Is being young and wanting a credit card crazy? Something that is not recommended? The worst decision in the midst of your twenties? Don’t worry, it’s not really a black or white matter.
The truth is that credit cards are a fairly attractive financial instrument for everyone, especially because they bring benefits that help us get even more out of them and achieve our goals. But it is also true that it is necessary to learn to manage them in order to use them well, because just as they bring us many joys, they can also be the cause of a great nightmare, especially for young people.
Being in your twenties and starting work is synonymous with independence, also starting to pay your expenses, deciding about your money, among other factors that young people start to live. And it also means that you can now buy a credit card and decide how you will use it.
If you are thinking that plastics are from the devil and you are a young man, you should not have them because they will lead you down the path of evil, calm down! We invite you to know what these instruments can bring to your life and to decide for yourself whether or not they are worth it.
1. It offers you benefits
First of all, plastics bring benefits that can be exploited. These will depend on the type of card you choose. There are those that allow you to accumulate discounts in trendy bars and restaurants, these are designed mainly for young people, as they give them discounts in the places they usually frequent.
There are also cards designed for travelers, which allow them to accumulate miles, access to VIP lounges at airports, which include travel insurance, etc. Thus, each profile can find a card that suits their needs and the important thing is to choose the one that suits them best.
2. Free things
Free-free? Without paying anything for them? So is! Many of the cards allow you to accumulate points that can later be redeemed by consumer vouchers in supermarkets or in catalogs with different products such as perfumes, bags, travel accessories, household items, desktop accessories, among others.
3. Access to better deals
By making good use of plastics, in the following months offers will begin to arrive not only to improve plastics with lower interest rates or cards with a more exclusive profile, but also offers consumer loans with preferential interest rates or convenient deals. This is because it shows that you are a good customer.
4. Financial institutions know you
To have access to financial instruments it is necessary to develop a good credit history. If in the future you want to apply for a mortgage or an auto loan, it will be important that there are a certain history and record of your behavior as a client. Credit cards help you show yourself to the world, and appear on the map of financial institutions, especially if you are a customer who has proven not to pose a risk to the bank.
What if they become a risk …?
Credit cards start to turn negative when you start to lose control. If you are a person who cannot control how you spend, it is better to try to be careful, step by step, since credit cards can be very tempting.
What can you do? First of all, don’t think of your card as additional money. Keep in mind that it is only borrowed money, which you must pay in a month. On the other hand, try not to abuse the fees, since you will end up paying additional money as interest. Here the important thing is to know that this financing is recommended when it comes to a large purchase, but even in these circumstances you must select a moderate number of installments.
Another point that may be convenient is to have a limit on the use of your line of credit. In order for you to continue being well seen by financial institutions, try not to use more than 30% or 40% of your line monthly. This shows that the card is an accessory and not something you rely on to cover your expenses month after month.
If staying afloat with the card is something that costs you, the recommendation is that you be a little firmer and mark a maximum number of times in which you can use it. Also, limit yourself to just one card until you can say you’re a master of it.