The use of Credit cards to make payments, however, there is some concern among some people due to the perception that this financial product can lead to perpetual debt.
The National Commission for the Protection and Defense of Users of Financial Services (driving) has revealed that the responsible use of credit cards can provide multiple benefits to users, according to the body in charge of the protection and defense of users of financial services.
What are the advantages of paying with credit cards?
Credit cards are a financial tool with many benefits.
- Flexible payment options
By using a credit card, you have the possibility of financing your purchases for a period of up to 50 days. However, it is crucial to understand that this tool should not be seen as an extension of your income, as you will ultimately be responsible for paying for everything you consume using the card.
Another advantage offered by this financial product is the versatility of payment options. Some banks have established agreements with commercial establishments to allow their clients to make purchases in installments without interest.
- Generation of credit history
When you make proper use of a credit card, you have the opportunity to build a strong credit history, which can give you access to bigger and better credit options in the future.
- Security in your transactions
One of the main advantages of using credit cards for your purchases is that many financial institutions provide additional protection, which means refunds in the event of theft or accidental damage to an eligible purchase that must be paid in full.
In addition, certain credit cards grant warranty extensions on products purchased, which means that if the item fails after the manufacturer’s warranty has expired, the credit card may provide coverage.
- Obtaining benefits by accumulation
By using a credit card on a regular basis, you have the opportunity to accumulate benefits or advantages according to the associated loyalty program. These benefits may include discounts, points, or miles that can be redeemed for various rewards, such as products, services, experiences, or even cash. It’s a way to earn additional rewards for making responsible use of your credit card.
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- Additional protection with your credit card insurance
One of the advantages of having a credit card is the insurance coverage it offers. These insurances may vary depending on the financial institution and the card you have, but generally include protection against fraud, theft or loss of the card, travel accident insurance, purchase protection insurance and emergency assistance. These insurances provide an additional layer of security and peace of mind when using your credit card in various situations.
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