Tips for consolidating payday loans

Using one or more credit cards to postpone the payment of purchases remains one of the most used financing methods in our country. However, the amount of money that can be used each month is usually not very high, which leads many people to wonder how the credit limit can be extended. Next, we will see what it depends on that a card allows us to have more or less money and what are the products that offer a higher line of credit.

What does the limit of a credit card depend on?

The issuing entities do not usually grant a credit card with a very high limit to a new client since they still do not know their consumption habits and do not want to risk being unpaid. Therefore, the vast majority offer an initial limit of € 600, which will increase according to the following factors:

  • The income of the owner. Logically, the maximum credit limit assigned to us will be higher the more money we charge per month.
  • Recurring expenses Credit card issuers will also take into account the fixed expenses of the cardholder, such as the installments of other loans, rental income, etc.
  • The payment history. If the owner has been a client of the entity for some time and does not delay payment of the fees, he may obtain a higher limit.

Tips for using credit cards responsibly

Easily dispose of large sums of money is a great advantage, but it can also be very dangerous if we do not use credit cards in a responsible manner. If we do not want to take on too much debt, we must take into account how to get rid of payday loans legally

  • The total payment is better than the deferred payment. If we return all the credit used during the month in one payment at the end of the month or at the beginning of the next, we will not have to pay interest. On the other hand, if we split the payments, we will have to face some interests between 12% and 30% APR.
  • If we use the deferred payment, we must hire a card with a low APR. It is important that we look at the annual equivalent rate of the card and not your TIN since many entities show only the nominal monthly interest rate.
  • We must never pay the minimum fee .. If we pay the minimum, it will take many years to pay off the debt with the card and we will have to pay a lot of money in interest.