Updated Wednesday, August 25, 2021 – 12:00
Summer vacation time is often costly. For this reason, there are those who choose to finance that money enjoyed through the credit card, a product that has many advantages, but also its dangers.
One of the golden rules is to budget to see what to pay on credit.
Summer is usually a time of high spending. Vacations, plans with friends and going back to school tend to exhaust the budget. To make ends meet and meet all needs, many families choose tofinance expenses with the credit card. The advantage of these products, compared to other financing alternatives, is that they allow you to have a loan always available in your pocket, as explained by the financial product comparer HelpMyCash.com. And to this is added the flexibility in the forms of payment. Nevertheless, they also have their dangers. To benefit from these plastics and use them better this season there are some tips that can be useful.
Finance only specific and essential expenses
HelpMyCash experts recommend using the credit card or any other financing method only in a timely manner, never on a recurring basis, and for what is essential. Credit cards are an expensive means of payment, so, in addition, it is not recommended to defer large amounts with them if it will take many months to pay off the debt.
If you plan to spend a lot of money, it is important to make a budget, compare prices and decide if it is necessary to pay everything on credit or only a part of the total expense.
Also, before using the card, you can check if it offers any kind of discount or promotion. For instance,Openbank offers a varied catalog of promotions that change throughout the year. If you are a customer of this online bank, it is worth taking the time to review the offers. Many of these discounts only require paying with any of the cards offered by the entity, including debit cards.
However, some banks only allow you to enjoy certain promotions if purchases are postponed, so It is not advisable to pay credit only to benefit from promotions, only if it is really needed, since the interests will generally be higher than the incentives.
Choose the cheapest payment method
Another point that should be taken into account when paying with the credit card is to choose the most economical method to return the borrowed money. Paying at the end of the month without interest does not imply any extra cost. However, if you need to pay in several monthly installments, the key to saving is, according to sources from HelpMyCash, pay in a short time and set high fees, as long as they can be assumed without problems. This is because the longer the debt stretches, the more interest is paid.
Although at first glance the idea of establishing very low fees may attract us, the truth is that in the long term you will end up paying more and financing will be more expensive. To check how much money it will cost to postpone a purchase, you can use the free credit card calculator offered by HelpMyCash.
Check that there is no cheaper way to finance
Financing with a credit card doesn’t always have to be more expensive. WiZink, for example, has launched two new cards with very cheap financing conditions. Thecredit card nowoffers the possibility of accessing a loan of up to 2,000 euros within the approved credit limit and with an APR of 7.76%. Upon request, this money will be received in the account in which the card receipts are domiciled and can be paid in 6, 12 or 24 months.
On the other hand, credit card Click, also from WiZink, offers the possibility of paying for purchases of up to 1,000 euros in three installments, without interest of any kind (0% APR). This plastic is an alternative if the amount to be financed is 1,000 euros or less and provided that you have the means to return it within the indicated period.
To contract WiZink cards there will be no need to change banks and no maintenance or issuance fees will have to be paid.
In any case, not all cards offer these advantages to postpone purchases and, in general, they are an expensive financing product. So if you need to pay back the money in many months or finance large amounts, it is advisable to resort to other cheaper financing options such as a personal loan or a pre-granted loan.
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