum amount comes from advancing as little as possible to the des, especially in the first installments where sometimes more interest is paid than even capital, so almost always or always preferably if.

We have a debt and we have to defer the various installments, we have to pay much more above what the bank is charging us as a minimum fee, otherwise, if we cannot and it is out Regarding our financial capacities, we must ask ourselves why we take on this debt if new is within our possibilities and another mistake of the hand with.

Which we already mentioned is to pay the installments with the same credit card with which it was made The purchase, let me explain, the banks, in general, if you have a credit card with a ship and want to acquire the debt of the credit card of another bank, they offer you a lower rate with which you have cheaper installments in interest and possibly to gas much faster and you finish paying off.

A Little To Improve The Credit History

The debt is less time so acquire debt with a card and pay them in installments even as we saw in the previous two points simply because it is a way to spend more on interest and we could save by looking for alternatives directly with the banks what happens is that the banks are not going to look for us to offer the things we have to be the ones.

Let’s look for those opportunities and it usually works better between two different banks very well for those who understand the strategy that I talked about in the first video that involves never paying more interest in life, which is why a card is not a means of indebtedness like many said there they simply did not pay attention or did not because there are people who believe the myth that in reality, you have to pay a little interest, even if it is to leave 510 dollars or the equivalent.

Because at the end of the month to pay so that that helps a little to improve the credit history and that could not be more false is a lie because the credit score I do not know how much you pay in interest to the bank has nothing to do with what matters to the banks for the Risk entities, basically entities such as data, credit, and experience, and Transunion.

What I Always Do With My Credit Cards

They verify that you are good and fulfilled, paying independently. Regardless of the moment you pay and you pay before it is billed in interest, you are meeting your debt and that is personally what I always do with my credit cards, I make a purchase and at the maximum 34 five days depending on the time in which it takes time to reflect.

The charge and open the possibility of paying automatically pay what I have their other people sign up to the automatic debit for the total monthly payment to me it seems to me that personally it is a mistake is to wait for the bank statement to arrive with the report of what purchases were made and see what is the minimum payment and the total payment and this seems to be a serious error.

Because we do not know if they made us unauthorized charges we do not realize it in real-time unlike when we have an application that automatically notifies us instantly of a purchase or an automatic payment, for example, if it is an online payment for something that we are doing. you and that we know in real-time if this charge or charge is authorized or not and we can call our bank in case it is not.

Which Cards Certain Categories Of Expenses

This will facilitate the claim even more if it is so and together with this I use an application in which I wrote down what my expenses are and what my income is, from which cards certain categories of expenses come and others where I know exactly what my balances are for each of my cards at the time of corroborating with the information.

What is in the bank? I am if there is any discrepancy or not and I am also clear at that time what my available balance is and it has to be exactly what I say in the application of my phone so this is an additional control that many people simply It is surprising that some people do not realize that there are micro fraud charges that sometimes can simply be charges of 235 dollars and as they almost do not affect.

Let’s say, the total of the debt to pay especially if they are paid and as there are interest and handling fees and others people do not even realize that they are being scammed another mistake in my opinion is not knowing or taking advantage of all the benefits and rewards that credit cards have the truth is that we pay a lot of expenses to the banks banks earn money for each transaction.

That for example, we make in the supermarket with a credit card even if we pay in a single installment because the bank charges the supermarket for the transaction is more the The bank itself has to pay the franchisee, the transaction is notified closer to American Express because that is precisely what they live on and with that they can justify their global infrastructure. in hotels in prizes in whatever you can let’s say take advantage of this financial resource not use them basic It is only to lose them and this we speak in financial terms, even if they are few, they are hundreds of dollars a year 100 200 dollars.