Credit Card Usage Is Important Provided you Know the Right Way to Use It
Make sure the payout limit is consistent with your monthly income or it should be below your income. For example, if your income is $ 8 million then make sure your credit card limit is 4-5 million, this is easier to control over your credit card usage which will make it difficult to pay in the future since your total income is not only required to pay all credit card charges.
The same goes for the monthly spending budget. A monthly spending budget should be available for you to have a benchmark to secure your finances. Let’s say $ 10 million in revenue. Set aside $ 4 to save. The remaining $ 6 million is available for you to spend, including by credit card. Credit card shopping is a must, too. Don’t forget to use it.
Think of Profit / Loss While Shopping
The next proper use of a credit card is that you have to think about the profit as you shop. When shopping with a credit card, think back to whether the items you purchased were just for your convenience or just a wish? Because not all of your desires are what you need and vice versa. Make sure you also get a lot of benefits when using a credit card, otherwise, you might as well use the cash method by paying it in cash.
Select Credit Card with Low-Interest Rate
Prior to the use of the right credit card that offers low-interest rates, BI (Bank Indonesia) set the largest interest rate of 2.95 percent. Each bank will set different interest rates, so it is advisable to do some research on how much interest will be charged each year. Make sure you know the number of additional fees that must be paid, such as late fees, cash advance fees, and other costs incurred on your credit card.
That way, we can think twice before using a credit card for the extra expense. Don’t let too much debt and delinquency make our credit score bad in the eyes of banks.
Understand the Terms and Conditions
This is usually the case, but it is one of the most important for proper credit card usage. Terms and conditions must be carefully read and understood in order to avoid misunderstandings in the future. In many cases, credit card owners are desperate to write letters to the mass media because they feel they are being charged extra for interest. Whereas the calculation of interest is in accordance with the terms of the bank.
Pay Full Charges
While there is the option to pay a minimum of 10 percent of your total charge, full payment is a credit card use. Always pay your bills every month yes, buddy. This is useful for keeping cash flow in the account smooth.
The minimum payment will lead to a larger charge next month. Because the flowers are considered to be pretty big too. It would be more dangerous if you paid the minimum amount each month. It’s like you’re digging your own grave. It should be good to be a cripple.
Do Not Transaction Close To Credit Card Limits
The general formula for keeping your credit card healthy is to use it 70 percent of its limit. Let’s say the $ 10 million credit card limit. Make a monthly payment of up to $ 7 million with that credit card. It would be nice if it didn’t reach $ 7 million. This is useful in preventing overcrowding. If you, for example, have used $ 9 million before the date of the charge and suddenly there is an urgent need for credit card use of US $ 2, then you have to break the credit card limit. That’s why we should not deal with the limits.
Don’t Make Suggestions
While credit card functions can serve as a backup, you should throw away that thought. Credit cards are just a payment tool that facilitates cashless transactions. If you want to use it for a large amount of emergency, make sure you pay it off when the charge arrives. If you can’t be sure, it’s best to use other options, such as applying for a home equity loan (KTA) to your bank or online loan.
Too Many Credit Cards
To maximize your credit card usage, avoid using more than two credit cards, and ideally, everyone only has one. With a lot of credit cards then you should also be able to control all your expenses, if you are not careful then this is a boomerang.
If you already have a lot of credit cards then it’s a good idea to close down some of the most commonly used credit cards, bank interest rates, bank offers and features, all kinds of fees we have to pay, just pick a credit card you use often and gives you a lot of benefits when you transact.
Use Credit Card Wisely
Well, Dude is why it’s so important for you to be smart about using a credit card. Because if we are wrong we can fall into a deep debt gap. Worse yet, we could be in total bankruptcy so the financial situation of the family would be ruined. Of course, you don’t want that to happen, do you? Therefore, let’s be more careful and wise in using it to make a profit. You can also take advantage of the promotions your credit card offers, too!