Not Just Any Formula, Here’s How to Use Credit Cards Wisely and Exactly

Credit cards are one of the favorite payment tools for some people. Because, many facilities are obtained from the use of credit cards. For example discounts and low installment facilities.

But despite having a myriad of facilities, credit cards must be used wisely. The problem is that we can fall into a deep debt gap. Even more fatal, we can experience total bankruptcy so that the family’s financial condition is in disarray.

Therefore, we must ensure that we understand the formula of using the right credit card before applying for a credit card. The following do’s and dont’s are recommended when using a credit card:

Set the budget

Set the budget

The monthly budget must be available so we have a benchmark for securing finance. For example income of USD 10 million. Set aside USD 4 million to save. The remaining USD 6 million can be used for shopping, including by using a credit card.

Shopping with a credit card is also mandatory. In this case the bank has helped by setting limits. But you should also set your own limit below the limit of the bank, so it is more disciplined in using credit cards for shopping.

Understand the terms and conditions

Understand the terms and conditions

Usually in the morning, read the newspaper, now, change the document to read the terms and conditions to understand. This is what usually goes unnoticed. The terms and conditions must be read and understood carefully so that there will be no misunderstanding in the future. Many cases in the field of credit card owners are making a lot of fuss about writing letters to readers in the mass media because they feel burdened by “stealth fees” on the interest on their bills. Though the interest calculation was in accordance with the provisions set by the bank.

In addition, make sure we know the amount of additional costs we have to pay, such as late fees, cash withdrawal fees, and other costs. That way, we can think twice before using a credit card for puUSDoses that incur additional costs.

As much as possible pay in full

As much as possible pay in full

Although there is an option to pay the minimum bill of 10 percent of the total bill, try to pay the full bill every month. This is useful to keep cash flow or cash in and out of your account smoothly.

The minimum payment causes a bigger bill the following month. The thing is there is interest if it’s calculated quite large as well.

It will be more dangerous to pay a minimum amount each month. That means we are digging our own grave. In time we will be buried by debts that continue to accumulate.

Examine bills

Examine bills

People say many bills have lots of luck … he said, you know. Many credit card users simply pay bills when they get a bank statement. Though they should have checked the bill first. Who knows, there are transaction fees that we did not do but were charged to our bills.

By being conscientious, we at the same time ensure that we do not become victims of misuse of credit cards by others, especially internal bank parties. If there are irregularities in the bill, immediately contact the bank on the same day to make a complaint.

Leaving outstanding balance not paid

Leaving outstanding balance not paid

Outstanding balance appears when we do not pay the bills in one month. In the following month, a certain amount of outstanding balance will appear. If in that month we again do not pay in full, this debt will swell in the next month. If we really can’t pay in full this month, try to pay it off the following month. Because the outstanding balance of interest can grow quickly beyond the credit card limit if left unpaid for a long time.

Transactions approaching credit card limits

The general formula for keeping a credit card healthy is to use a maximum of 70 percent of the limit. For example, a credit card limit of USD 10 million. Try every month a maximum transaction of USD 7 million with that credit card.

Many credit cards are the same as having many wives, to be fair if you do not want to be complicated. It would be better if it did not reach USD 7 million. This is useful to prevent over limit.

If we for example have used USD 9 million before the bill date and suddenly there was an urgent need that required the use of a credit card of USD 2 million, meaning that we had to violate credit card limits. That’s why we should not deal near the limit.

Shame to consult financial difficulties

Shame to consult financial difficulties

If financial conditions are not good so it is difficult to pay bills, no need to be ashamed to visit the credit card issuing bank to consult. The bank can help arrange bill payment plans through negotiations. If finances are going bad, we can find a financial planner to ask for a solution. In essence, if there is a financial problem that makes the bill unpaid, there’s no need to be ashamed to tell about the difficulties. Don’t even underestimate it and cover it up.

If you can pay debt using a promise, guaranteed Indonesia will be rich. That’s the formula for using a credit card wisely and precisely. It’s not complicated if we want to be a little more thorough and disciplined. Credit cards are like kitchen knives. If we know how to use it, food dishes will look delicious. But if not, our fingers can be cut and bleeding.


See where it is cheaper to take payroll loans

By allowing loan installments to be debited directly to payroll, payroll- deductible loans have a higher guarantee than other lines of credit and, consequently, a lower interest rate.
The installments of payroll loans must respect the limit of 30% of salary and the maximum time of hiring is 60 months.
If hiring a payroll loan is really necessary then it is important to do your homework and compare the interest rates offered by the financial institutions.

