Finance News
During the holiday season, it is normal that consumers exaggerate when it comes to costs, either by the spirit of year-end, or by insufficient control of their funds. Part of the reason why costs are out of control lies in the language sometimes misunderstood statements of the credit card receipt.
Often, important information is printed with letters particularly small, with the intention that the consumer can not (and do) read their agreement, and not be aware of changes in their contract.
5 tips to follow
Now that the season of use and misuse of credit cards is just around the corner, consider these tips before you arm yourself with the “plastic” for purchases in the coming days:
Know your limits
At other times, the person who purchased with a credit card with limit exceeded passed through the embarrassing ordeal of seeing how he rejected the card. Currently, many card companies credit have chosen to take other paths, allowing consumers to exceed the limits and then face exorbitant fees and higher interest rates once they exceed the limit. Before using the card, your balance must know exactly how much you can spend before exceeding the limit, and avoid at all costs exceeded.
Pay on time
Sometimes the date you must pay your bill each month unchanged. While one month must be paid on day 10, the next could be the eighth day of next month. This can (and often happens) cause delays in payment and charges for tardiness. A late payment also allows the company to apply a penalty, which can be as high as 27 percent. The best way to avoid it is paying on time, and know when is the date you must pay each month.
Avoid cash advances
Particularly during the holiday season, a cash advance can be very attractive. Most of these advances involve the payment of a sum by way of asking for money, and a higher interest rate than that established by credit card, which is equivalent to that payment could get you out more expensive than think.
Check the charges
Verify all charges on your card, keeping receipts and making the appropriate check over what appears on the account. This accomplishes two purposes: first, you can detect any fraudulent charges, and the second, you can examine your spending habits, which may be healthy or not.
There is no “case” with a single card
Not all cards are equal, as some apply higher interest rates than others. Do some research of companies, their interest rates and covenants and politely ask your friends to recommend (or warn against) any specific company. Take the results of their research for your company to negotiate a new agreement, or move to another.