Clipping of news on Brazilian Culture, Law and Citizenship
08.25.2015
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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Purchases on credit card
You are not taking advantage of all the benefits offered by the loyalty program of your credit card? Or are losing money to pay high annual fees without, however, able to enjoy the prizes?
Search the most suitable program to the consumption profile, read the regulation and monitor the cumulative score are simple tips, but can make all the difference for those who want to enjoy the benefits associated with purchases made in plastic.
Rewards programs often reward consumers with appliances, travel and discounts at hotels and restaurants, among other products and services. Generally, the premium is proportional to the amount spent on purchases in plastic: every dollar spent on the credit card allows accumulate a point in loyalty program linked to the means of payment.
Here are some tips for you to stop ignoring the benefits that can be obtained from the credit card loyalty program:
1) Ensure that the program is suited to your profile
To extend the use of the benefits of the rewards program, you must first verify that it is appropriate to how you spend money. What good the card offer advantages in airline mileage programs if you do not travel often, for example?
A simulator available on the consumer association's website Protest can assist in choosing the most appropriate card as the benefits offered (see what are the best and worst cards to collect points).
2) Read the agreement
All loyalty program has several restrictions on which users should be aware of.
Some, for example, can limit the use of points regularly, while others may also require a minimum amount for the transfer of points to frequent flyer programs, for example, says Maria Inês Dolci, director of Protest.
When reading the rules, you can compare different programs and see which can bring more advantages.
3) Monitor the accumulated points
Not enough to keep up when the points accumulated on the card rewards program will expire. It must ensure that any rules for the accumulation of points has changed or if the awards were modified.
Maria Ines, the Protest is recommended that checks be made frequently. "It is common verificarmos contracts the possibility to change the program rules at any time."
To assist in this task, the free app Oktoplus available for phones with iOS and Android system, warning about the expiration points with 60 days in advance.
4) Make sure the annuity rate pays off
Some credit cards, especially those that are aimed at high-income customers, offer high scores in their loyalty programs. However, in contrast, they charge more expensive annuity rate.
Although the benefits seem clear, it must verify that the value that can be obtained in the form of awards offsets this additional cost, especially if the rules for use of the points are restrictive.
5) Use the card responsibly
Collect points in the loyalty program should not be the main purpose for using the credit card. Plan and keep the accounts in order to be the highest priority when making purchases on plastic.
When performing unnecessary purchases just to enjoy awards, the risk of uncontrolled financial increases, and you may end up having to pay high interest rates to pay off the debt, which does not outweigh any benefits obtained.
6) Do not forget to use other benefits offered by the card
Some cards offer different types of protection, such as life insurance and travel insurance that, as well as the benefits offered by loyalty programs, should also be considered in choosing the plastic.
But before looking any benefit, the most important should be the amount of fees and interest rates charged by the financial institution for the use of plastic. It is these costs that will determine whether the credit card actually is beneficial and offers more benefits than costs.
The comparator cards Foregon, hosted on EXAME.com, can facilitate research. It shows the annual fees charged on different cards and benefits.
Source: Survey
To access the exam site, click here.
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This article was translated by an automatic translation system, and was therefore not reviewed by people.