We present the Lenders Bank of Brazil survey of the evolution of payroll loans interest rates of the 6 largest banks.
Payroll loans are divided into three groups. Payroll-deductible loans to employees of private companies (CLT), payroll-deductible loans to retirees by the INSS and payroll-deductible loans to civil servants.
In this survey of the Lenders Bank of Brazil, it can be seen that the average interest rate charged on payroll-deductible loans to civil servants is the lowest, followed by payroll-deductible loans to retirees by the INSS and, lastly, payroll-deductible loans to employees of private companies.

A private company employee has no job security as a civil servant, or a guaranteed income as a retired by the INSS, and for this reason, the interest rate ends up being higher.

Take care when hiring a payroll loan

payroll loan

There is a significant variation in the interest rates charged on payroll loans by different banks. For this reason, it is very important to research a lot before hiring a payroll loan.

The interest rates presented are average values ​​and may vary according to the client’s history, term, relationship, guarantees, among others. However, these interest rates serve as a reference when hiring a payroll loan.

The graphs below show the evolution of payroll loans interest rates from January to November 2013. For comparison purposes, the average annual rates of the first week of each month practiced by the main banks were considered, according to data provided by the Brazilian Lenders Bank.

What are the advantages of Payroll?

What are the advantages of Payroll?

The payroll loan has lower rates than a personal loan. For example, the interest on an unsecured loan can be around 4.6% per month. The fees may be even higher depending on the financial institution.

The installment of the loan, as well as the common payroll loan, is deducted directly from your salary or benefit, which reduces the possibility of increasing the debt and you can pay it off whenever you want.

Another great benefit of this type of credit is that the maximum loan amount is calculated according to what you earn in return, the installment cannot exceed 30% of your salary or benefit.

Another advantage of the loan is the agility, in addition to not requiring a guarantor, as soon as your credit is approved it is deposited in your account. Very practical and faster.

How to acquire the loan?

How to acquire the loan?

Caixa customers can apply for the guaranteed loan through Internet Banking. Those who are not account holders of the bank can call the call center or go to one of the branches.

See the main requirements made by the box to gain access to this type of credit:

  • Have sufficient balance for the loan in the guarantee fund;
  • The benefit amount cannot be greater than 30% of the monthly salary or benefit;
  • The monthly installments are equal and discounted directly from the salary or benefit.

Need fast credit? Try our online loan comparison. With it you can evaluate the best interest rates and choose the most advantageous loan option for you. Access now and contract your credit online.

Mortgage Cost Increased by USD 9,000 in 2014

Turkey’s leading credit consulting firm negotiated that according to a report prepared by analyzing the data of 18 banks, monthly installments in the new year housing loans 1,319 from USD 1,393 to USD while 100,000 per loan total cost to the consumer in terms of 10 years to about 9 thousand pounds increased.

End of Year Campaigns Effective in December

End of Year Campaigns Effective in December

Interest rates have increased continuously since June, when historic bottom levels were observed in 2013. In December, banks were pleased to see the appropriate opportunities offered by banks wishing to meet their year-end targets. Banks offered a discount rate of 0.83%, while users benefited from 0.77% interest rates through year-end campaigns.

Reactive Interest Increases from Banks in New Year

Reactive Interest Increases from Banks in New Year

As the year-end opportunities offered by the banks came to an end with the new year, a total of 16 banks revised their interest rates upwards in January. Several banks raised interest rates by up to 1% and then back to 0.90%. A consumer who wants to use a loan of USD 100,000 for the house he will buy in January with special rates for can proceed with the lowest interest rate of 0.94% in 10 years. For a consumer who wants to repay in 5 years, the interest rate of the loan with the best cost is 0.92%, but the additional cost can be reduced to 0.88% by paying 2,350 USD.

100 thousand USD Monthly Installment of the Credit Increased 75 USD

100 thousand USD Monthly Installment of the Credit Increased 75 USD

While interest rates increased, monthly installment amount and cost rates increased. While the lowest monthly installment paid in December for a 100,000 USD loan in 10 years was 1,319 USD, this amount increased by 75 pounds and became 1,390 USD in January. The total repayment cost of the same loan increased by USD 9,000. Compared to the same period last year, the rates have increased by 24%.

Odds may rise slightly in the first quarter

Odds may rise slightly in the first quarter

When hundreds of requests from offer free advice every day, it is seen that with the increase in credit costs, some of the consumers who want to buy a house are waiting. In this period, Founding Partner Onur advised consumers who were hesitant about buying a house with credit.

Stated that they expect an increase in housing loan interest rates in the short term, adding that they believe that interest rates will go down to lower levels in the long term. underlined that rates can be an opportunity for consumers looking for housing and the down payment of the period of increase, and added that price cuts that allow opportunity purchases in the real estate market can occur during periods of contraction in the market. For this reason, in the environment of interest rates increased enough and the consumer seeks the right price of real estate, even if the loan uses a little high interest in the restructuring within 1-2 years can reduce the cost seriously reminded.

