The use of credit cards as a means of payment has been widely utilized. The way to get it fairly easily. Using it wisely can make a credit card as a helper of your finances. But if not careful, your credit card can make a huge debt that will destroy your finances.
Knowing Credit card
Credit cards were first introduced in the 1920’s in the United States. At first people called as plastic money. Later plastic money or credit cards attract the attention of people around the world.
Then in 1985, introduced a credit card with an exclusive holographic sophisticated. Holograms on credit cards are made with the visible laser beam three-dimensional shape. In addition, the credit card given other security features, including special codes in the magnetic lines form behind him to mark the invisible visible under ultraviolet light. There’s also given a photo credit card owner. The goal is to avoid fraud and misuse of credit cards.
Although using credit cards more freely and easily, but to remember is to use a credit card just like you owe. When buying something, you do not need to spend money but enough to swipe a credit card. Purchase transactions are conducted within a period of one month accumulated a total of bills to pay. On a certain date each month to the maturity date is the date by which you paid the bill. Previously, invoices will be sent, which contains details of the transaction date, the total bill and the minimum amount to be paid.
Benefits of Credit Cards
Credit cards will be very useful especially in times of emergency when we do not have the cash. For example, when I had to pay the hospital. Credit cards give up to one month for repayment. So if we do not have cash, we can still pay the hospital fees and credit card bills paid after receiving a salary or if we can have payments for some time.
By the time you have to transact online, one of the most popular payment is by credit card. Another benefit is when you have to go to a place that is not wise to carry cash.
You can also take advantage of promotions from credit cards to get discounts at a particular restaurant or while shopping at a particular place. If the purchase is an important and necessary course you will benefit from the discounts obtained. But this needs to be examined properly. If not, will make us be wasteful to buy things that do not need or dine at the restaurant for being attracted to the discount given.
Dangers of Credit Cards
Because of its simplicity and no need to spend money when we buy something, often we are too busy to shop regardless of how much total money that was spent. In addition, because it does not use cash, making the total purchases do not seem large compared with the cash shop. We seem to still have a lot of money because of unused cash.
However, if you do not pay in full the total bill is ready for danger awaits you. While you will be able to pay the minimum amount which is usually for 10% of the total bill. However, its shortcomings will be counted as a debt to be paid and interest is very large. As a result, total to be paid would be enormous and will continue to bloom, so the amount to be paid will become swollen.
If you have not paid off for some time, the bank will bring abusive debt collectors who will force you to pay these arrears. Many credit card users end up having to sell his property to pay off debts that swelled due to credit card interest. Pelu known, that the interest rate most credit cards than other types of credit.
Credit cards are also often used in fraud. Someone or some institution might fool you with a variety of ways to get your credit card number. Furthermore, they will make a purchase or making money with your credit card number that will be charged to you as the owner of a credit card.