Talking about the times, in the era of progress and technology that is growing rapidly. There are so many things or aspects in our daily life that also experience changes. For example, payment transactions, which previously only used the cash system, are now developing payment methods using credit cards. Which is certainly more efficient and practical.
Do you need a Credit Card?
Here we will discuss a little about credit cards. A credit card itself is a payment method that gives you convenience in making payments for your financial transactions. however, there are still many things that we must pay attention to regarding the costs and risks that may arise in its use.
Many studies prove that consumers will have a more or more consumer tendency to spend more when using a credit card than when they use cash. Therefore, before you apply for a credit card opening, think about your needs and how you will pay the credit card bill. Do not use a credit card to pay off your other debts. You can be tied to interest and other fees that will cost you more in the long run.
The use of the credit card itself is quite a lot and quite complete. Some of the facilities and uses provided by the bank that issues credit cards are usually different. Starting from the transaction limit and the amount of interest.
The function of the credit card itself can be as a means of payment. Credit cards are used as a means of payment, such as when shopping at modern shopping centers, or paying hospital fees, and they can also be used to withdraw cash at an Automated Teller Machine (ATM). However, recently this facility is limited.
Credit cards also have a function to pay bills from household accounts, such as water bills, telephone bills, electricity bills, and others. In addition, credit cards also function as financial preparation or backup.
If there is a sudden need for money that must be fulfilled, a credit card can be used. For example, when traveling or shopping, but our money is running low, we can use a credit card to cover the shortfall. Learn more
Several factors must be understood by credit card owners that can trap them when transacting. A credit card limit usually serves to limit the number of transactions in a month when using a credit card. This limit should ideally be five times the credit card holder's salary. This limitation, assuming a monthly expenditure of 40% and no other debt, can still solve the problem of credit card bills.
A large number of credit cards can be detrimental. Ideally, a person has one or a maximum of two credit cards if necessary. However, the regulator itself limits the number of credit card holdings. The time of payment (maturity) is often associated with the term interest-bearing. Interest will be applied by the bank to credit card holder customers if they do not pay the bill on every predetermined date.
However, the interest charged is only to pay the minimum bill every month. In order to avoid the interest charged by credit cards, make sure you pay the bill before it is due, and pay the payer in full to the store bill so that interest is not charged again. Therefore, we must learn more to understand the function of credit cards, we must be wise in using them so as not to harm ourselves.