The credit card is an electronic payment method made of plastic material in a rectangular shape. It contains a chip and a magnetic stripe, as well as other information such as the bearer’s name, registration number, expiration date, signature field, and security code. All of them have a pre-defined credit limit and are accepted in different establishments.
In the last ten years, with the creation of digital banks and new fintech, the master card has become one of the most popular means of payment among Brazilians.
But with that, we also had an increase in indebtedness cases because many do not manage their finances well and end up spending more than they can afford.
If this is a topic that also brings you doubts, don’t worry. In today’s text, we present the different types of credit cards, tips on how to use them the right way, and keep your finances always in the blue. Be sure to check out the content until the end, and happy reading!
Understand credit card types
The different types of credit cards vary according to the benefits that each one has, whether for its interest rate, annuity, or coverage.
Check out the most used types today:
National
The national credit card can only be used in Brazil, and, therefore, its annual fee and limit are more accessible. Some of them even offer benefits like points programs.
It is more suitable for people who are opening a bank account, who only shop in Brazil, and who have a slightly lower income.
Classic or International Standard
Unlike the national one, as the name implies, this type of credit card can be used in other countries. Therefore, your annuity rate is a little higher, and your limit tends to be higher as well.
The International Classic credit card offers little variety of benefits, but it has an attractive points program for some customers.
In addition, with it, it is possible to make withdrawals abroad – subject to extra fees from banks. Therefore, it can be a good choice for those who frequently travel out of the country or who usually shop on foreign sites.
gold
This type of credit card is more differentiated compared to the Classic or Standard. To obtain it, you must have a slightly higher minimum income, which may vary from bank to bank. Usually, their fees are also higher.
They offer more benefits which are usually:
- Price protection insurance – you can request a refund of purchase if you find the same product for a lower price;
- Purchase protection insurance – for accidental damage or theft;
- Original Extended Warranty – You can purchase an extended warranty on a product at no additional cost;
- Relationship program;
- 24-hour emergency service.
platinum
This type of Platinum credit card is aimed at people with high financial transactions, usually between R$5,000 and R$12,000. The annual fee for this type of credit card is around R$450.
It offers all the benefits of the Gold credit card and other extras, such as special programs and premium services.
Some benefits of this type of credit card are:
- Special travel services such as travel advisor, airport concierge, and cashback offer when customers travel and pay by card;
- Emergency medical travel insurance;
- Personal assistant available 24 hours a day;
- Auto insurance;
- Experiences and special offers, such as movie tickets – when you buy a Cinemark ticket online, you get the companion ticket;
- The biggest line of credit.
Black or Infinite
This is the unique type of credit card of all. It is for high-income customers only. To get this card, you need to have a minimum monthly income of about R$15,000 or have high investments.
In addition, to have all the benefits that this type of credit card offers, it is also necessary to pay a high annual fee that can reach up to R$1,200.
He is conquered after a long successful financial life. Hardly anyone will open a bank account already being a Black or Infinite customer.
In addition to all the benefits offered by the Platinum credit card type, this one also includes:
- Special travel services, such as access to VIP lounges at various airports, concierge services, and even a limousine service at some airports, travel agents, and international offers;
- Baggage loss insurance;
- Insurance against theft at ATMs;
- Trip cancellation;
- Differentiated service at partner hotels and resorts;
- Discounts at selected hotels and restaurants – such as Fasano São Paulo and Rio de Janeiro;
- Additional Miles;
- Assistance with boarding delays or missed connections on flights.
Main credit card brands available
MasterCard
This international brand is the leader in Brazil and is accepted in most establishments that accept card payments. The banner has credit, debit, and prepaid cards.
Visa
This other international flag is the vice-leader in the Brazilian market. It is also accepted in several establishments and has partnerships with thousands of companies to grant benefits and discounts.
American Express
The most popular brand among class A and B audiences, it has partnerships with Cielo, GetNet, Rede, Stone, Credicard, and other companies. It also offers several benefits, such as a points program, discounts, and VIP access.
HyperCard
The brand stands out for requiring a low income to issue a credit card with the Hipercard brand. Therefore, it is highly appreciated by businesses that sell basic and popular items. It is accepted in more than one million establishments throughout Brazil.
Link
The all-Brazilian flag is also accepted in Argentina, Chile, and Portugal and has 120 million users. The cards have credit, debit, and prepaid functions, and their rates are among the lowest. In addition, it has several special programs for entrepreneurs.
