Credit cards offer us many benefits, but how recommendable is it to have several of these means of payment? Finance expert explains it.
Credit cards offer us a range of benefits such as buy online or improve our credit history; however, misuse could be harmful to our finance. One aspect to take into account is the large number of credit cards that many users struggle to have, in order to access countless discounted products offered by different commercial entities. Taking this into account, How many of these payment methods are recommended to use? This question is explained by the finance expert Jorge Carrillo Acosta.
How many credit cards should I use?
In Carrillo’s words, “It is advisable to always have one or two credit cards maximum.” According to the expert, You can mainly opt for a card affiliated with the bank in which our remuneration is deposited. The second card could be from a commercial house with the purpose of take advantage of some offers or discounts.
Why is it not advisable to use more than two credit cards?
He is also a professor of Pacific Business School warned, on another occasion, that having multiple credit cards at the same time “it can end up disorganizing your economic agenda”, Due to the fact that when handling five or six different cards, it is difficult to keep track of what is being consumed in each one of the cards. cards. “That’s where you can go out of your budget because you are not controlling what you are spending by having so many plastics”, he emphasizes.
Another negative aspect that involves handling several cards at the same time is the commissions that financial institutions usually charge. “Most banks, finance companies or savings banks that have credit cards charge you a commission called membership, that is charged every time you turn one year old”, explains Carrillo and adds that if the cards are not used more within the month, would see an impact on the additional surcharge.
Another point that the finance expert emphasizes is be careful with potential debts, which translate when the user has a line of credit, for example, of S/20,000, which he decides not to use. Financial institutions will see this as “a risk” that could affect a possible request for a mortgage or vehicle credit.
“He’s going to tell you, of course, I’ll lend you, but you cut off my card. When the bank evaluates me, I’m going to be more risky. That is, they may not give me credit because I’m not going to agree,” Carrillo concludes.
According to SBS, consumer credit rates have risen. From being at 39.94%, it is now at 49.30%
Increase in interest rates on credit cards
Interest rates on all bank loans have risen in recent months and many are already above the historical average since September 2010, according to the latest study note from the Central Reserve Bank of Peru (BCRP).
The average annual interest rate of the Credit cards it went from 49.75%, in August 2021, to 59.05% as of February 2, 2023, that is, it rose by almost 10 percentage points since the BCRP raised the reference rate.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