The interest rate increases in the period of consumer credit and credit card debts observed that the increase in consumers, he said. Adding that these solutions are expanding rapidly to consumers, Suggested that consumers who are trying to get out of the credit bottleneck should use solutions such as house collateral and lower interest rates, collecting loans and structuring in the long term.

Mortgage extension or a personal loan?

The cost of expanding the existing mortgage

The cost of expanding the existing mortgage

In the situation that needs financing, there are some who think that since they are paying a mortgage every month, the easiest is to expand it and thus have only one payment. But be careful, it is not always the cheapest option and can lead you to be paying more. How is it possible? You should know that the mortgage extension operation, which is also known as “novation,” entails expenses that may exceed the interest on a personal loan. The costs of a novation are as follows:

  • Novation – The novation commission is usually contained in the contract and is usually up to 1% of the capital that remains to be amortized.
  • Appraisal – Since the mortgage is increased the entity can request a new appraisal of the home. The cost depends on the appraisal agency chosen, since each has its own rates.
  • Agency – For taking care of the necessary procedures before the different institutions, an amount of money is usually charged, the price is freely set by each company.
  • Notary – A new visit to the notary carries other expenses. They usually range between 0.2% and 0.5% of the outstanding capital.
  • Property registration – You have to pay to modify the mortgage notation that weighs on a property. This entails approximately half of the notary’s expenses.
  • Tax – The tax on documented legal acts is established according to each autonomous community in which the operation is carried out. The average is 0.5%.

Much higher payment term

Much higher payment term

Another problem with the novations is that it is possible for the bank to take advantage of the renegotiation of the current mortgage contract to raise the differential or change some other clause in its favor.

It should also be borne in mind that this operation entails a much higher repayment term and therefore, may end up being more expensive. Finally, the banking entity may refuse to grant the extension. Having a mortgage contracted does not mean that the bank is willing to extend it. You may consider that your financial situation is not the most appropriate to assume that cost, so you can deny the extension.

Call credit to the overdraft facility

Call facility demands

Call facility demands

An on-demand loan works just as flexibly as an overdraft facility. A rigid repayment is not intended for this type of loan. Instead, the bank grants the customer up to a defined credit limit that he can freely use. For this reason, the call credit is also called a framework credit.

Difference to the overdraft facility

In contrast to the overdraft facility, the call credit is not linked to a checking account. The financial institution sets up a separate credit account for the borrower, from which he can access money at any time. The borrower can then transfer the outstanding amount from an account of his choice to the credit account to repay the loan. The overdraft facility, on the other hand, only allows an existing account to be overdrawn.

Variable credit line

Variable credit line

The credit line is freely negotiable and depends primarily on the creditworthiness of the customer. After receiving a Schufa report, the bank sets a maximum loan amount. The available credit lines range from 300 to 50,000 USD. In practice, however, minimum limits of 2,500 USD are common. The banks have an interest in setting the credit limit for the call credit as high as possible in order to earn on the interest. However, the borrower is not forced to fully utilize the loan. In addition, he only pays interest for the loan amount actually drawn.

Interest rate

Since the call credit is not limited in time, the banks reserve the right to adjust the interest rate to current market conditions. Some credit institutions base the borrowing rate on the key interest rate of the Cream bank. Others link the interest rate to the Euribor money market rate, which reflects short-term interest rate developments on the capital markets.

Alternative to the overdraft facility

Alternative to the overdraft facility

As a rule, the call credits offer somewhat better conditions than the conventional overdraft loans with regard to the interest rate. As a result, this type of loan is often a cheaper alternative to overdraft facilities. However, call credits are less well known in the public eye. This may be because only a small percentage of banks offer this type of loan.

Loan for negative

As much as you take care of your finances, a slight oversight or even an unforeseen event can end up putting your name on the SPC, and this can become a headache. The problem is that precisely in this situation it is more difficult to get the approval of banks and financiers.

If this is your case, do not despair! In Brazil there are companies specializing in credit for negatives, you should carefully research the companies, lenders and their proposals.


How it works?


This type of loan, is for those who want to clear the name and pay off debts, it is worth mentioning that in this modality the interest is higher, since it has a history of non-payment of bills. To apply for this type of loan simply.

1- Make a deal with companies where you have restrictions

Now that you know the amount you need to get, make sure you get the amount of installments you can pay each month so you don’t get into debt again


2- Analyze the company that can make the best proposal for you.