Credit cards that offer the most benefits
Melius card
It has no annuity and still has up to 1.8% of the purchase value in cashback. Values from R$ 20 can be redeemed directly from the consumer’s account.
Blue Card
The main benefit of the Blue Card is the ease of purchasing airline tickets from Azul Airlines. It is possible to accumulate points and eliminate the annual fee, in addition to getting discounts on airline tickets, free luggage, and extra travel benefits.
Santander SX Card
Exclusive discounts at partner stores, the possibility of payment by proximity using a bracelet, stickers, or tag, and the possibility of zeroing the annual fee by spending R$ 100 on purchases on the card are the main benefits for those who subscribe to this Santander card.
Nubank card
With no annual fee, the Nubank card has benefits and a points program to which consumers can choose whether to subscribe or not. The service is differentiated, with a high level of consumer satisfaction.
Bank of Brazil credit cards
Despite having a smaller portfolio of cards compared to other card issuers, Banco do Brasil has some card options with no annual fee. However, not all of them! Ourocard Fácil, AME credit card, Petrobras, KaBuM, Saraiva. In the case of Eurocard Fácil, for example, the annuity is zero, and there is no minimum expense. However, he does not score within the “Pontos para Você” program.
Carrefour card
The Carrefour credit card has numerous advantages for its customers, such as:
- An installment in up to 24 interest-free installments;
- Exclusive discounts on products flagged in physical stores or on the Carrefour.com website;
- Payment in up to 10 installments at Drogarias Carrefour;
- More time to pay for the fuel at Carrefour Posts;
- In market purchases over R$ 199.00, the freight value is refunded on the invoice;
- Use 1x a month in Carrefour stores and earn zero annual fees;
- Payment of the invoice in any bank;
- Up to 14 expiration date options.
Casas Bahia Card
The Casas Bahia credit card works like any standard credit card. However, it has several exclusive benefits for its customers, such as discounts on selected products and in stores of brand partners, R$ 10,000.00 sweepstakes, and can still be used internationally in physical stores or online.
American Card
The retail chain started to make available the credit feature for its customers, in addition to the installment plan and store card options. In this way, it is possible to hire and use the service in other establishments, in addition to enjoying all the benefits that the company offers.
Walmart Card
Banco Itaú, in partnership with the Walmart network, makes available to its customers the Walmart Itaucard 2.0 Internacional MasterCard credit card. It is a card widely accepted in Brazil and in the world by the Mastercard brand.
To make this card, proof of minimum income of R$1,000.00 per month is required. In addition, the Walmart card has an annual fee of R$142.80 or 12x R$11.90 for the cardholder and R$71.40 or 12x R$5.95 for additional cards.
Magazine Luiza Card
Those who have the Magalu card have access to exclusive offers and can pay in installments for their purchases on the website and in the chain’s physical stores in up to 24 installments. In addition, it has an extra discount on an application that brings together special offers and has an annual fee of R$ 9.99, and it is possible to purchase a version with zero annual fees. Customer service is also highlighted.
Discover more no-fee credit cards in our content: 12 best no-fee credit cards
Now that you understand the types of credit cards that exist, learn how to apply for yours:
Three steps to apply for a credit card
Applying for a credit card is no longer a more complicated task than before. Nowadays, you only need to follow these three steps :
Step 1: Choose your card type
The first step to applying for a credit card is to choose your preferred method (among the options mentioned above).
Each of them has specific characteristics that may vary according to your purchasing power. It is always recommended to choose the one that fits your income.
After that, you need to choose which bank or institution you will apply to. Today there are credit cards from banks, fintech, supermarkets and even clothing stores.
Step 2: Gather the necessary documents
After deciding on the type of credit card and the institution, you will apply to, contact them as soon as possible.
Currently, it is quite common for this to happen online. On its website, it will only be necessary for you to enter your data, send a photo of your identity document (with photo), and proof of residence and income. Some locations only ask for these documents after a pre-approval of the credit, while others make the request before this stage.
Remember to read and approve the terms and conditions of engagement. Give your full attention to this part, and then check out the free services offered by the card and additional fees.
Step 3: Wait for card approval.
If you have already followed the steps above, all that remains is to wait. Within 15 days, you will usually receive a notice saying whether or not your application has been approved.
