Nowadays, having a credit card is a facility, but it is also a nightmare for many families. After all, if the correct card is chosen, making a conscious use of this credit, which could be a help to close, which makes a significant doubt little time.
The interest charged on Brazilian consumers who do not fully pay the credit card charge is a staggering 480% per year. That is not to play with that kind of credit, right?
Follow our article, learn a little more about the differences between card types, and know what you need to consider when choosing the best credit card for you!
Know the types of credit cards
Today, there are several types of cards on the market. Knowing your differences and benefits is the first step in choosing the best credit card for your profile.
- Institutional card: This is the card that banks usually offer to account holders who have just opened their accounts. Generally, they have credit and debit functions, and their limits are directly related to your account holder profile and account values.
- Prepaid Card: Ideal for those people who want more control over their financial life. Its operation is simple: just carry an amount on the card and spend, over a period, what has been credited. No scare at the end of the month!
- Co-branded card: These are partnerships between credit card brands (eg, Visa, Mastercard) and other brands. These cards generally have a higher annuity, but may also offer more advantages than those offered by banks.
Points to consider when choosing the best credit card
1. Know the issuing bank
If you plan to open an account with a bank or simply apply for a card from a bank where you are not an account holder, this is possible! Then look for the advantages and disadvantages it can offer you: fees, loyalty programs, interest and checking account age, for example, are indispensable points to be evaluated.
2. Choose your card banner
This is no longer a deciding factor when choosing your card, as the most well-known options (Visa, Mastercard, American Express, Elo, among others) are widely accepted in major networks. from all over the country. Remember, however, that the annuity value may change according to the flag you choose.
3. Define if you will need a national or international card
Before accepting that manager’s offer to buy an international card, consider whether you really need that card, or whether a national responds better to your purchase profile.
Tip: Only consider buying an international card, which usually has more expensive rates, if you travel a lot abroad or shop frequently outside the country. Some banks release their international function on their national card for a few days if you travel sometime or make a purchase.
4. Ask about the card’s annuity and interest rate
Banks are, by law, entitled to charge an annual fee to use the card, the so-called annuity. However, this may vary by financial institution, and / or with the card. So, please inquire before hiring the service so as not to be caught off guard within the first month (or year) of use.
In addition, it clarifies all points about the interest rates charged if the invoice is not paid (or the minimum payment). This interest may also be higher or lower according to the bank. So keep an eye out and choose the best card for you!
5. Know your card limit
The maximum amount that can be spent on your credit card is determined by the bank according to your economic profile and your monthly income. Confirm your limit with the financial institution before purchasing your card. If you think it is too high and this may be a temptation to spend, ask the bank to lower it.