Wise use of credit cards

With so many credit card offers and the ease of applying credit card applications make people want to have a credit card. However, someone who has a credit card should have been familiar with the rights and obligations as the holder of a credit card.

Some of the benefits or rights for credit cardholders:

1. Discounts at certain merchants;
2. 0% of interest to purchase certain goods or services;
3. No need to carry cash in large amount;
4. Knowing of the credit card's interest for any purchases 3.25% - 3.5% per month (39% -42% per year) and withdrawal rates of 4% per month or 48% per year;
5. Obtain the billing information in complete, accurate, on time and informative.

While the obligation of credit cardholders are:

1. Pay the annual fee;
2. Pay off bills before its due date;
3. Pay the interest on credit card if the customer does not pay the bills before maturity;
4. Pay interest on the cost of stamp duty;
5. Pay the late fees or penalties.

If clients know their rights and obligations as cardholders, surely customers will not experience difficulty in paying their credit card bills.

Make sure you have the funds

Credit card is a high-risk loan because it is not through the usual lending requirements application, such as have no collateral and an easy process. Therefore, the banks charge high enough interest to compensate in case of write-off due to failure to pay.

Card issuers are sometimes not transparent for the imposition of interest rate of credit card; even the bank can apply the method of compounding interest calculation. Eventually, that is why the customer will have greater debt balance.

To prevent you from having problems in using your credit cards, here are the things you should look:

1. Make sure if using a credit card, you already have a sufficient balance to make credit card purchases. Do not force yourself to spending by using credit cards while you actually do not have the money.

2. Make sure you pay bills in full before the due date. That way, you will not get interest on your bill.

3. If you are unable to pay off some credit card bills, you should stop using the credit card. Furthermore, quickly pay off or pay the bills gradually start from card with the highest interest or the biggest bill if the interests are the same. Please note, this payment must be above the minimum payment and at the same amount for each month until paid off.

Still thinking of debt? Use your debt for productive things.

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