When you buy a card, a credit line also comes with it, which is the amount of money the bank is giving you to spend.
Credit line information
This line is assigned according to the credit evaluation that the bank makes of you, where your income level influences.
The credit line can represent a danger if you don’t take into account certain things:
– It should not be more than twice your salary, because the higher it is, there is a greater possibility of borrowing and that makes the bank can begin to see you as a risk.
– Your monthly debts should not exceed 35% of your income (maximum). So, if you are already paying a housing loan that covers 20% of your salary, you can use the remaining 15% on the card.
– Even if the credit line is high, it does not mean that you should use it all. I set a fixed amount of spending and respect it, that will help you keep track of how many times you use the card to pay.
– Finally, if the credit line that the bank granted you seems very high, you can request a reduction, and thus be more sure of not exceeding.
If you don’t have a credit card yet
Knowing this will help you make sure you keep everything under control. Before requesting one or changing the one you already have, do not forget to compare interest rates and other benefits. Use the card comparator and in a few minutes you will have all the information.