Credit cards help us build our credit history. And it is that if they are used responsibly, they will allow us to have a good credit score that facilitates us access to better loans and credits, in the future. However, when we use credit cards We usually pay not only what we consume with them, but also the bank’s interest, despite the above, did you know that you can avoid paying interest with your cards? Here we tell you how.
Pay everything in one installment
We can get around the interest and fees on a credit card, and take advantage of its benefits if we cancel everything we consume with it in a single installment. And it is that when we buy everything at a quota or “direct” as the cashiers of the stores ask us, this amount will appear as “total payment” at the end of your billing cycle.
For this to work and interest is not charged, you must meet the total payment for the month (according to your account statement) and never leave for the “Minimum payment”. If you buy everything in one installment and when you pay the monthly payment you only pay the minimum amount, the bank will understand that you have decided split your debtConsequently, you will divide your debt in 36 months plus the interest it generates.
Have only one credit card
That way you will always be clear about the amount you are spending and you will be able to deal with the payment of everything in a single installment, as we have noted in the previous point. It is important that, to avoid spending the amount you can pay each month, you always keep track of your movements. For that you can download the application of the financial institution of which you are a client.
Never miss your payment date
It is useless if you put everything to pay in one installment if you have the money and you miss the payment date. Delays generate interest that adds up each day that you delay in paying off the debt.
Why have a credit card if I will still pay it all in one installment?
Doing this will help you build a good credit history. This way the credit bureaus will know whether or not you are a good payer. This will allow you to gradually be offered increase your credit line or be a candidate for higher loans. In addition to the above, credit cards usually have rewards programs for their affiliates, whether it be a points system, miles, discounts, etc. with which you can get many additional benefits.