Want to Avoid Credit Card Problems? See Smart Tips for Using It
As a substitute for cash for transactions, credit cards offer a variety of benefits that can support your lifestyle in today’s digital world. Whatever you can get and do easily with almost no obstacles. No doubt if a credit card is often dubbed as a magic card.
Because of the convenience it offers, sometimes credit cards are often misused. Like to satisfy the endless appetite of shopping to the difficulty to pay bills and finally get into debt.
So as not to arise problems, then you must overcome them by becoming a smart customer. Want to know what it looks like? Check out the following review to complete.
1. Limit Usage
Despite offering many conveniences and advantages, credit cards also actually have limitations that are the limit or the maximum limit of use. Each card has a different limit depending on the type of card chosen when it was first created.
To be a smart customer, use a credit card properly and do not exceed the limits. Determine the maximum usage limit of only 60 to 70%. So Ana is not burdened with high bills and interest and learns to manage credit cards wisely. Always cultivate discipline and use appropriately, don’t overdo it.
2. Two Cards Are Enough
Each credit card has different features and facilities, so if you only have one credit card it’s not enough. But having a lot of cards in your wallet is not a smart way because it is actually harmful and makes you mess around with the bills. Even if you are not used for transactions, you are still subject to mandatory fees.
So it is less intelligent if you save too much because it is the same as increasing debt. But before choosing which card to close, choose a credit card that offers full features, reasonable interest rates and often offers many attractive offers.
And a credit card is still a credit card that must be paid, so if you don’t want to bother paying a lot, then limit it to a maximum of two.
3. Maximize the Point Rewards Earned
Have a credit card, don’t just keep it in your wallet, but take advantage of its advantages. Like cashback or rewards points if you diligently trade using the card. Smart transactions make credit cards provide a lot of pleasant benefits.
When the transaction points have been collected try to exchange them with rewards. There are also credit cards that directly provide cashback and discounts when shopping at certain outlets or supermarkets with terms and conditions applied. So use the benefits intelligently to further alleviate you.
4. Immediately Pay Bills Before Maturity
Not only does it make your name as a creditor even better, paying your bills on time will also keep you from fines and increased interest costs.
Even more so if you pay off bills well before the due date, for example before the transaction is booked and not even bears interest charges.
Therefore be disciplined and timely pay bills not to be late let alone not pay bills for months.
5. Avoid Minimum Bill Payments
When you cannot pay your credit card bills fully, you can still pay bills with a minimum payment. Usually the minimum payment amount specified by the bank is usually 10% of the total bill to be paid.
But don’t be happy because you don’t have to pay the full bill and get a fine. Because when you only pay the minimum payment, the remaining credit card debt balance will actually continue to increase.
It’s good to pay the bills in full at least half and avoid paying the minimum payment. For this reason it is important to allocate a portion of salary or income to pay credit card bills, not to be confused if they are due.
Have Many Responsibilities, Be Wise Using Credit Cards
Understanding how credit cards work is very important because there are many benefits that require responsibility from you as a user. Get to know what it is and use it well then take responsibility for its use. Smart in managing will reduce the risk of using bad credit cards that are less responsible.