Credit cards are no longer a rarity now, for those of you who don’t like to carry cash, credit cards are a fairly practical method of payment compared to debit.
Besides being practical sometimes there are many advantages to using a credit card, for example, usually certain shops or restaurants work together with banks to provide cashback or discounts on every purchase with their credit card, this will definitely be a profitable choice for you CC users .
The use of credit cards is not all profitable, it could be that you will actually get into trouble if you are not good at managing finances. Therefore it is wise if all credit card users understand a little knowing how to manage finances well, are not tempted to buy things that are not needed.
For you, users of a number of credit cards, it is better for you to think in advance of the risks that might occur because it will be increasingly difficult for us to manage and also control its use.
Too much debt
Practically using a credit card makes people just use it, even though the credit card is not a loan facility provided by the bank because every transaction made is a debt that must be paid during the billing period, not to mention the interest in each transaction and the annual fee that must be paid annually.
So use a credit card as needed, for example, you can use when discounted. Simply put, if payment can be made in cash, then you don’t need to use a credit card.
In accordance with the limit of your monthly income
Make sure the payment limit is in accordance with your monthly income or that the limit should be below your income. For example, your income is 8 million so make sure the credit card limit is 4-5 million, this is to more easily control excessive credit card usage, which causes payment difficulties when billing later, because your total income is not only needed to pay all bills from your credit card.
Too many credit cards
Avoid using more than 2 credit cards, even ideally each customer only has 1 credit card. With so many credit cards then you also have to try to control all expenses, if you are not careful then this will actually become a boomerang.
If you already have a lot of credit cards then it is better to close a number of credit cards that you rarely use, the amount of interest charged by banks, offers and features provided by banks, various fees that we have to pay, choose a credit card that you often use only and gives a lot of benefits every time you trade.
Think of profit / loss when you shop
Think about this before shopping with a credit card, is shopping done because of necessity or desire? because not all your desires are what you need and vice versa. Also make sure you get lots of benefits when using a credit card, if not, then you better use the cash method by paying in cash.
So here are the other things to think about before you use a credit card to satisfy your shopping desires, think first about its usefulness, is it important, useful, and the price is worth it or not.
Choose the credit card with the lowest interest rate
Before using a credit card, choose one that offers low interest rates, QuestPeak Bank sets the largest interest rate at 2.95%. Each bank will set different interest rates, first review the interest that is charged to you each year too.
Make payments on all purchases that you make and also various other costs that arise on our credit cards such as interest and annual fees. Do not let a number of debts and arrears make our credit score bad in the eyes of the bank.
Obviously credit cards are indeed used by banks to make it easier for customers to make transactions more practical, but unfortunately many people are trapped in easy transactions without regard to the risks that will arise because of the debt that grows as you spend more often.
If you are not a person who can control yourself when shopping, we recommend to learn tips for managing finances correctly or if necessary you don’t need to have a credit card.