If you are an employee who is the first time to have a credit card, you are certainly happy to be able to use the card for your needs. However, you should be wise in using it. Why? There are at least 3 reasons.
First, a credit card is a debt that you must pay off.
Second, credit card interest rates are relatively high each month (2.75 - 3%).
Third, credit cards can encourage you to consumptive lifestyles that impact your financial resilience.
The good news is that you can use credit cards wisely. To help you make it happen, here are 8 ways you should do.
1. Shop as Planned
Familiarize yourself to shop according to plan. Wherever they shop, your shopping plan will help control your spending. For example, from home you already plan to use a credit card to buy a treadmill. While at a fitness equipment store, focus on buying a treadmill. Focusing on a shopping plan is not easy. There is always a temptation that increases your buying desire. For example, health sandals promoted to buy one can be free one. If it comes to the head to buy the item, go back to your shopping plan and remember that you need money for other things.
2. Avoid Withdrawing Cash through Credit Cards
One of the convenience of a credit card is that it can be used to withdraw cash from an ATM. Nevertheless, reinforce yourself not to use the ease. The reason, the withdrawal of cash from credit card interest rate of 4-5% per month. If your finances are only enough for monthly needs, of course this interest will burden yourself.
3. Ignore the Merchant's Offer
Credit card issuers generally work with a number of merchants. These merchants have a number of clever ways to hire credit card owners to shop on their premises. For example, they send a special invitation with a certain prize. The owner of the credit card must come to the merchant's place to get the item. If you get a special invitation like that, just ignore it. Why? When you come to the merchant's place, you will be offered a variety of their products. Maybe you will buy one or more of their products because they feel uncomfortable already given free stuff. I have experienced it. However, I learned from that absurdity. Right now, when I get a special invitation from a certain merchant, I throw the invitation into the trash.
4. Take Advantage of Credit Cards to Save Money
If you are an employee who often travels out of town on business or personal, you can use a credit card to save money. For example, you can take advantage of the airport lounge reward facility of the card for a free meal at an elite restaurant at the airport. Although not free, you can get the promo price of the food. This is a risky way of consumptive lifestyle. However, it is slightly better and smarter than you eat in an elite restaurant without the airport lounge reward facility.
5. Check the Bill Carefully
If you already use a credit card to shop, you will get a monthly bill sent to your home. Check the bill carefully to see if there are any transactions you did not make. If so, please contact the customer service from your credit card issuer to file your complaint.
6. Pay Full Bill
Try to pay your full monthly bill before maturity. It will be better than installments. In addition, you can also manage your finances for other purposes (such as holidays or school fees) without having to pay monthly mortgage credit card payments.
7. Save Credit Card if Not Required
Credit cards should be used if needed only. Therefore, if you do not need it, keep the credit card in your home. In addition to keeping you from shopping without a plan, saving your credit card also prevents you from losing the card because your wallet crashed or stolen.
8. Limit Credit Cards Up to 2 Pieces
If you already have your first credit card with smooth transactions and payments, you'll get another credit card offer from the same issuer or another credit card issuer. If you need it, limit your credit card amount to a maximum of two. Why? Because if you have a lot of credit cards, you will spend extra money to pay annual dues and related costs.
Closing Statement
Credit cards will provide many benefits if you use it wisely. Try applying the eight ways above so you benefit from the credit cards you own, not the bloated bills each month.