- Approved application: Most institutions automatically send the new card to your home. But if your proposal is approved and the card is not delivered within a month, contact the institution;
- Failed card: It is recommended that you order another card, as approval requirements may vary from institution to institution.
How to control credit card spending?
Now that you know the types of credit cards and how to apply for them, it is also important to know how to control your monthly expenses because the intention is that it is just a means of payment and not a financial problem.
Check out some essential tips!
Look for cards with no annual fee.
In 2019, Brazilians paid, on average, about R$915 in annual credit card fees, according to a survey by Guia Bolso. That is a heavy addition of value in the pocket, in addition to being money poorly spent.
With this, looking for cards with no annual fee is a great option for controlling credit card expenses. Currently, there are several banks that already offer “free” cards, and they are Nubank, C6 Bank, or PicPay, for example.
Lower your limit
According to the SPC, one in three people does not know what their card limit is, and this is one of the big reasons why they get into debt.
And added to poor financial management, they naturally go beyond even the limit they can pay in the month. Therefore, among the main tips on how to control credit card spending is lowering the limit.
Pay the card on time to avoid interest.
Surely you’ve heard of interest on interest. This happens when you pay your bill late. And the more days you delay your bill, the more expensive the debt value is.
Once this happens, the person ends up exceeding their budget, and interest takes over the bill with some additions that can reach up to 2% per day.
Paying the bill on time is considered one of the main tips to control credit card spending and maintain your financial health.
Always pay the full amount.
The average interest rate on the revolving credit card has exceeded 300% per year. This means that when you decide not to pay the full amount of the invoice, you will have to bear a very high-interest rate.
And when you choose to pay only the minimum invoice amount, you put yourself in a debt scenario. Therefore, the best thing is that you control your credit card expenses and always pay the total amount of the invoice.
Avoid long installments
Long installments can be a trap for those who cling to the monthly amount when a purchase is divided into many installments.
First, because many stores add interest, depending on the number of times the account is split. And then, when you opt for credit card installments, the card limit is reduced for a long time.
Don’t go over your budget.
One of the top tips on how to control credit card spending is to keep your bills within budget.
Doing financial planning ensures that you don’t go into debt and don’t spend more than you can afford. Make it a priority to monitor your fixed and variable costs month by month before making an impulse purchase that could compromise your limit.
Avoid impulse spending
One of the biggest problems with credit card is that it encourages unlimited purchases and give the false illusion that buying something in installments will not hurt our budget that much.
With this in mind, the ideal thing is that you analyze the purchase that will be made and if the value is within your budget. Remember that you will have to pay your installments every month.
The ideal limit for credit card and revolving interest
The ideal limit for your credit card is one that you can easily pay without getting into trouble. To reach the ideal value, follow these tips:
- Try to keep the limit up to 30% of your income;
- Only use high limits in emergency situations, but consider whether there are other credit services with more advantageous conditions;
- Set a spending ceiling;
- Prepare to pay the installments always on the due date;
- Do not make unnecessary purchases on open invoices;
- Leave non-essential purchases for when you have received your next month’s income.
In addition, it is necessary to be very attentive to the revolving credit or the interest rate that is charged when you do not pay the full amount of the credit card bill, that is when you pay the minimum amount of the bill. Rates are often very high, reaching more than 20% per month, according to the Central Bank’s interest rate report.
So plan ahead, so you don’t run the risk of defaulting on your credit card.
Precautions to avoid scams and fraud
First and foremost, you need to make sure that the financial institution you are applying for a credit card to is trustworthy. Check the central bank’s website to see if the institution is authorized to carry out financial operations and search for the company’s reputation on search engines.
Before filling in your details to apply for the card, you need to make sure that you are on the official website of the financial institution. Stay tuned. Trusted addresses usually start with “HTTPS,” and your browser displays a padlock next to the address. If you see random numbers or letters in the middle of the domain, be suspicious.
Also, be suspicious of untrustworthy websites, messages, and emails, and remember that trusted financial institutions do not ask for passwords or other sensitive information.
Conclusion
The credit card is a very useful means of payment for our daily lives, and it is no wonder that it has gained more and more followers.
However, after what we have learned in this content, it is important to always be aware of the type of card that will make the most sense in our current moment and which institution will offer us the most advantages.
In addition, knowing how to control your expenses is also essential so that the purchases we make with them do not become an expired debt.
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