You will have it in your hands in 20 minutes, you will not pay annuity and, most importantly, you will enjoy dozens of promotions that will look like great discounts that you will not be able to miss. That is the face that will let you see your departmental credit card and the main reason why it is irresistible, although in reality it is a risk to your personal finances.
A departmental credit card allows you to consume within the issuing business – and some affiliated stores – with conditions that look favorable such as discounts, exclusive promotions, deferred payments or monthly payments. In some cases, this plastic also allows you to withdraw cash from your ATMs.
However, although they look like an almost perfect financing mechanism, it is very important to know your less attractive face. While some of these credit cards are backed by banking institutions, they do not necessarily operate with the same policies or conditions. In fact, they could be among the most expensive in the market because of the high interest they charge.
Therefore, before accepting the issuance of your departmental card, consult the Bank of Mexico for the comparative costs of credit cards in the market. Analyze the CAT, hidden costs and commissions.
It is recommended that you accept a departmental credit card if:
- You will buy durable goods. If you plan to purchase an appliance or furniture for your home it means that you made a budget and have spent months planning the expense. In this case, use the deferred payment promotions in your favor. This credit card is not an extension of your income, so do not use it for fast-wearing clothing or goods.
- You will start your credit history . It’s hard to get your first bank credit card since you don’t have a credit history. Departmental cards will open the way to a healthy financial history, as long as you use them responsibly.
It is not recommended that you accept a departmental credit card if:
- You have many financial commitments. Through a monthly budget calculate what percentage of your income is available to acquire a new debt. Remember that you must also allocate a proportion of your income to savings.
- You are not a totalero. Departmental cards are among the most expensive in the market and, if you are not one of those who pay the total of what you consumed monthly, late payment interest and commissions will become a problem in the near future.
Good advice on time
Before signing the contract for a departmental credit card you should read it in detail. There are even some that do not explain the extra charges or commissions. If you can’t find them, you can order them. However, keep in mind that:
- The financial authorities do not regulate the interest rates of these products, as they are handled in the commercial sphere. The competent authority that supports the user is the Federal Consumer Office (Profeco) .
- The most publicized card is not necessarily the best option for you. Find out and compare.
- Most do not offer insurance that covers the debt in case you die or due to theft or loss.
- Sometimes it is mandatory to hire insurance, which often has abusive clauses or very limited coverage.