This question seems easy, but we often disadvantaged because they do not even care about the usefulness of credit card or debit card. Or at least, not be able to enjoy the facilities offered to the maximum.
For example, some people use credit cards exclusively to pay expenses. They consider it more secure manner. Through some banks, they can collect cash back or points incentive. However, this strategy requires precision and intelligence in use so that debts can be paid in full or in full at the end of the month. If not, your debt will only increase.
If you use a debit card, you can only shop according to the remaining balance on your account. In fact, you should leave a few dollars after deducting the balance of the purchase. If the balance is not sufficient, you can not shop. That is, you can only afford to shop.
Before you can use the facilities on offer as much as possible and avoid the costs that you do not need, you should consider when using a debit card and when to use a credit card.
Use a debit card when:
Buying something expensive or can not be consumed
You run out of milk for children and some other household needs. Instead of wasting time, you come to a mini home from the office. However, you’re not carrying cash. Now, use your debit card as a mini usually apply a minimum purchase value is not so high. Do not use credit cards for purchases that are not too much or for goods that are consumed because you will pay more when you are late paying.
Need some quick cash
If you suddenly need cash, use your debit card. For BCA debit card holders, for example, you might as well take the cash in the cashier when you pay for your groceries at the minimarket. Intake of cash like this generally do not incur additional costs, either by banks or by the merchant. The amount of cash withdrawal merchant is determined by the availability of funds, but generally the average limit of Rp 500,000. Compare with if you make cash withdrawals using a credit card. For Citibank credit card (all cards), for example, you will bear interest at 4 per cent of the amount taken.
Use a credit card when:
Either buy a plane ticket or shopping at Amazon.com, you will be asked to pay via credit card. This is reasonable because credit cards offer greater protection in case of fraud (fraud or embezzlement).
Buy something expensive
Some credit cards offer additional warranty protection beyond the manufacturing of the products you buy. In addition, several bank credit card providers often also working with the merchant for promotional programs, such as buying fitness equipment at special prices. There is also an additional incentive program or reward accumulation which can be exchanged with certain gifts.
Prove credit history
You need to prove credit history when you start using credit cards and stop using it. Do this by buying an item with a credit card, and paid for at the end of the month, or by paying the minimum payment. If your record is good, your opportunity to improve your credit card limit or qualify to use the Platinum card from another bank.