The use of credit cards as a means of payment has been used. How 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.
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 exclusive hologram sophisticated. Holograms on credit cards are made with the visible laser beam three-dimensional shape. In addition, the credit card given other security features, such as special codes in the magnetic lines form behind him to mark the invisible visible under ultraviolet light. There are also credit cards are given the image. 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 simply 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 particularly useful 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 the promotion of 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, would be wasteful to make us buy things that do not need or dine at the restaurant because they are attracted to the discount given.
Danger 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 for unused cash.
However, if you do not pay in full the total bill of the hazards await 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 to swell due to credit card interest. Need to know, that most credit card interest rates than other types of credit.
Credit cards are also often used in fraud. A person or 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 will be charged to your credit card as the owner.
Wise Tips to Credit Cards
Flexibility and variety of benefits offered by credit card partially offset by the danger of either temptation to buy and live beyond the capability. It is also the danger of abuse and credit card fraud. Given the danger behind the use of credit cards, then the wise what can you do?
Do not have too many credit cards
Having many credit cards will cost you to pay annual dues and make you tempted to spend more. A maximum of 2 credit cards a must-have. If you have more than that, you should immediately close the other credit cards. Consideration in choosing a credit card which will be maintained including interest rate credit cards, credit cards and limit the benefits offered by credit cards really useful for you.
Budget funds for credit card
In preparing the budget, enter the maximum amount of funds that may be used by credit card.
Noted that purchases by credit card
With a record will help you find out how much you should pay so that will help you to ‘brake’ next purchase. These records can be matched with invoices to determine whether you actually made the purchase.
Try to always pay the full bill
This is useful so that you are not burdened by the enormous interest. Do not be tempted to just pay the minimum bill. If you already have a mortgage or credit card debt, prioritize earnestly to immediately pay off your debt by being more efficient. For example, by reducing the visiting cafes, shopping or eating out. If you are boarding or renting a home, consider whether you could move somewhere else cheaper.
Avoid using credit cards to withdraw cash
Credit cards can be used to withdraw cash at an ATM, but it is not free. You must pay interest on the cash withdrawal value even higher than the rate for purchases.
Beware of credit card fraud
Mode of credit card fraud increasingly diverse either by phone or Internet. So, keep careful not notify the credit card number, expiration date, or other information to strangers. Do not lend your credit card to someone else.
Do not let your finances get worse with the credit card debt. Use a credit card wisely so that your finances remain strong.