Of course the credit card is no stranger to your ears. This non-cash transaction tool is indeed popular among the public. Evidenced by the increasing number of banks competing to offer credit cards, both via advertisements and outlets in the mall.
But unfortunately not everyone can get a credit card easily.
For example, someone who has a bad credit history, of course the submission is often rejected by the bank. Especially if you are just making a credit card for the first time.
If you are lucky and get your first credit card, you have to know how to use it so that it doesn’t end with debt debt.
Because there are still many who mistakenly use credit cards more than their financial capabilities.
Well, Capiloan will inform what things need to be considered when you have a first credit card so you don’t get caught in debt. Let’s look together:
Keep Your Credit History
To the point , where are there banks that want to provide loans or credit cards to customers whose financial history is not healthy?
Banks certainly minimize the potential for bad credit, especially on credit cards that do not require collateral or collateral.
Thus, the bank will always check your financial history by looking at how your credit status has been.
If there are arrears or bad credit history, then your credit history will be considered bad.
This credit history will affect the needs of your future transactions, such as if you want to apply for a mortgage or motor vehicle.
Thus, it is important to check your credit history every year and fix it so that the credit score gets better.
Select the type of credit card
Credit cards are divided into two types, ordinary credit cards and ” secured ” credit cards.
On a ” secured ” credit card there is a certain nominal deposit.
This nominal will be used as collateral if the customer does not pay according to the agreement.
Generally this type of credit card is chosen by those who have just used a credit card for security reasons.
Take advantage of the benefits
Some credit cards offer promos or rewards that benefit customers. Among other things, the reward points can be exchanged for cashback , shopping vouchers , or discounted prices for subsequent purchases.
Before applying for a credit card, it is important to choose a credit card with features that are not only attractive, but also according to your needs. Why
This will affect the additional costs that you incur. Retrieving inappropriate features will only result in credit card benefits not being maximally utilized.
For example, if you are not married, of course a credit card that provides benefits in the form of shopping points in the supermarket is not an attractive offer.
Another case if you are married, monthly shopping is an activity that is routinely carried out.
In other words, the supermarket shopping points have become an interesting thing because it suits your needs.
In addition, not all info is given directly, so you must be diligent in reading promos or information that is usually delivered via short message / email .
Keep an eye on Flowers
The name is a credit card, there must be interest as a return for short-term loan services provided by the bank to you.
Well, generally every bank offers different interest rates, so it’s always careful in choosing a credit card.
If you have a credit card with a high interest rate, it never hurts to negotiate the interest rate with the bank.
Don’t just surrender to the situation and pay the costs you can actually save.
If the bank does not approve this negotiation, maybe it’s time you switch to another credit card.
But keep in mind also, usually interest is only applied if you are late paying or not paying the right amount (or maybe the minimum payment).
If you always pay on time and exactly the amount according to the monthly bill, then interest is not applied to your loan.
Pay the Right Amount and Be on Time
In credit card payments, banks generally determine the minimum payment amount that must be paid no later than at maturity, usually worth 10% of the total bill.
However, many credit card users do not know the consequences of making a minimum payment, namely the interest charged on the remaining outstanding balance.
You also need to know that usually late interest tends to be high so it is very dangerous for your finances.
Avoid minimum paying habits right now to prevent financial havoc!
Always pay according to the bill if possible. Unpaid bill balances will incur a substantial interest and will accumulate in the following months.
Moreover, late payments can easily damage your credit score so that your hard work keeping it up all this time can be damaged instantly.
In addition, late payments will be subject to substantial penalties and are usually the beginning of endless credit card debt.
Must Measure Finance
Before applying for a credit card, you should first measure your financial abilities.
If you apply for a credit card whose qualifications are not suitable, chances are that you will only accumulate debt.
If you are unsure of your financial capabilities, ask for a credit report from the bank to see your financial capability standards before applying for a credit card.
Especially for those of you who still don’t have your own income, holding a credit card can be a big problem. Because sometimes you issue without a “brake” without thinking about how to pay the bill later.
Pay Attention to Additional Costs
Before filling out the submission form, make sure you have asked about the annual credit card fees and other additional fees.
This fee is not too large, but it will still affect the expenditure, especially if you have more than one credit card.
You can choose a credit card that has the following characteristics:
- Free annual fees and administration fees
- Free of foreign transaction fees
So that you supervise its use and do not have to pay costs that harm you.
Always Check Limit and Monitor Use
Each credit card is generally given a certain limit. That is, you cannot use more than the limit. But often the limit is greater than one’s financial ability.
As a result, many fail to pay the exact credit card bill.
Therefore, always check the limit of your credit card and keep an eye on its use so it doesn’t exceed your ability.
If there is no urgent need that must be purchased with a credit card, then you should not need to use it.
Use of course does not have to reach the limit that is there every month.
Get to know the Usage and Payment System
Finally, always understand the system of use and payment. For example, you should know from the card limit, card benefits, when the payment limit, how to pay it, to the consequences of late or default.
By understanding the system well, you can use credit cards well too.
In the end, you can feel the benefits instead of being a financial burden and a pile of debt.
Using a credit card turned out to be not as difficult as imagined right?