Credit cards

Loyalty programmes

Credit cards are linked to a loyalty programme. This means that, based on your card activity, you receive points and offers you can redeem in the future.

Depending on the loyalty programme, you may secure benefits and discounts for airfares, clothing at specific chains, fuel and heating oil, telecommunications, and almost everything else you buy.

Consider your spending habits and what benefits you are most likely to redeem, before choosing a credit card.

Pay off the entire balance each month

Shop with your credit card and, once a month, make sure you pay at least the minimum payment.

If you choose to pay off the entire balance of your card on the payment date, you pay no interest, thanks to the interest-free period offered by the card.

Choose according to your needs

All credit cards have an annual fee. Depending on the benefits offered and how these match your spending habits, you may end up saving more even with a higher card fee.

What to consider before you choose 

• Which card should I choose – Start with a simpler credit card. See which loyalty programmes match your profile, according to your own criteria. Compare the fee and the interest rate when you shop or withdraw cash.
• How do I use it properly – Every month you need to pay at least the minimum payment. It would be advisable to pay off a larger amount than the minimum payment, or even the entire balance, to pay less interest. Keep in mind that a credit card is a cash flow tool and you should not use it to accumulate debt.
• What if I fall victim to fraud and my credit card details are stolen – You can cancel your card on the spot through your digital banking or even over the phone, and dispute transactions you haven’t carried out yourself.
  

Credit card or personal loan?

Both are ways you can borrow money. They differ in the way they work and that’s why they meet different needs.

How a credit card works

You borrow only the amount you need every time and, if you pay it off, you can borrow again. In other words, you get a credit limit.

It allows you to:

• Simplify your daily transactions.
• Shop in interest-free instalments.
• Pay off sooner when you can. If you pay off the entire balance every month, you pay no interest.
• Secure benefits from loyalty programmes.
  

It is not helpful if you:

• Plan to pay only the minimum payment every month, as the interest rate is higher.
• Have difficulty with financial planning and monitoring your expenses.
  

How a personal loan works

You borrow the entire amount from the start and pay it off in monthly instalments with a specific term.

It allows you to:

• Make one-off purchases or expenses.
• Know from the start exactly what you are going to pay and when.
• Secure a longer repayment term.
  

It is not helpful if you:

• Plan to spend the amount in partial transactions, as you pay the interest for the entire amount from the start.
• Have recurring needs.