There is no secret not to break the payroll credit card limit. The tip is: use with awareness. But if for any reason it was necessary to use the full credit limit available, know what not to get into further debt.
3 tips for not breaking your card limit
Pre-approved and available credit limit is always welcome. However, care should be taken when using it to avoid going into red and also having the payroll credit card available when you need it. So, enjoy to check out these tips!
1 – Create criteria for using your credit card
At first this may not seem to make sense. However, if certain rules or criteria are adopted, it will be much easier to control card spending. A good tip for financial experts is always to assess the need for credit. Then, it is also worth evaluating the available options, as advised Sebastian Martin, financial advisor:
Credit card is not always the best option. Because it is more affordable, many people do not even evaluate the alternatives and thus can pay more. In practice this means that there may be better solutions. Knowing and comparing interest rates and Total Effective Cost can help you make the best choice.
2 – Keep spending within the limit of payable margin
This recommendation is very simple and should be used in any case for good financial health. Breaking the credit card limit may just be the beginning of the symptom of financial uncontrollability. And, if not resolved, can lead to other more serious problems.
So the basic tip is: spend less than earn. And in the case of payroll-deductible credit cards, it is worth keeping spending within 5% of the payroll margin.
This will be the amount automatically deducted from the INSS salary or benefit. If the expense is higher, you will need to pay the additional invoice within the month. That is, depending on the situation, there may be two discounts, which will compromise the monthly income.
3 – Use the card as a financial reserve
The payroll-deductible credit card limit can be used to purchase installments or cash withdrawals. This facility therefore allows easy access to cash or extra credit. For this reason, the payroll credit card can also be used as a financial reserve. That is for emergency cases.
This way, you don’t have to look for other types of personal loan, go through credit analysis and every known process. Just use the card and if it is not already unlocked, request its unlock. Understand now what to do if your limit has already gone into red.
What to do if the Payroll Credit Card limit has been exceeded?
I have exceeded my Payroll Credit Card limit, what do I do? The first point is: turn on the warning signal! The second and most important is to pay the debt.
The answer is yes! Although the payable margin remains the same, by law, the credit limit may be reached and even exceeded in some cases. In addition to having no more balance available, the cardholder will have to pay off the outstanding balance. This amount can be paid via automatic discount (5% of payable margin) and also by payment of the additional invoice.
But is it really possible to break the payroll credit card limit?
If the full amount of the invoice is not paid, the amount will be increased by the revolving credit interest rate. Therefore, debt may increase. The tip in this situation is, if possible, to pay part of the open value. As the monthly invoice is usually issued by the bank, your payment can be made direct at ATMs or via internet banking, at the amount the holder wishes or can afford.
If paid by the due date, the amount will be the same. If you are late, the holder may also pay additional fees.
From the identified payment, and if not used again, the balance will be reduced and the credit limit released again.
Since the payroll-deductible credit card limit is directly associated with the cardholder’s monthly income, it cannot be reduced. However, despite lower interest rates when compared to traditional cards, it is worth remembering that the higher the risk of default, the higher the amount charged.
Even if the payroll card has its automatic payment (for use of the margin), if it is not properly cared for, the debt can become a snowball. So, whenever you use your card, evaluate first if it is really necessary and keep your spending on what you can really afford. Consciously using the payroll credit card is still the best decision!
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