Here are 10 Wise Ways to Use Credit Card so You Don't Use it Wrong

credit card

Credit cards are still one of the most popular means of payment transactions for many people. The reason is not only practical and easy but also because of the benefits or facilities offered.

Many other attractive promos and offers that you can enjoy. If used properly, credit cards can provide maximum benefits.

If you are a newbie credit card user, you must already have shopping plans and other transactions. Actually, it is not wrong if credit cards are used wisely.

The problem is when the credit card is overused. You become dependent on credit cards. This will create a big problem for your financial condition.

Lots of debt claims, so it becomes a financial burden. Every month the salary is used up to pay these bills, because of the extravagant nature of using credit cards.

Here are some wise ways that novice credit card users need to be aware of:

Avoid paying minimum bills

Credit card issuing banks generally set a minimum payment of 10% of the total bill to be paid. As a result, many users can not escape from the minimum bill payments or minimum payment is. Even though this method of payment has a big risk. Your debt will mount even more.

Because when you only pay the minimum bill, in the following month you have to pay 10% of the total bill, plus the remaining previous credit card debt, plus interest. If it is not paid in full, it will continue to be calculated like that.

We recommend that you pay your credit card bill in full. If you want minimal, that's half, not just 10%.

Think repeatedly withdrawing credit card cash

Credit card cash withdrawal facilities are very tempting. The method is also easy, just go to the ATM, you can immediately withdraw cash using a credit card. Or at a merchant's EDC machine.

So there is no need for various conditions to apply for a loan from the bank if you are in urgent need of funds. If you withdraw cash, you will be subject to quite large interest and administrative fees. The maximum cash withdrawal interest is 2.95% per month.

While credit card cash withdrawals are usually charged at 4%. The fee is charged immediately upon withdrawal.

We recommend that you take advantage of the credit card cash withdrawal facility wisely. For very urgent needs, for example in an emergency. Make sure the cash withdrawal amount has been estimated or calculated in advance with your ability to pay.

For advice, it's best if you still have a balance on your debit card, then prioritize cash withdrawals with a debit card to avoid large and multiplying fees and interest.

Combine credit card and cash

After having a credit card, a habit that often arises is shopping for anything so addicted to using Credit Card.
Buying basic necessities at supermarkets, minimarkets, coffee snacks, eating at restaurants, to replenishing digital wallets, all use a credit card. Even though there is a debit card, it is rarely used.

Habits like this make credit cards broken. Without realizing it, its use has approached or over the limit.
For daily shopping or for a small amount, such as paying for car parking or others, it's better to use cash. Could not be worth the debt installments that you have to pay later.

If you want to shop monthly, just use what you need. For example, it is used when there are discount promos, 0% installments, and other offers. So you can save more, not be too wasteful.

Avoid paying other debt installments

Credit cards should be avoided for paying debts, even in emergencies. For example, the payment of Unsecured Loans, Multipurpose Loans, Motor Vehicle Loans, and Home Ownership Loans.

This habit can make you trapped in debt. Because when paying debt using a credit card, you must pay off the principal debt plus interest until it is paid off.

Other debts still have obligations that must be paid, so your debt is multiplied. If you are late, you will be fined. The number of bills that must be paid will be even greater.

Pay bills on time

You need to check your credit card bill for the due date. Late payments will result in fines and interest costs, all of which will make the bill even bigger.

Avoid this in the right way, by activating reminders ( alarms ) or auto-debit from payroll accounts, so that you can make payments on time.

Use within your limits

Your credit card has a limit. The value can exceed the monthly salary. If you use it haphazardly, swipe here and there, then you can unconsciously exceed your ability to pay.

If you have experienced this condition, you will only be carried away with debt problems that will make it difficult for finances in the future.

Don't spend your credit limit

Even though you get a credit limit that is quite large and still available, that doesn't mean you have to spend it. Forcing yourself to spend your credit limit is a big mistake, especially if you use something that is consumptive, it is not important.

Not only not optimal, but also at risk of triggering financial problems due to a fairly large credit card bill.

Always make a shopping plan

Unplanned shopping or "accidents," can always happen. Whether it's when you are traveling, on vacation, even when visiting online shopping sites.

Without realizing it, you've bought so many things. This can actually make you wasteful, then you have a headache to pay the installments.

For that, always make a plan or list before shopping. So that credit cards are only used to buy items in the plan.

Close credit cards when needed

To avoid a worse shopping mistake, billions of swelling, give up using a credit card, or because you don't want to have a lot of debt, it's better to just close your credit card.

Want to close a credit card? Just come to the bank. You will be free to convey your intention to close the credit card. Mention reasons that make sense, not making it up.

Alternatively, make a written request that is submitted by fax or email to the issuing bank. You can also make a request by a telephone recorded by the credit card issuing bank. The recording of the conversation has also been confirmed to the user.

Avoid lending credit cards to anyone

Whatever the reason, never lend your credit card to other people. This is to prevent theft or theft of funds.
Because you need to maintain the confidentiality of your credit card CVV. CVV is a digit number as a security feature that is usually found on VISA and MasterCard credit cards. Usually consists of three numbers.

Take advantage of Credit Cards for Emergency Funds

In the midst of a pandemic, it's best to save money. Fasten the belt because the economy is sluggish. Use credit cards wisely, such as the need for emergency funds for hospital expenses when finances run low or your savings balance is zero.

Save credit cards when unnecessary to prevent you from shopping without a plan.

1 Response to "Here are 10 Wise Ways to Use Credit Card so You Don't Use it Wrong"

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