What to consider when choosing a credit card

With so many options on the market, you may end up getting a little confused and not know which points to take into consideration when choosing your card.

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The financial market is getting wider every day, and with the popularization of digital banks, many more options have been added to the credit catalog, causing many consumers to become confused when choosing a card. There are numerous benefits and payment conditions that can be very similar between institutions.

Today we will show you which points are important to consider when choosing your credit card. Even though you have countless options, you can't just choose anyone. The card can often have very high interest rates and payment conditions that do not suit your budget.

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Choose the option above and you will be redirected to content on our blog, where we show some benefits of the Banco Neon current account.

Consider these questions when choosing your credit card

First of all, it is important to know the maximum amount of your income that you want to commit to paying your invoice. This will help you understand the limit that fits your finances and even help you save, setting a ceiling for your monthly expenses.

There is no point in getting a card with very high limits if in the future you are unable to pay the bill in full and end up in financial trouble. Understand that purchasing power is not about extremely high limits, but about tangible limits that you can pay off without strain.

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Check out the benefits

First of all, see what benefits your chosen card is capable of providing you. For example, if you travel frequently, choose a card aimed at accumulating airline miles, or if you love shopping at a certain store, choose a card that has this store as a partner and generates more points.

In the long term, these scores can generate discounts that will make all the difference in your pocket. Furthermore, many cards offer discounts on vehicle repairs, cashbacks on various purchases and many others as benefits, which will make a significant difference when it comes to saving your money.

Understand interest

Even though the finance company offers you high limits, first try to understand the interest dynamics of this card. If by any chance you are late for a day, what percentage will you be charged? Placing these questions on the scale will make all the difference when it comes to paying your bill.

Many cards offer low limits and absurd interest rates, which end up making it impossible for the customer to continue with the financial product. There is a new interest rate dynamic in the market, but it is important that before applying, you read on the institution's official website how interest and credit card charges work.

Value for security

Having a credit card that values your security is essential nowadays, where internet crimes and fraud using third-party data have become common. Many cards have a security system, which allows you, the user, to stay safe and not have your data stolen.

Choose cards that notify you of all your purchases via SMS and update your expenses instantly in the app. This ensures that you immediately notice if a purchase was not made by you, helping you recover your spent limit as quickly as possible.

Understand payment policies

It is extremely important that you understand the payment dynamics of the credit card you wish to apply for. Find out when interest is included, what the payment dates are, how the minimum payment works and other details that are important when paying your bill.

Understanding how it works is essential to avoid possible interest and extra charges that may appear in different situations. Don't count on chance and avoid surprises when paying your credit card, try to understand the dynamics before even requesting and avoid mental exhaustion.

Know your credit card first

Understanding your financial product means, first of all, ensuring your safety and also preventing unfair situations from happening to you. Understand your rights and how your product works to ensure that your experience will be satisfactory and worthwhile.

If you already have a credit card, go to the official website and read all the tabs to better understand how it works and ensure that you are making the most of the benefits that your credit card can provide you. Have you already chosen your credit card?

Common questions:

What are the benefits of using a credit card?

The benefits of a credit card include convenience when shopping, the ability to defer payment for purchases until the next billing cycle, building credit when used responsibly, fraud protection, and the ability to earn rewards such as airline miles , cashback or loyalty points.

How can a credit card help me build my credit?

Using a credit card responsibly, making timely payments and keeping balances low against your credit limit can help you build a solid credit history. This can increase your credit score over time, which is important for obtaining future loans with favorable interest rates.

What protections does a credit card offer against fraud?

Credit cards generally offer robust fraud protections, including monitoring for suspicious activity, limiting liability for unauthorized transactions, and the ability to dispute fraudulent charges. Additionally, many credit card issuers offer additional security guarantees, such as identity theft insurance.

How do credit card rewards programs work?

Credit card rewards programs allow cardholders to accumulate points, miles or cashback on each qualifying purchase. These rewards can be redeemed in a variety of ways, such as free travel, merchandise discounts, statement credits, or even charitable donations, depending on the card's specific program.

What are the additional benefits offered by some premium credit cards?

Premium credit cards often offer a wide range of additional benefits, such as travel insurance, airport lounge access, ride-hailing fee reimbursement, hotel and restaurant credits, concierge assistance, and more. These benefits are designed to provide greater value to cardholders willing to pay higher annual fees.

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