6 tips to have a credit card and avoid fraud. Managing a credit card can be a two-edged sword if you don’t know all the rights and obligations you have when using your plastic.
The National Commission for the Protection and Defense of Users of Financial Services ( Condusef ) recently reported that 9 out of 10 claims to banks correspond to credit and debit cards , reiterating that both products are the most commonly used, but also more claimed by users. Of this number of claims, 76% correspond to possible frauds and the amount claimed amounts to 5,891 million pesos.
Managing a credit card can be a double-edged weapon if you don’t know all the rights and obligations you have when using your plastic; Therefore, the Condusef considers that the main thing to take into account is that the use of the card is a debt that has to be paid, and they recommend to keep in mind that bank cards are not additional money available.
Taking into account that there are more than 180 types of bank cards in Mexico, and that each one has different characteristics, as well as benefits and commissions, the Mexican startup Kueski was given the task of compiling these recommendations of the Condusef, in this list of Five things you should know before requesting or processing a credit card:
Avoid credit card fraud
Being aware of your statement will help you detect possible anomalies regarding the use of your plastic, in this sense, online banking can be a good ally to monitor your movements. Condusef recommends constantly checking your credit history and periodically changing your passwords. If you are going to make purchases online, it is suggested to do it with prepaid cards or make them with the ones with the least line of credit.
Choose the card that suits you best
We all have different consumption habits and interests, in the same way, we use some credit to cover certain needs. It is important to make a comparison and know the cards that best meet your needs. Take into account if you make recurring payments on the internet, shop in department stores, travel a lot or if you want it to have financial support in case of an emergency. On its website, Condusef offers you a comparison to choose the card that suits you.
Compare the Total Annual Cost
Knowing the Total Annual Cost (CAT), helps you compare the costs of the different credits or loans offered by the banks, as well as helping you understand the real cost for which you should pay off the loan.
According to Condusef, “the CAT, is an indicator that helps us compare the cost of loans,” is made up of the interest rate that the bank would charge us, and additional fees to the cost, such as the commission for opening, life or damage insurance, everything depends on the type of credit that is contracted.
Know your commissions
Each credit card charges different fees depending on the institution or the type of plastic. Among the most common charges is the annuity, which is the charge that the bank asks the customer to keep their card active. Another very common charge is the provision of credit, a service offered by financial institutions so that the user has cash at ATMs.
If you did not make any payment in the month, the institution can charge you a commission for non-payment, even if you did not cover the minimum on the deadline and before the next cut, you can be charged for collection costs. Similarly, there are financial institutions that charge you a commission in case of theft or loss of your card.
Keep in mind the payment deadline
It is the date on which you must make the minimum payment, total payment or the “payment for not generating interest”. Sometimes some payments to credit cards are not counted the same day they are made, some may take up to two business days to be reflected, therefore, specialists recommend making your payment before the deadline.
According to the National Survey of Financial Inclusion 2015, 70% of people who have a credit card, said they have fallen behind more than once with the payment of their debts, so it is important to be punctual with your Payments.Know the date to make claims
In case you detect unrecognized charges or services not contracted in your statement, you should know that there are limited times to file any claim with the financial institution.
Always check the statement and keep your vouchers. In case of errors or omissions you can submit clarifications.