How to finance purchases with a credit card without ruining

Summer is usually a season of many expenses. The holidays, the plans with friends and the return to the school usually exhaust the budget. To reach the end

How to finance purchases with a credit card without ruining

Summer is usually a season of many expenses. The holidays, the plans with friends and the return to the school usually exhaust the budget. To reach the end of the month and cover all the needs, many families choose to porfinance expenses with the credit card. The advantage of these products, compared to other financing alternatives, is that they allow a loan always available in the pocket, as explained by the financial product comparator HelpmyCash.com. And to this is added the flexibility in forms of payment. However, they also have their dangers. To benefit from these plastics and use them better this season there are some tips that can be useful.

HelpMyCash experts recommend using the credit card or any other financing method only at a timely manner, never recurrent, and for the essential. Credit cards are an expensive means of payment, so, in addition, it is not recommended to postpone large amounts with them if they will be needed many months to amortize 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 part of the total expenditure.

In addition, before using the card, you can check if it offers some type of discount or promotion. For example, OpenBank offers a varied catalog of promotions that change throughout the year. If you are customer of this bank online, 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.

However, some banks only allow you to enjoy certain promotions if you are postponed purchases, so it is not recommended to pay credit only to benefit from promotions, only if you really need, since interest will generally be higher than incentives.

Another point that should be taken into account when paying with the credit card is to choose the cheapest method to return the borrowed money. Paying at the end of month without interest does not imply any surchases. However, if you need to pay at several monthly payments, the key to saving is, as explained HelpMyCash sources, paying in a short term and setting high installments, as long as they can be assumed without problems. This is because the longer the debt lengthens, the more interest are paid.

Although at first glance, the idea of establishing very low installments can be attracted, the truth is that in the long term it will end up paying more and financing will be more expensive. To check how much money will cost to postpone a purchase, you can use the free credit card calculator that HelpMyCash offers.

Finance with a credit card does not always have to be more expensive. Wizink, for example, has launched two new cards with very economical financing conditions. Credit Lack Nowofrece The possibility of accessing a loan of up to 2,000 euros within the approved credit limit and with a TAE of 7.76%. When requesting it, this money will be received in the account in which the receipts of the card are domiciled and can be paid at 6, 12 or 24 months.

On the other hand, the Click Credit Card, also from Wizink, offers the possibility of paying purchases of up to 1,000 euros in three installments, without interest of any kind (0% TAE). This plastic is an alternative if the amount to be financed is 1,000 euros or less and provided that the means are available to return it within the indicated period.

To contract Wizink's cards there will be no need to change the bank and will not have to be paid maintenance or emission fees.

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 return money in many months or finance high amounts, it is advisable to resort to other cheaper financing options such as a personal loan or pre-founded.

Updated Date: 25 August 2021, 06:19

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