Credit cards are a form of cash replacement payment card issued by a bank to facilitate customers’ transactions. Most people will be very happy when you first receive your credit card, as it will help you with certain needs.
When you get a credit card the various plans to use it begin to come to mind. But, of course, it’s not far from shopping, eating out at a restaurant, or buying something you’ve always been craving. Things like this come to mind and make it fun. Getting a credit card for the first time seems like a daunting struggle and ends with fun even with a few friends or co-workers.
Even if a credit card has a lot of facilities, you should use it wisely. If you misuse it, you may fall into a deep debt gap. Worse yet, it can result in total bankruptcy so your financial situation is ruined, of course, you don’t want that to happen.
For that, you have to be smart about using a credit card. What are some things to keep in mind before applying for a credit card?
Credit Cards and How to Use It Wisely
Before you apply for a credit card, it’s a good idea to know how to keep your credit card charge low and don’t forget to use it. Here’s how to use your credit card wisely, including:
First, you need to set a monthly shopping buffet, this one should be available for you to have a benchmark for financial security. For example, earning $ 10 million, you can set aside $ 4 million to save, and then the remaining 6 million you can spend on shopping, including by using a credit card.
Credit card shopping should also be limited. In this case, the bank has helped to set a limit. But you should also set your own limit below the bank limit. To learn more about using credit cards for shopping.
Understand the Terms and Conditions
Understanding the terms and conditions is the most overlooked. While the terms and conditions need to be read and understood carefully in order to avoid any misunderstandings in the future. Many cases in the field of credit card owners have scratched the surface of writing letters to the mass media because they feel the burden of “stealth fees” on interest rates. Whereas the calculation of interest is in accordance with the terms of the bank.
Also, make sure we know the additional costs you have to pay, such as late fees, withdrawal fees, and other costs. That way, you can think twice before using a credit card for the extra expense.
As Possible as Full Payments
While you have the option of paying a minimum of 10 percent of your total bill, make a full payment every month. This is useful for maintaining cash flow or cash flow in your account.
The minimum payment will lead to a larger charge next month. Because there are flowers that can be counted too big. It would be dangerous to pay the minimum amount each month. This means that we are in danger of losing ourselves by continuing to accumulate debt.
Pay your bills
Most credit card users just pay the bill once they get a letter from the bank. They should check the charges first. Knowing that there is a transaction fee that you don’t make but charge in your bill.
By being careful, you are making sure you do not fall victim to credit card abuse by others, especially internal banks. If you have any peculiarities in your charges, contact your bank immediately that day for a complaint.
Don’t Leave Outstanding Balance Unpaid
Outstanding balance comes up when you don’t pay the full bill in a month. Next month, an outstanding balance will appear. If you don’t pay in full that month, this debt will swell in the next month.
If you can’t pay this month’s bill, try paying it off the following month. Because the outstanding balance of interest can grow beyond the limit if left unpaid for long.