In Peru, 40% of the banked Peruvian population uses a credit card as their main means of payment. These are tips to save if you use one.
Credit cards remain the most popular payment option in the country. According to the Superintendence of Banking and Insurance of Peru (SBS), only in the last year about 8 million cards were reported in the financial system.
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For José Carlos Kohagura, academic coordinator of Banking Business Administration at the Certus Institute, as it is a frequent payment method, it is necessary to put into practice some recommendations to correctly manage our personal finances.
“We know that around 40% of the banked Peruvian population uses this financial product as their main means of payment. The credit card must mean a great responsibility when using it, we must be aware of the expenses that are going to be made, since this payment method would allow us to save if it was put to good use, “says Kohagura.
The Certus specialist reveals that in Peru only 28% of people have financial education. In this sense and regarding World Savings Day (October 30), José Carlos Kohagura shares six tips to learn how to save using a credit card:
1. Avoid making purchases in installments
It is recommended to pay the total amount of the purchases “directly”, without going to installments. This will avoid an additional charge for interest and will allow you to save during the month.
2. Check and compare the TCEA (Annual Effective Cost Rate) of the card
Knowing the payment interest rate offered by a bank is essential if you plan to use your credit card. It is necessary that you know the amount that banks charge you because it will help you manage your finances properly.
3. Do not make use of the cash provision
Some cards give you the facility to have cash as part of the line of credit. It is important that you take into account that, when making use of this amount, the interest is usually very high and you could pay twice the money requested.
4. Pay with cards that give you points
Some credit cards give you points or credits for each time you use them, which you can use later in affiliated establishments. In addition, it is convenient to previously check the additional plans or benefits offered by the card for good payers.
5. Avoid payment of membership
Some customers are unaware that banks charge a commission for the possession of credit cards called “membership.” Such a payment can usually be avoided simply by using this financial instrument at least once a month or, on occasion, by making minimum purchases.
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6. Don’t overbuy
The credit card should be used in emergency situations or only in exceptional cases such as long-term purchases, depending on the needs. According to the Association of Banks of Peru (ASBANC), a user can identify if he is making excessive use of a credit card if he is spending almost 30% of his line.
What else should be taken into account?
Finally, José Kohagura urges the population to use credit cards responsibly and points out the importance of having a saving culture.
“It is convenient to prioritize a monthly percentage of our salary and reserve it for any eventuality or emergency that arises. At Certus we are committed to promoting inclusion and financial education throughout our careers”, concluded the teacher.
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