5 Credit Card Operations That Make Your Life Easier

The offer of financial institutions with regard to credit cards is varied. There are cards that offer discounts , others that allow you to accumulate points and even those that give you airline miles or those that have cashback . However, it is important that you know which credit card operations banks offer to facilitate your day-to-day management. Discover the five that we have selected for you in this article.

Choosing a suitable credit card may not be an easy task. Although the use of this product sometimes causes some fear, when used in a balanced way it can bring numerous benefits. The secret is just in the way you use it and take advantage of the operations it offers.

#1 – Payments for goods and services

One of the most common credit card transactions is paying for goods and services. This product allows you, in a comfortable, easy and flexible way, to make payments that work like a small personal loan by providing a ceiling determined by your bank, which you can use without having to resort to money in your current account.

A credit card can be beneficial in the face of unforeseen circumstances in which you need a large amount of money that you do not have available in your checking account. For example, imagine that your washing machine breaks down and you have to buy a new one. This appliance usually has a very high cost that you may not be able to afford right away, so resorting to a credit card can be an alternative.

In this way, you can pay for the washing machine using the ceiling available on your card, but pay attention to the payment deadline. To avoid extra charges with interest rates, you should choose, whenever possible, to pay 100% of the balance used, respecting the stipulated period.

#2 – Cash withdrawals on credit

Known as cash advance , withdrawing money is also one of the operations with a credit card that you can benefit from.

In general terms and according to the definition of the Bank of Portugal, cash advance works as a cash advance in which you can withdraw a certain amount on credit through a simple operation at an ATM .

The amount you withdraw on credit corresponds to part of your card plafond , that is, it deducts that amount from the credit limit you have available that month. However, this operation may have some associated costs, namely a fixed commission on the withdrawal.

Also note that if you withdraw money abroad with your credit card, other charges are added, such as processing, currency conversion and service fees, as well as commissions on the transaction amount. Additionally, you also have to pay Stamp Duty .

#3 – Credit transfer to current account

If an unexpected expense arises and you need to increase your checking account balance , you have the option of transferring money to it. This operation allows you to transfer the amount you want up to the available ceiling from your credit card to your account, thus increasing the authorized balance and giving you the possibility to use it.

Imagine that your car has an unexpected breakdown and that month you will have 200 euros of extra expense. You can request a transfer of this amount from your credit card plafond to your current account, however note that there may be costs associated with this operation, depending on your banking institution and the type of credit card you use.

#4 – Online credit

Online credit is another of the credit card operations available that can make managing your finances easier, especially in urgent situations when your card's monthly allowance has reached the limit and you need an extra amount.

This operation consists of transferring a certain amount, requested by you to the financial institution, directly to your current account so that you can use it immediately.

Since this operation is a type of financing, there is an associated interest rate that may or may not be the same as your credit card, so it is important that you take this cost into account before applying for a loan online.

The repayment of this amount is made through monthly installments, as with any other credit. However, you should assess whether an online loan is the most advantageous option for your needs or whether it would not be more beneficial to opt for a personal loan, as it may offer more attractive interest rates.

#5 – Fractional payments

Another of the credit card operations available to consumers is the possibility of making fractional payments . This is a card debt payment method that allows you to divide a certain purchase of goods/services into fixed monthly installments, similar to what would happen with a  personal loan .

You can agree a time limit with the bank and pay installments until you cover the amount you spent. In this way, you can define a payment plan for your purchases that fits your possibilities.

Nowadays, most banking institutions facilitate this management of your credit card, being possible to do it through apps or homebanking services .