Smart Tips To Use A Credit Card

In this fast and easy era, credit cards make it easy for us to shop and make transactions to meet our daily needs and lifestyle.

Along with the rapid advancement of technology and the increasing number of the middle class population, this has led to an increase in people’s need for credit cards.

Credit cards provide a variety of conveniences in life. Why? Because this magic card can allow you to shop without having to have money in your account or wallet.

But, of course you also need to understand and be wise in using a credit card. Because, behind all the conveniences offered by a credit card, it can make you forget your real financial condition.

Credit cards can make your life and finances easier as long as you use them wisely. Not the other way around, avoid being greedy, forgetful and wasteful when shopping with a credit card because this can potentially leave you in debt, bankrupt and fall into poverty.

So that you understand more about how to maximize the use of your credit card, see how smartly to use a credit card.

1. Have a Credit Card As Needed 

Credit cards often collaborate with merchants, e-commerce,  supermarkets, restaurants, hotels and tourist attractions. Thanks to this collaboration, there are many discounts, promotional prices, discounted prices and 0% installments that can be obtained when paying using a credit card transaction.

This is one of the benefits or benefits that can be enjoyed directly by users. In order to maximize the use of credit cards, you should have a credit card that suits your needs and lifestyle.

For example, if you tend to frequent and really like culinary delights, then choose a credit card that provides a lot of culinary promos. Conversely, if you like fashion-related things, choose a credit card that provides a lot of fashion shopping promos.

Also read 12 Credit Card Fees You Need To Know.

2. Have a maximum of 2 credit cards

Although credit cards provide many conveniences and can make you more economical when shopping, it is recommended that you only have 2 credit cards.

Why is that? This is simply because having multiple credit cards can potentially make your finances messy and unhealthy. The thing to worry about is that you will have a lot of debt, and if you are unable to pay it off, this could lead to a bad Bank Indonesia (BI) C hecking score  .

BI Checking  is Historical Individual Debtor Information (IDI) that records whether or not credit payments have been successful. Now the name BI  Checking  or SID (Debtor Information System) has changed its name to Financial Information Service System or SLIK.

Also read  Characteristics of people who are addicted to credit cards, are you one of them?

3. Set Credit Card Limit

Ideally, with just two credit cards, you should be able to meet all the necessities of your life and lifestyle as long as you are good at managing it.

Understand, every credit card has a credit card limit that you can set according to your abilities and needs.

The smart way not to go too far in using your credit card is to set one credit card with a small limit and another card with a larger limit. You can use a credit card with a larger limit for use that is emergency or something that requires a large fee.

In this way, it is hoped that you can manage your expenses better and wiser.

4. Determine the Budget for Credit Card Usage

Every credit card has its own limit, always try to use a credit card below the predetermined limit.

For example, your credit card limit is IDR 5 million, it will be better and safer if you don’t use it up to IDR 5 million or even more. Because the size of the limit does not indicate that you have to use it to the maximum.

Note, don’t use a credit card until it exceeds the specified limit, because you will be subject to fines. Realize the ability to pay and finance, start using credit cards wisely.

For that, make a shopping budget with a credit card. For example, on a budget to shop for vitamins to increase immunity, you can start listing vitamins and their prices. When you have a budget and a shopping list, this will make you more focused on shopping and not tempted to shop for other things you don’t need.

5. Think Carefully Before Shopping

Shopping can be done out of necessity or desire. Not all your desires are the things you need and vice versa.

Try to think long before shopping. This can help you not to become consumptive and wasteful. Because, it’s not uncommon for us to buy something just because of passion or a temporary desire that you don’t really need or want.

So, before you use a credit card to satisfy your shopping desires when shopping online and offline, it’s best to think carefully. Ask yourself whether the item you are going to buy is useful, needed and important, or vice versa.

6. Monitor and Use Reward Points

Whether you realize it or not, every time you shop using a credit card, the points on your credit card increase. The large number of points that have been collected can be exchanged for attractive goods or promos.

This point exchange is one of the advantages of a credit card, but you must be careful and observant in monitoring and using your reward points. With the existence of reward points , using a credit card is even more profitable and fun.

Start Practicing, Use a Credit Card Wisely

Those are some smart tips for using a credit card. Start practicing immediately so that your finances are healthier and more profitable when shopping using a credit card.

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