Now there is no credit card except for infants. Banks issue them left and right, describing in detail the benefits of using them myfin.us . But do not flatter yourself, because credit cards are, first of all, a profitable tool for the bank, and the client needs to be very careful in using them so as not to get hooked on the “credit needle”. What are the catches and how to use a credit card correctly, we will figure it out in this article?

By the way, if you are a financially literate person, then you probably have your savings (deposits), The presence of this eliminates the need for any type of loan, including the need for a credit card as a kind of emergency reserve just in case. But if there are no savings yet, then you can use a credit card for peace of mind.

Eight rules for the correct use of a credit card in terms of your wallet:

1. The first and most important rule is "A credit card is far from the most profitable loan option." As a rule, credit card interest is much higher (sometimes even twice as much) than interest on consumer loans or cash loans, which require proof of income or collateral. If you need money, not in 5-10 minutes, then it makes sense to apply for a cash loan at a bank branch at a lower interest rate.

2. Before issuing a credit card, always choose the most favorable conditions. Call the banks, find out the conditions (monthly interest, grace period, insurance, etc.), ask friends for advice, and read reviews on the Internet. Making a credit card is not an urgent matter, so it’s better to immediately, as they say, “lay softer”. The ideal option is to apply for a credit card at the bank where you receive your salary. In this case, the percentage will be minimal, as the bank sees your income.

  3. Never carry a credit card with you! So that there is no temptation to use it for everyday purchases or momentary whims. A credit card is needed solely to cover expenses in case of unforeseen circumstances. More specifically, there are not so many such circumstances. -First, someone in the family got sick and needed money for treatment. -Second - you urgently need to buy something, for example, a birthday present. Thirdly, urgent repairs are needed in the house after any emergency. In general, only if you need the money now and no one can borrow it for you.

4. Try not to withdraw money from ATMs (pay by card in the store), as you will pay 3-4% of the withdrawal amount for cashing out. Also, in some banks, a grace period does not apply to the cashed amount, so interest will be accrued from the first day of using the money.

5. If you have already used a credit card, then pay off the debt to the maximum, and preferably all at once, from the very first salary. No need to stretch and pay minimum payments, because, as I noted at the beginning, a credit card is not the most profitable type of loan. By stretching your payments, you will be overpaying your money, money that could have been spent on a new blouse for your wife or candy for the kids.

6. Avoid late payments, as penalties can exceed even your monthly payment.

7. Try to constantly monitor the state of the balance on a credit card through Internet banking. It happens that, without paying a ruble, you will receive a fine of five hundred rubles at the end of the month for late or incomplete payment.

8. Don't keep your money on a credit card, even if it earns interest (like a deposit account). Often there is a monthly service fee on a credit card, which is charged when the credit limit is used or if there is a positive balance. Here are the top eight rules for successful credit card use. The ideal use case is for the most acute and urgent need to pay with a credit card in a store, and then, during the grace period, fully repay the debt as soon as possible. And be sure to check the balance on a credit card at a bank branch or in Internet banking. Take care of your money and manage it properly!