5 Interesting Facts About Credit Cards That You Need to Know

Nowadays, it is almost impossible to imagine financial life without the convenience of credit cards.

From everyday purchases to larger installments, it has become a true ally of the modern consumer. However, few know that behind a simple piece of plastic there is a universe full of surprising information.

In this article, we will reveal 5 interesting facts about credit cards that will change the way you see this financial instrument that is so present in your routine.

In addition to better understanding how the card works, you will be able to make more informed decisions and even take better advantage of the benefits offered by financial institutions.

Keep reading and discover how these interesting facts can help you use your card more intelligently and safely.

1. The Credit Card Was Created From an Oversight

Did you know that credit cards came about by chance? This is one of the most interesting facts about credit cards.

In 1949, in the United States, businessman Frank McNamara went out to dinner with some friends at a New York restaurant. At the end of the meal, he realized that he had forgotten his wallet at home. The situation caused discomfort, and he had to ask his wife for help to pay the bill.

This episode led McNamara to devise a more practical and secure way to make payments. The following year, he founded Diners Club, the world's first credit card system, accepted in many establishments. Initially, the card was made of paper and used only by a select group of people.

Today, more than seven decades later, the credit card has evolved dramatically, incorporating technology, digital security and rewards programs. But it all started with a simple oversight.

2. Not All Available Limit Is Yours

Among the 5 interesting facts about credit cards, this is one of the most revealing. When receiving the card limit, many people believe that this amount is “extra money” that can be used freely.

However, it is important to understand that the limit is not an additional amount to your income, but rather a pre-approved loan with interest and charges if you do not pay the full amount of the invoice when due.

Additionally, the card limit may be linked to other bank products, such as loans, financing or other cards linked to the same account.

I.e, the limit is not always really “yours”, and using it without planning can generate debts that grow rapidly due to the high interest rates on revolving credit.

Therefore, when using the card, it is always best to consider it as a temporary extension of your budget, and not as additional income.

3. There is a mandatory minimum limit by law

A curiosity that few people know is that there is a specific regulation on the minimum invoice value.

According to the Central Bank's rules, the card issuer is required to offer, at a minimum, payment of 15% of the total amount of the invoice so that the customer can continue using the card in the following month.

However, this practice can lead the consumer to fall into the dreaded revolving credit, which has one of the highest interest rates on the market. Many people are carried away by the ease of paying only the minimum amount, without realizing that they are accumulating debts with compound interest.

Therefore, one of the 5 interesting facts about credit cards The one that deserves the most attention is this one: paying the minimum amount may seem convenient, but it costs a lot in the long run.

If you need to pay an invoice in installments, it is more worthwhile to negotiate directly with the issuer to find an option with lower interest rates than to automatically enter the revolving credit.

4. Cards May Offer Little-Known Insurance and Benefits

Did you know that many credit cards offer extra benefits that most users don't even think about? This is one of the most advantageous curiosities about credit cards, and can be used strategically by those who want to get more out of the product.

Some of the benefits include:

• Free International Travel Insurance
• Price and purchase protection
• Warranty extension for purchased products
• Access to VIP lounges at airports
• Discounts on cinemas, restaurants and mobility apps

Generally, cards linked to the Mastercard, Visa, Elo and American Express brands offer exclusive platforms to consult and activate these services.

It is essential that the user reads the card agreement and accesses the issuer's digital channels to understand the rights and benefits available. You may be missing out on benefits that are already included in your package at no additional cost.

5. Your Card Can Be a Factor in Loan Approval

The last of the 5 interesting facts about credit cards involves something that many consumers do not directly associate: the card can be used as an analysis criterion for granting loans, financing or increasing credit.

Financial institutions consider your card usage history to assess your risk profile. If you use your limit responsibly, pay your bills on time and maintain a good relationship with the bank, this increases your credit score and makes it easier to obtain future credit.

On the other hand, delays, constant use of revolving credit and very high installments may indicate a lack of financial control, making it difficult to approve new products.

Therefore, more than just a form of payment, the card is also a tool that can impact your financial history in the long term. Knowing this is essential for making informed decisions.

How to Use These Fun Facts to Your Advantage

Now that you know these 5 interesting facts about credit cards, it's time to reflect on how they can help you improve your relationship with money:

• Understand your limit and don't see it as extra income.
• Avoid paying the minimum amount on your bill to avoid high interest rates.
• Enjoy all the benefits offered by your card, such as insurance, cashback and points programs.
• Use your card responsibly to build a good credit history.
• Research your current card or consider switching to another one with more benefits and lower costs.

Information is power, and the more you know about the details and behind-the-scenes of your credit card, the better your financial decisions will be.

To the 5 interesting facts about credit cards The findings presented here reveal that this small piece of plastic goes far beyond its payment function. It is the result of an innovative idea, has specific rules, offers strategic advantages and has a major influence on your financial profile.

Knowing this is essential in times when consumption has become so easy with the digitalization of payment methods. By better understanding how the card works and the impact of your choices, you can turn this resource into a true ally, and not a trap.

That's why, reflect on how you have been using your card currently. Is there anything you can improve? Are there benefits you could be taking advantage of? Are you making the mistake of only paying the minimum amount on your bill?

Starting today, with these curiosities in hand, it is possible to change your relationship with your credit card and use it to your advantage.