You must have often heard of the dangers of using a credit card. One of them is in debt. This can happen if you are negligent and do not fully understand the benefits of credit cards.
To prevent this from happening, you need to know how to use credit cards in a smart way.
How To Maximize The Use Of Credit Cards For Beginners To Be Useful And Profitable
If you know how to use credit cards wisely, credit cards can be very profitable. Here are nine ways to maximize the use of credit cards:
1. Choose a credit card according to your needs
The first smart way to use a credit card is to choose a credit card carefully. Because every credit card has a program or function that is different from one another.
There are a number of credit cards that prioritize points and refund programs for their customers. Some also offer discount programs at certain outlets or at certain merchants.
For example, if you enjoy shopping, choose a credit card that offers loyalty points every time you shop. Another case if you are a fan of cashback. Choose a credit card that offers large refunds and works with multiple merchants. Or, for those who like to travel, choose a credit card that often gives big discounts on travel tickets. Therefore, the credit card that you use will be more leverage.
2. Take advantage of the discount
One of the main benefits of using a credit card is that it offers a 0% setting for relatively expensive items. For example laptops, cellphones, dining tables and other items. This structure can help you not to spend a lot of money at once.
Usually, credit card issuing banks offer installment payment programs within a certain period of time, such as 3 months, 6 months, 12 months. By using this program, you can adjust your pocket according to your ability. If you can use it, you know how to smartly use a second credit card.
3. Use a credit card when buying online
Using a credit card when shopping for various needs can help you maximize the use of a credit card. One of the advantages is that you can get reward points or cashback offered by the credit card issuing bank.
But remember, to get this benefit, you often need to ask about the rewards program from the bank that issued the credit card you are using. You can obtain this information via the Internet or by contacting the customer service of the credit card issuing bank directly.
What should be your assessment? Do not overdo it when using a credit card. Use as needed. This will affect you when making payments when they are due at a later date. You definitely don’t want to get into credit card debt, right?
4. Credit payment by credit card
If you have monthly payments such as a house, car or apartment, you can use a credit card to pay your monthly payments. If your credit card issuing bank has a payment schedule, this will greatly benefit you.
But first, you must first ask which bank issued a billing credit card that provides points or rewards. Because not all bill payments offer a points program.
5. Take advantage of multiple bill payment features
By using a credit card, you can take advantage of several bill payment features. Call it electricity, telephone bills, cable TV. The advantage is that you don’t have to queue at the ATM to make payments.
Also, no need to remember different customer numbers. With a credit card, you just need to register it with the issuing bank and the bank will pay all your regular bills every month. Practical, right?
However, not all credit card banks offer this service. Before making a request, try to check which payment instruments are available. This way you can combine all invoices for each month.
6. Suggest friends and relatives to use a credit card
If you want to maximize your credit card reward points, you can offer your friends to use your credit card. This can be done when planning a vacation with friends. Offer to use your credit card to buy a plane ticket or pay for a hotel. Just ask a friend to pay in cash.
Or you can pay the bill with a credit card when you go out to dinner with friends. Your friends don’t have to worry about paying at the cashier. The more credit card transactions you make, the more points you earn.
7. Be observant with credit card points
If you are a collector of credit card points, pay attention to the number of points. I’m afraid the points will be lost if you never use them. Pity? In fact, some banks set a point redemption time.
We recommend that you redeem your points immediately before the end of the redemption period. It’s important that you don’t get into credit card debt because you want to chase points.
8. Buy plane tickets online
The smart way to use an eighth credit card is to order tickets online from a smartphone. If you travel a lot and book online, opt for the Airmiles credit card. This way you can collect airmiles points which can be redeemed for the next trip. It is funny?
9. Avoid credit card traps
The main requirement to avoid credit card bondage is to avoid arrears. It is also not recommended that you pay the bill only with the minimum payment.
Because if there is a delay you will be charged interest. As a result, any accrued refunds, awards, or points will be wasted, as their value can be used up to cover interest. Worse yet, the value even exceeds the bonus you get.
That’s How To Maximize The Use Of Credit Cards For Beginners To Be Useful And Profitable
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