Credit cards and ATM cards are two banking facilities that people love. However, they have a fundamental difference: paying using an ATM card cuts off your savings. While credit card payments are not reduced. Why is that? Check out the discussion below:
credit card summary
credit card or credit card It is a facility issued by banks to assist customers in paying for goods and services. Unlike ATM cards that customers use when paying for goods and services, they are not deducted from the customer’s deposit amount. but became a debt that had to be paid
This card is an attractive payment option because:
- Offer an interest rate of 0% up to a certain amount.
- can be used to pay for goods and services including those that require regular expenses such as electricity bills, water bills, etc.
- Can be used as an emergency fund
- Many banks offer special discounts to users. credit card (cc).
Today, this facility can be used to purchase goods and services such as electricity and water bills. Netflix and Spotify subscriptions, and even international payments.
How to use a credit card for beginners
1. Choose the right card
The first step is to choose. credit card The reason is that banks often issue a large number of CCs with their respective requirements and bonuses.
You can consider this requirement through various discounts. that the bank provides for card users On the other hand, the income aspect often affects the amount of credit limit you can get on the card.
Banks typically display all information about these products and services on their websites. Credit cards from trusted banks It will be beneficial for you because it guarantees the security of the transaction.
2. Apply for a credit card
The next step is to apply for a credit card. You can do this online or offline at the nearest branch office. to make this process go smoothly. Be sure to prepare the following prerequisite documents:
- Copy of ID card
- Minimum age 21 years
- Minimum net income or salary of Rp 3 million IDR per month.
- Salary slip.
- Slip NPWP
- Copy of the past 3 months passbook
- Last 3 months of credit bills if you have had this card before.
When all documents have been submitted You will be asked to complete and sign the form. After the signing process is complete It’s time for you to wait for the verification process performed by the bank. If the credit application is approved This card will be sent to your registered address. Instant activation to allow immediate use of the card.
3. Remember Two Important Dates
Next, you need to remember two important dates on your credit card: the billing date and the due date. The billing date is the time when the bank sends the credit bill to your home address or email address. Whereas the due date is the last day you have to pay all your bills. credit card you.
For example, ABCD Bank will send you your credit card bill on May 1st. Your bill has a due date on May 22nd, so all your transactions using CC will be charged on Day 1. May During May 1-22, you must pay all expenses. If you pay on May 23 only (After the due date) you will be charged interest and late fees.
4. Use a credit card
Credit cards can be used for online and offline transactions. for offline transactions This card is used by inserting it into the EDC machine and entering a PIN number like an ATM card for online transactions. You just need to enter your card number, CVV or CVC information into the credit card payment options provided by the online marketplace or paid subscription.
Things to be aware of when using credit cards
1. Due date
as written above Paying credit bills after the due date will incur interest and penalties. This interest and invoice will be even more. If in the next billing cycle You don’t pay all your credit card bills. The reason is that this card follows the concept of compounding effect, The longer you pay out The greater the value, the greater.
not only that Slow credit card bills also make you Your credit score in SLIK Worse yet, in fact, banks use this credit score to assess your ability to pay off your loan. Whether in the form of a loan through this line or in the form of other loans
2. Beware of Credit Card Scam Mode
The more complex the technology The more complicated the way fraudsters perform their actions, the more complex the way these people act. These methods range from phishing. Unknown calls claiming to be from banks until clocking
Phishing is a scam mode whereby you send a message with a link in the form of an email, SMS or Whatsapp. The goal is for you to click on the link. To allow fraudsters to access all of your personal information, including information. credit card.to prevent this from happening Make sure you don’t do financial transactions using public wifi.
The second mode is to call you at odd times. (afternoon or evening) and said that it came from the bank The goal is for you to provide your credit card number and CVV and CVC number you. So the card data can be hijacked. to solve this problem You must remember that every bank has a call center with a unique number. And they are unlikely to contact you if you don’t call first.
The next mode is with card system. In this mode, attackers can obtain your personal data by installing a special chip in the EDC machine or cash register. to fix this You must make sure not to swipe your card twice. If the card cannot be used Change to another card or cash
3. Credit card billing
This ensures that there are no suspicious transactions using your credit card. Make sure you receive timely transaction notifications via SMS or email, and make sure you check your credit bill carefully.
If you received this invoice using paper instead of email. Tear them into smaller pieces before discarding, or if necessary, burn the bill completely. The goal is not to let anyone steal your data by digging through the trash.
4. Use a limited number of credit cards only.
The ease of transacting using this facility attracts a large number of people to have multiple CCs at once unnecessarily. In fact, having multiple credit cards can be a waste. And there’s an annual fee you’ll have to pay if you don’t use one credit card at all. The point is, if it’s not really necessary, 1 or 2. credit card just enough