How to use a credit card determines your finances. Mistaken in using it can make your finances can be broken later you know.
So you need to know how to use the right credit card. Just like the correct use of credit cards?
First of all, you must know what the essence of the credit card itself. Not the same as a debit card, credit card transactions can be practically the same as owing. What you spend with a bank paid card first and then you replace it on time.
Actually, not a few card users already know that. However, there are just users who are too far when dealing with credit cards.
Investigate a calibaration, the problem itself lies in how to use a credit card that was wrong. Then, how to find out how to use a credit card is already correct?
1. Use a credit card as needed
If you want to know whether using a credit card is right, you must first identify the card used. Credit cards themselves have different advantages from each other.
There are credit cards that charge free annual fees. There is also a fix with a amount of up to $ 500 thousand.
Then there are cards that are beneficial for traveling. There are also cards that are very suitable for running a business.
In essence, use a credit card according to the needs of what you’re after. For example, you just love to travel, choose a card that makes you can collect a lot of miles. That way, you can fly for free when exchanging the miles collected.
2. Browse how much you spend with a credit card?
When using a credit card you must know how much you use.
Because using a credit card is just the same as debt, you must make sure the amount of usage does not exceed 30 percent of your monthly salary. Less than that can actually make your finances safe from undermining excessive spending.
If traced it turns out transactions with cards more than 30 percent, it’s a sign that your finances are not healthy. Letting it continue can cause other needs to be disrupted, you know.
It could be just because of a very large credit card installments, you are sacrificing allocations for saving or investing. If that’s the way to go, it’s the same as making you have no savings or investment. Obviously this makes it difficult for you to achieve financial freedom.
3. Benefits of credit cards as expected
From the use of a credit card you must know the benefits.
Each credit card offers different benefits. Some give bigger cashback. There are also those who love a lot of rewards.
Not infrequently there are users who get cards not as expected. For example, just a credit card that is expected to give you a large cashback when dining, apparently instead not giving cashback at all.
So find out information that is not half measures. Making hasty decisions can actually make you lose money later.
4. The 0 percent installment credit card facility can be used at many merchants
The 0 percent installment credit card facility can be used at many merchants.
The 0 percent interest installment facility is very useful for those of you who want to buy goods in installments. How useful is not try? Usually the goods credit or loan installments always include interest. Well, credit card installments can be without interest.
The hope is that the credit card they have provides a 0 percent interest installment facility, but the reality is not always the case. If this happens to you, it is a sign that something is wrong with how to use a credit card.
Just so you know, just a few credit cards that work with many merchants in providing 0 percent interest installment facilities. This is where you have to browse for any credit card that works with many merchants.
Because until you choose the wrong card, you might not be able to buy the items you want with a 0 percent interest installment. Really loss if that happens?
Well, that was a few things that you should know whether using a credit card is correct or not. By understanding these things, guaranteed there is no story you experience losses in using a credit card.