Credit card: Opportunity to grow with the bank's money

When you use a credit card, you are accessing the bank's capital to finance your purchases and projects.

 This not only allows you to manage your cash flow more efficiently but also gives you the opportunity to build a robust credit history, essential for major purchases such as homes, cars, or financing your own business.

Opportunities to use credit:

·         How it works: A credit card allows you to make purchases using a credit line granted by the bank, meaning you're using the bank's money with a commitment to repay it later.

·         Benefits: Each transaction and timely payment is reported to credit agencies, building and strengthening your credit history

·         Protection: Greater security against fraud and disputes. Credit cards usually offer additional protections, such as limited fraudulent charges and dispute resolution programs.

Direct comparison:

1.       Building credit: Debit cards don't contribute to your credit history. Responsible use of credit cards does.

2.       Consumer protection: Credit cards offer greater protection against fraud and disputes than debit cards.

3.       Rewards and benefits: Credit cards offer reward programs that debit cards usually don't have.

4.       Cash flow: Credit allows you to better manage your cash flow, especially in emergency or unexpected situations.

Practical tips for leveraging bank credit:

• Understand the terms: Familiarize yourself with concepts like APR (Annual Percentage Rate), interest charges, and statement dates.
• Constant monitoring: Regularly review your credit score and report to detect and correct errors.
• Timely Payments: Always pay before the due date to avoid late fees and damage to your score.
• Keep Low Balances: Don't use more than 30% of your credit limit to maintain a good debt-to-credit ratio.
• Monthly Budget: Include credit use in your budget, ensuring you can cover the payments.

Using a credit card wisely is more than making purchases; it's a strategy to grow with the bank's money.

By building a solid credit history, you gain access to opportunities that can transform your life: from acquiring your home, financing a vehicle, to starting your own business.