How to avoid being blinded by cards
Posted: Tue Jan 07, 2025 5:11 am
Promotions offered by banks are tempting, but it's best to find out if they are worth it.
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To retain their customers, financial institutions often offer a series of promotions and benefits that are only activated by the use of credit cards.
Although they may seem like real savings opportunities, analyze them carefully before using them, as they could lead you to take out loans you don't need, warns personal finance expert Juan Carlos Ocampo.
BE CAREFUL WITH THE REAL COST According to the former head of Products and User Services of the Superintendency of Banking, Insurance and AFP ( SBS ), Giovanna Prialé, the correct use of the card is a key objective so that consumers do not end up more indebted than they want.
"It is essential that, when faced with an offer, the consumer asks how much the APR (Annual Effective Cost Rate) is, how much the monthly payment will be and for how long," he notes.
If, for example, you have a card that you pay in installments, multiply what you would pay by the number of months you would pay it, and you will know turkey number screening the total amount you would have to pay.
What you get will help you compare and verify whether the discount offered really means savings for you, says Prialé.
But if your credit card is revolving, it's vital to ask about the APR and compare whether it's cheaper to use a department store card instead of a traditional card, he says.
DO YOU NEED THEM? Ocampo, meanwhile, suggests not being dazzled by the supposed added value of discounts so as not to end up with debts on three or four cards.
"Make a list of what you really need and, when these promotions appear, evaluate whether any of them are of use to you," he says.
Some banks offer discount vouchers at restaurants that require a minimum spending of S/.100 to redeem them. "Is it worth it? How much will it cost me to get there? Does it fit into my frequent spending habits?" he asks.
Image
To retain their customers, financial institutions often offer a series of promotions and benefits that are only activated by the use of credit cards.
Although they may seem like real savings opportunities, analyze them carefully before using them, as they could lead you to take out loans you don't need, warns personal finance expert Juan Carlos Ocampo.
BE CAREFUL WITH THE REAL COST According to the former head of Products and User Services of the Superintendency of Banking, Insurance and AFP ( SBS ), Giovanna Prialé, the correct use of the card is a key objective so that consumers do not end up more indebted than they want.
"It is essential that, when faced with an offer, the consumer asks how much the APR (Annual Effective Cost Rate) is, how much the monthly payment will be and for how long," he notes.
If, for example, you have a card that you pay in installments, multiply what you would pay by the number of months you would pay it, and you will know turkey number screening the total amount you would have to pay.
What you get will help you compare and verify whether the discount offered really means savings for you, says Prialé.
But if your credit card is revolving, it's vital to ask about the APR and compare whether it's cheaper to use a department store card instead of a traditional card, he says.
DO YOU NEED THEM? Ocampo, meanwhile, suggests not being dazzled by the supposed added value of discounts so as not to end up with debts on three or four cards.
"Make a list of what you really need and, when these promotions appear, evaluate whether any of them are of use to you," he says.
Some banks offer discount vouchers at restaurants that require a minimum spending of S/.100 to redeem them. "Is it worth it? How much will it cost me to get there? Does it fit into my frequent spending habits?" he asks.