After these important steps, the company will ask for data such as: CPF, bank account, address, ID … It will make an analysis, and in a matter of minutes you will have the approval of your credit, being approved, in a matter of hours the money already falls. in your account.



credit loans

Even with the name negated, the company in which the loan was requested does an analysis for the approval of your credit:

  • Score: The score represents how good a payer you are, it is essential for any type of loan.
  • Cadastral Data: The data is very important for your analysis, be sure to fill it in correctly.
  • Bank History: The history is only for the evaluation of account movement.


What are the advantages?

loan advantage

Staying with the restricted name can make you lose a job vacancy, a public job or a competition and especially prevent you from making a credit card or even getting a savings. That’s why you should pay off your debts as quickly as possible with installments that fit your pocket.



credit loans

There are many fraudulent websites and companies that take advantage of the situation to charge advance deposits, for example.

Watch out for companies that do not have contact information eg email or phone numbers

Another important caution is the interest. Compare the Total Effective Cost (CET) to the credits you are researching before signing the contract.

Get an Online installment loan?

Online Credit Archive | Outback Is a free or fixed purpose more useful? On the pros and cons is to say: In a free-to-use loaner can be made in one go multiple purchases at once and no one asks the question of what you spend your capital. However, in the case of a dedicated loan, such as a car loan or a construction loan, the borrower usually expects more favorable terms.

The installment loan is not a separate type of loan, but a generic term for the various types of loans. The repayment of borrowed money must, as the name implies, take place in several tranches. Duration and amount of interest must always be agreed with the house bank before borrowing. During the repayment phase, both the tranches and the interest rates usually remain at the same level.

With a free credit installment, the money can be used for all purchases

With a free credit installment, the money can be used for all purchases

The basic question is whether it is absolutely necessary to conclude a loan agreement with a house bank. You must be aware that borrowing – and in some cases the application – has an impact on your Credit Checker results (LINK TO TEXT).

It is therefore advisable to look for opportunities before borrowing. In addition, a house bank needs collateral when borrowing, usually in the form of the borrower’s income. As a result, the borrower cedes his fee – or the non-attachable part of it – to the house bank if he is no longer able to pay the installment.

An online loan is a variant of the installment loan, which is awarded exclusively online. By eliminating on-the-spot advice, the online loan often offers better conditions than the more advice-intensive classic off-line loan. A car loan is – as the term implies – coupled with vehicle financing. This type of loan is co-financed by both banks and car dealers themselves.

In many cases, the takeover offer of the house bank is ultimately cheaper than the supposedly attractive takeover bid. Unlike traditional installment credit, car registration is often kept as collateral for the car loan business. In this way, the principal bank protects itself in the event that the borrower is no longer able to make his partial payments for the vehicle.

You should carefully check here if your house bank does not accept any other security or if it only needs a credit check. A real estate loan is also a purpose-built loan for investment projects in connection with the construction or purchase of a building or apartment.

An installment loan is usually secured by the debtor’s income

An installment loan is usually secured by the debtor

While real estate loans are secured by the property itself. If the borrower can not pay the dwelling house or the apartment, Good Finance has the right to sell the property in the form of a compulsory auction and thereby repay the remaining receivable. Due to the associated higher purchase costs for a holiday home or apartment, it is particularly advisable to check the conditions and obtain a detailed recommendation.

When purchasing real estate, a cadastral entry is required, which records who owns the property, how high the purchase price was and also whether the property was refinanced by a real estate loan. Also, in this case, the house bank, where the loan application was made registered.

The modernization loan is an installment loan in connection with modernization projects on your own home or on your own floor. In the modernization loan, the house bank often proves to be a flexible provider and, for example, does not stand in the way of unscheduled repayments. Student loans are not comparable to conventional installment loans. The biggest differences are that the amount of credit taken is not in one go but in mont.

In this way, one is not tempted to pay more than the monthly living expenses with the loan and thus get into a higher debt burden. Some credit institutions grant loans whose interest rates vary and can change later. Another distinguishing feature to the conventional installment loan: After the payout phase, which usually lasts until the end of the study program, the principal bank grants the borrower a rest period, which is also referred to as the waiting period.

During this time no amount of money has to be repaid


And the borrower has the opportunity to seek a job and earn his first income. Subsequently, the eradication takes place – also in monthly installments. Before you take out a student loan, you should make sure that the house bank you choose also co-finances your university or study program.

This is not always the case, as some credit institutions specialize in certain areas. A debt rescheduling plan is a loan that is granted as a replacement for an existing, more expensive loan.

In the case of rescheduling, under certain conditions, several old loans can be combined and replaced by the new loan. Before you reschedule your debts, you should, in any case, inquire whether the principal bank, where you have used the current loan, demands a prepayment penalty for the early repayment of the loan.