There are many reasons to make use of credit cards. The ability to carry a plastic card instead of a bunch of tickets is very convenient while considering the most obvious reason, which is none other than the fact that it is becoming more difficult to live in society today without records registered in the networks that control the use of credit. No doubt credit cards are necessary too, for example for: hotels, car rentals, making purchases from a catalog or via telephone. In some places it is necessary to have a credit card up to rent videos, not to mention how indispensable it is to have a good credit if we want to get a cash loan with reasonable interest, bound for the acquisition idea a car or a house. It is really important to have good credit when buying real estate so that you can get a better rate of interest. a credit cards also offer support or a sense of security because they are credited with the power to resolve situations emergencies such as unexpected illness, accidents or costly repairs or urgent implementation.
Unfortunately to coexist with these advantages there are also some disadvantages to it because they offer a sense of safety encourage individuals not to use personal savings to cover emergencies. a The proper use of credit who own it requires consideration of some key points: The credit purchases can be considerably more expensive due to interest and additional costs when the balances are not paid in a timely manner, while recognizing that Credit card holders are at risk of being exposed to scams and fraud if they are lost or copied the account number. Having a certain purchasing power can lead to the temptation of the overdraft created a difficult situation in the future, every time we go in unevenness in income-expenditure, the costs of shifting maturities not covered could seriously compromise the family economy associated conflicts that such situations usually entail.
The granting of credit is governed by what is generally known as the five Causes of good credit, they are: Character- Are you a person who pays his bills on time? Capital- Do you have sufficient income and / or equity to get. Affordability: Are you a stable person? Are your employment income and secure enough to guarantee payment of your debt? Collateral- Do you have assets or collateral to ensure the recovery of your debt? Conditions- Does the current market situation and economic governance have altered the government’s economic-financial balance to the point that the increase in interest rates would saw you unable to pay its debt as it was established? These are five basic principles that are easily verifiable by credit institutions, if a person has no credit history, should begin to demonstrate the qualities that would encourage potential creditors to grant credit you are requesting.
Maintaining a good image is essential to gain access to the undeniable benefits of the system, but it must be borne in mind that financial stability requires a serious and responsible behavior to be considered very seriously. Here some basic principles: capacity savings (spending less than income) plan investments, such as housing, education, to health, and avoid falling into the clutches of consumerism, especially in times of crisis is very important to separate the vital from the trivial.