10 Tips of Credit Cards
The advantages of using credit cards when shopping are many. However, to get the most use of all their profits and not get nasty surprises, you should bear in mind the following tips:
1. Pay attention to notices from your credit card company. As time passed, it may happen that have changed their interest rates, and is also common to decrease, increase or eliminate the number of shares with no interest financing on some products you purchase to pay.
2. Make a quick analysis of your financial possibilities before making a purchase with a credit card! Especially if you’re on vacation! Be aware of your limitations and concerns future savings to pay the balance of the month.
3. Check the summary of account, because banks and credit institutions sometimes make mistakes that are reflected in the summaries of payment do not want to pay for something that does not already purchased or to pay off!
4. Controls the validity of your credit card, with the aim that we will not reject in any store and spend an embarrassing moment.
5. Avoid using many credit cards and not lose control of the expenses that you incur.
6. The frequency and value of purchases that are making your children or people you trust who have an extension of your card Avoid unpleasant surprises!
7. Analyzes consciousness if the services offered by the bank or financial institution, via your card is truly necessary, such as travel accident insurance or medical care.
8. Keep your card and your PIN number in a safe place, these are the pillars on issues relating to credit cards and security.
9. Prevent theft of your identity when you shop online, for example, make sure that the website will offer transactions on secure servers. Taking into account this situation, prevent others from gaining access to your credit card number or password.
10. Compare the interest of your credit cards and assesses the possibility of canceling those with high interest, even if they offer attractive rewards program! These rewards are never compared with the interest that you apply!
How to Know if Interest Rates Will Rise or Down
Intuitively, many people know that if interest rates are low is not the time saving, and if interest rates are high is not the time to invest (at least borrow). Therefore, people are always still to read the newspaper, listen to the news on television and listen to renowned economists to find out their views about the future of interest rates.
I’m going to give you a tip that I gave in the Master of Finance, this tip is not a theory, which involves 100% accurate in practice but it does in many cases.
Turn on the TV or buy the newspaper and see advertisements banks. If you see excessive ads promoting credit banks with fixed rates of interest, then interest rates will go down or will remain low. On the other hand, if you see excessive ads promoting savings banks for a fixed term, then surely the interest rates will rise or will remain high.
What is the reason for this?
Assume that the borrowing rates of interest (savings) are 8%, and banks estimate that will rise to 10%, then they will promote savings with a fixed rate of approximately 9%. With this, the top rates to 10%, there’s a lot of customers with their savings “tied” to 9%. That is, you are charging less to customers to keep their savings.
That differential of 10% – 9% = 1%, as banks gain with this strategy.
On the other hand, if the lending rates of interest (loans) are at 20% and the banks consider going down to 18%, then they will promote credit and term fixed rates approaching 19%. So, when rates drop to 18% will be a lot of customers with their claims “tied” to 19%, ie, customers will pay more expensive your credit value.
This differential is, of course, the banks earn.
