The primary function of a credit card and how to use it Wisely

Almost everyone wants a simple life patterns and also practical, where everything can be walked easily without constraints. This of course can be walked due to the wide variety of technology and also a variety of facilities that we can count on, so anything we can do easily and practically without a hitch.

Various progress also we can enjoy in the banking world, currently we can easily access a wide range of advanced facilities provided by the banking world. It's certainly greatly facilitate and make a lot of financial affairs become more easily resolved. Banks compete to provide a variety of services that can provide convenience for our customers, this gives rise to a positive effect and cause the scent of healthy competition among banks that existed in Indonesia. As a client, you just have to enjoy and choose the best service only, easy isn't it?

Credit card and its function

The tight competition between business banking, make each bank always strives to provide the best service for our customers. Various products were launched to meet this need, one of which is credit card.

A credit card is an official means of payment provided by the bank to its customers as a form of facilities, where in the facility the bank will implement a number of policies and also the rules that will govern regarding the rights and obligations of both Parties (client and bank).

Credit cards have a number of funds (limit) in it, which is the amount determined by the bank as the Publisher. It lets the customer can use a credit card to perform various financial transactions, be it for purchases or cash withdrawals at ATM machines in certain amount specified by the bank. Outside both functions, credit cards also usually come with a wide range of attractive offers and also programs drawn up by the bank as a form of promotion for the card. It is considered important to do, considering that currently there is an awful lot of the bank which issued the credit card in their service, this certainly raises a pretty tight competition among the banks.

As a facility of payment issued by a bank, then it can be ascertained that the client does not have its own funds in the credit card, which means: all bills incurred in credit card debt from someone is a person to the bank which issued the credit card used. That way, all the Bills that have emerged in the credit cards have to be paid by the customer using a credit card. In this case the bank only make payments in advance of spending carried out by its customers, Furthermore all bills incurred will be invoiced at the time of billing, and paid by the customer at the time of before the due date specified by the bank.

And then, what if the Bills are not paid by the customer? To cope with this kind of thing, the bank certainly has implemented a number of policies in their service, where any arrears that arise will be subject to a number of flowers and also other fees, such as late payment fees. It is a form of consequences of bill payment that is not a full and timely manner.

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How To Use Credit Cards Wisely

Given the existence of a number of cost and also the interest applied by the bank, then the customer should always be careful in using her credit cards and pay the Bills. Do not use the credit card that was originally to facilitate a wide range of financial affairs, it would be a burden in financial customer in question. This certainly would be very detrimental.

The use of credit cards will require a strong commitment and also a high discipline, this relates to the pattern of life and also the way we manage finances. When a person does not have a good control in using a credit card, then it can be determined if the person will be entered into a puddle of debt and experiencing financial difficulties. The following are some points that can be applied in using credit cards effectively:

1. Limit the amount

Currently there are many types of credit cards offered by the bank, but of course you won't be needing any type of the card isn't it? Use only one or a maximum of two credit cards only, therefore make sure to recognize in advance you will need a credit card, so you can find the type of card that is most appropriate for your use.

Do not use something that is not beneficial to the maximum, this also applies in the credit card. The use of credit cards is intended to make it easier and also gives an advantage, so make sure you get both of those things from the credit card you use.

2. avoid credit card rather than cash

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Withdrawals ATM card, so we recommend that you do not use it in ATM machines, that do not use transactions for cash withdrawals. This will give rise to a number of charges in the Bill, for each cash withdrawal transaction you will be charged a 4% minimum or Rp50 thousand. Large numbers, isn't it?

It's not just the cost of cash withdrawals, you will also be charged the interest amount is around 3.5%-4% of the amount of funds You withdraw from your credit card. A number of these flowers will be immediately applied upon the cash withdrawal transaction you do, because the bank implemented a system of daily interest on transaction cash withdrawals, unlike flowers shopping transactions.

3. arrange and Follow shopping list

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When will use a credit card to shop, so it's good you compile a shopping list in advance shortly before doing so. This will prevent You from some sense of remorse shortly after arriving home, due to the swelling number of bills shopping that you do.

Do not shop at a time when You are angry or tired in those conditions, this will make you hard to concentrate and focus on what you will buy. Shopping is also quiet and relaxing, so you can think positively and comply with all rules as well as a shopping list that you have piles from the beginning. If you could implement this every time to shop, then the swelling credit card bills will never make you pissed off at the end of the month.

4. use Correctly

There are many benefits provided a credit card, and this would be very beneficial if you jelly to use it. Start is active in the following wide range of information and also a promotion held on your credit card, this can be either a discount or other attractive offers. If you can take advantage of the promotional moment like this, then you can downsize.

However, always remember that you only need to capitalize on promotions that indeed you really need, for example: discount shopping at the supermarket by using your credit card, meaning you can get a discount and monthly expenditures. Do not pursue the discount and buy something you need that is not so, this is a waste.

5. Get More Benefits

Some banks apply the reward system within their credit card, usually in the form of points can be collected and exchanged with various things, such as: certain items, annual dues, or even shopping voucher. Use Your reward points and do not dispose of it freely.

Use and pay on time

Basically, most people choose to use a credit card with the reason as a tool that will make it easier and also gives an advantage. But there are a lot of people are quite problematic and ultimately incurred a certain amount of debt. It is very important to choose the most proper credit card, so it's really useful. Use a credit card with full consideration and pay all the Bills with discipline.