Having a credit card in hand can make our life much easier at the time of shopping. Here we show you the situations that can really make it worth using this device. In order for the consumer to have more freedom when choosing to use it is essential to be aware of the limit of the credit available by the operator. But, after all, what is the ideal value for the credit card limit for each person? Let’s do it by steps.
How is the card limit set?
Several factors are taken into account by the administrator to establish the limit of a new card. The user profile is analyzed taking into consideration your total income at the end of each month. The account must be made so that the cardholder can pay the invoice. Without being committed to debt above your purchasing power.
There are numerous cases in which financial operators offer a pre-approved limit card. Usually, this value is not so high and is intended to facilitate hiring by the customer. Subsequently, the latter may request that the amount be increased upon presentation of proof of income and other documents.
Still with questions? In the video below we explain how it works and how to increase the limit of the credit card.
How much of my income can I commit to the card limit?
Many personal finance experts argue that a figure corresponding to 50% of your income is ideal for setting a credit card limit. Thus, you have a healthy financial life without the need to make personal payday loan.
It is easy to remember that the expenses with the card will be added to other financial transactions that you have to make every month. Such as rent, health plan, water bills, electricity and internet, among others.
Based on this principle, each client can make a quick count to imagine what their ideal limit will be. Adding all these fixed expenses and subtracting from your total income. The remaining money is the one you have to carry out other expenses throughout the month. From there, separate a portion of that amount to eventually commit to card spending.
And attention: common sense must always prevail. Remember that unexpected expenses may appear ahead. Exactly so, we should never compromise our entire income with a single purpose.
What is your credit card spending profile?
When hiring a new credit card it is important to have the above question in mind. Are you the type that does a lot of shopping online? Do you like to use your card for all types of transactions to accumulate points and benefits offered by the administrator? Are you a constant user of services that require pre-registration of the card number to facilitate payment, such as individual passenger transport or streaming video and music?
If the answers to questions of the type are positive, it is possible to try a greater limit for its limit. Since part of your budget is already committed to this by the end of the month.
However, if you are not a regular credit card user and only use this device for one-time purchases, a high limit is not necessary. Eventually, for a higher value purchase, negotiate the increase of the direct limit with the operator.
And it’s worth strengthening
Common sense in using credit card is critical to not compromising your finances and so you do not sink into debt. Constantly make an assessment of your threshold and see if what you have available for use is right for you. At any time, contact your operator to renegotiate the amount, either to increase or decrease the limit. This can be critical to keeping your financial health up to date.