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 your financial helper. However, if not careful, your credit card can make a great debt that will destroy your finances.
Credit cards were first introduced in the 1920s in the United States. At first people called as plastic money. Later plastic money or credit cards attracts the attention of people all over the world.
Then, in 1985, introduced a credit card with an exclusive holographic sophisticated. Hologram on a credit card is made with a visible laser beam three-dimensional shape. In addition, the credit card given other security features, including special codes in the magnetic lines to form a sign behind 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 the same credit card you owe. When buying something, you do not need to spend money but enough to swipe a credit card. Purchase transactions are conducted within a period of one month accumulated a total bill to be paid. On a specific date each month to the maturity date which is later than the date you paid the bill. Previously, invoices will be sent, which contains details of the date of the transaction, the total bill and the minimum amount to be paid.
Benefits of Credit Cards
Credit cards will be very 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 grace period for repayment. So if we do not have cash, we are still able to 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 somewhere that is not wise to carry cash.
You can also take advantage of the promotion of the credit card to get discounts at a particular restaurant or while shopping at a particular place. If the purchase is important and necessary course you will benefit from discounts obtained. But this needs to be examined properly. If not, it would be wasteful to make us buy things that do not need or dine in a restaurant because they are attracted to the discount given.
Dangers of Credit Cards
Because of its simplicity and no need to spend money when we buy something, we are often too busy to shop regardless of how much total money that was spent. Moreover, 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 because of unused cash.
However, if you do not pay in full the total bill then the danger await you. You are able to pay the minimum amount which is usually 10% of the total bill. However, the difference will be counted as a debt to be paid with interest the very large. As a result, the 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 for some time, the bank will bring in debt collectors who will violently force you to pay the arrears. Many credit card users end up having to sell his property to pay off debts that swelled due to interest on credit cards. Need to note, that most credit card interest rates than other types of credit.
Credit cards are also often used in fraud. Someone or some institution might fool you with various ways to get your credit card number. Furthermore, they will make a purchase or making money with your credit card number that will be charged to you as the owner of the credit card.
Wise Tips by Credit Card
Flexibility and variety of benefits offered by credit card partially offset by the danger of either temptation to buy and live beyond the capabilities. There was also the danger of abuse and credit card fraud. Given the danger behind the use of credit cards, then the wise thing 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. When you have more than that, you should immediately close the other credit cards. Considerations in choosing a credit card which will be maintained including interest rate credit card, credit card limit and benefits offered by credit cards are actually useful to you.
Allocates funds for credit card
In preparing the budget, enter the maximum amount of funds that may be used by credit card.
Noting purchases using credit cards
With a record will help you find out how much you should pay so that will help you ‘put the brakes’ next purchase. These records can be matched with invoices to determine whether you actually make 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, the mall or eating out. If you are boarding or rent 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 have to pay interest on the cash withdrawal value even higher than the rate for purchases.
Beware of credit card fraud
Standby credit card fraud increasingly diverse either by phone or the Internet. So, keep careful not notify the credit card number, date of maturity, or other information to an unknown person. Do not lend your credit card to anyone else.
Do not let your finances get worse with credit card debt. Use your credit card wisely so that your finances remain strong.