What is a Credit Card (Credit Card)?
Surely, everyone knows about mortgage! However, not all have it, either because it has not been able or because of fear. Typically, this fear is because we are not yet fully familiar with the functions and benefits of credit cards. So, did not know it was love, right?
Have you ever watched the movie The Confessions of a Shopaholic? Well, in the movie, played by the beautiful Isla Fisher, the illustrated shopping crazy how someone who considers that the credit card is the rescuer of his life. Arrive at a scene, where the woman tried to pay for the goods using many credit cards, because some of the cards have been killed alias has reached the maximum limit its use.
Indeed, for most people, credit cards can be a god helper in some situations, such as when we will pay the hospital bill amount is not little. But it will backfire, when you use it only to dissipate the buildup of debt that led to your future. Before you go bankrupt due to the permanent credit card, it's good to be wise to first identify your financial situation become more healthy.
The use of credit cards is still relatively new in Indonesia, or about 80s. Under the decree, the credit card business are classified as financing services. Besides, issued by a bank, credit cards can also be issued by non-bank institutions such as financial institutions. Credit card is a plastic card that is used as a means of payment and cash refund.
Credit cards allow the owner to pay for goods and services over the agreement that the owner promised to pay later. Issuing bank then determines the maximum credit limit that can be 'borrowed' for shopping or withdrawn in cash if necessary. With a credit card, the owner is possible to delay payments (debt), but the consequences will be charged interest.
Anyone who saw the advertising or promotion of credit cards without thinking, would be interested in and try to have a wide range of credit cards. Basically, credit cards will greatly help certain people. For example, entrepreneurs, marketing agency, or large businesses who must often spend a lot of money while giving bonuses to the entertainment business partners or customers.
In literal, credit card only serves as a substitute for cash shortly that the bill will still have to be paid. Advantages most major credit cards, is convenience. Comfort can mean no need to carry a lot of cash, and the existence of discretion to defer payment. However, credit cards are not recommended to use too much to the cost of consumption and use as needed. In addition, these credit cards can also withdraw cash at various places such as banks or Automated Teller Machines (ATMs) are scattered in various strategic places such as shopping centers, entertainment and offices.
All you need to underline is that the credit card is not a reason to look stylish and modern or increase prestige. Credit cards are just a means of payment without cash, and to defer payment. Credit cards do not provide the extra money, so use should be limited. Credit card payment is not a tool that can be used as 'magic money card' and you do not have an obligation after using it. Credit card is a card debt, credit card interest is usually where most often make you be surprised to see the ending balance.
Know How It Works
How to use a credit card is easy, you simply hand over your credit card to the cashier when will pay a purchase transaction. The most important thing to remember, when the payment transaction is made, you agree to pay a 'debt' to the bank issuing the card. It is marked by affixing your signature in the proof of payment.
Transactions conducted by using a credit card, each involving various parties concerned. Each of these agreements are bound to each other, both the rights and obligations. The parties involved are subject to the agreement they have made. The parties involved in this, will eventually form a working system the credit card itself, where each party has its own role.
There are three parties involved, for each user transaction and credit card payments. The first is, the banks and financial institutions that serve as the issuer or credit card payments are billed by the merchant. The second is a merchant, the partner banks and financial institutions as places to shop for card holders as in places of entertainment, supermarket, supermarkets, restaurants, hospitals, boutiques, and others. The third and last, is the card holder. Customer whose name is listed in the credit card as well as a person entitled to the credit card.
Having understood the concept, it takes a step wise in its use. Here are a few tricks about the use of credit cards:
Have a clear goal to have a credit card, such as a post emergency fund, to purchase much-needed vacation (plane ticket or hotel reservation), to shop online, or downsize eating outside the home. Have at most only two cards (Visa and Mastercard). It would be better than two different publishers who have the most and great benefits. Limit the use of a maximum of 30% of monthly income, so that if something happens to be able to be repaid.
Pay off the bill every month, do not just pay the minimum value. Pay before the due time to avoid being hit rate (3.5% per month = over 40% a year!) And fines. Cash withdrawal Benat only if it is forced.
Once you have become acquainted with the meaning, function, mode of action, and the trick of course you dare to enter a more serious stage of the 'getting to know and getting affection'.