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Tips for Using Credit Cards to Avoid Lending Trap

Artikel diperbarui pada 16 Maret 2023.

Tips for using credit cards are certainly needed for those who have never used them before. In today’s technological advancement, credit cards provide convenience when shopping and transacting for needs and lifestyle.

Credit cards can make your life and finances easier as long as you can use them wisely. Because if not, it is not impossible that you will get into debt, go bankrupt and fall into poverty.

Tips for Using Credit Cards

The following are tips or tricks in using credit cards so that your credit score as a debtor continues to be safe and will not hinder other urgent loans in the future.

1. Make Usage Limits

The first tip in using a credit card is to start applying credit card usage limits. Recognize your financial capabilities first and determine the amount that can be tolerated by using the credit card.

2. Pay bills on time

The second tip in using a credit card is to pay bills on time. If you are late in paying bills, the credit score in the Financial Services Authority on your behalf will be bad. It can affect the approval of the next loan.

3. Pay the bills in full

The next tip for using a credit card is to always make payments in full when the bill comes. The habit of paying the minimum will lure you into borrowing more than you can afford.

4. Avoid Cash Withdrawal

The cash withdrawal feature offers considerable interest. That’s why this credit card tip is important for you to pay attention to. Avoid using cash withdrawals for your financial security.

5. Don’t Collect Many Credit Cards

The following tips for using credit cards are often ignored by credit card users. There is no need to be proud when you have many credit cards. This is the same as displaying the risk of consumptive living and the obligation to pay large bills every month.

Keep in mind that the way you use the credit cards in your wallet has annual and administrative fees that are not small. The more credit cards you have, the more financially strapped you’ll be because you’ll have to pay all those fees.

Things You Need to Consider Before Applying for a Credit Card

After knowing the tips for using credit cards wisely, then here are the steps you need to take before applying for a credit card, namely:

1. Checking Good Financial History

When you want to apply for a credit card, the bank will check the state of your financial history. Make sure you don’t have bad credit in previous loans.

The credit card issuing bank will certainly make this a reason for consideration. Whether to approve the application for a credit card or not.

2. Finding the Right Credit Card

Determining the right credit card is one of the tips for using a credit card, this is an easy thing to do. You must be careful to determine which choice to make as a credit card option.

Mak should look for a credit card that has many benefits and also broad access. For example in the form of rewards, free dues and also interest are mandatory things that are important to know.

3. Complete All Requirements and Fill Out Forms

When you have found the right credit card, then the next step is to visit the bank to make an application. You will be asked to fill out an application form along with the requirements as well.

Usually, age requirements and minimum income are requirements. For example, the minimum age of the credit card owner is 21 years old with a minimum income of IDR 5 million per month. You must prepare a pay slip and company certificate.

How to Pay a Credit Card

The next thing you need to know regarding tips on using credit cards is how to pay bills through credit cards. You must already know the amount of the bill that must be paid before starting to pay.

1. Go directly to the Branch Office

You can go directly to the branch office of the issuing bank to pay your credit card bills. The following are the steps in doing so:

Take a deposit slip, if there is no written information on how to pay the credit card bill at the bank office, you can ask the bank directly.

Fill in the deposit slip which can include your name, credit card account number and also the amount you want to pay. After all the information is filled in, you can queue for your turn at the teller.

2. Via ATM, Internet Banking and SMS Banking

Not only direct payment at the branch office in the above manner, you can also make payments via SMS banking, ATM or internet banking. Provided that the credit card issuing bank offers these facilities.

If you use ATM, SMS Banking or Internet Banking from the same bank as the issuing bank of your credit card, there is generally no fee.

Phone banking, on the other hand, will generally cost you IDR 3,000. You will also be charged an additional fee of Rp5 thousand – Rp7.5 thousand if you make payments through other banks.

3. Auto Debit

If you have a savings account at the same bank as the credit card issuing bank, then you can take advantage of the auto debit facility, which means that the bill will be immediately withdrawn or debited through your savings account.

Credit cards have undeniably become one of the mandatory things needed in the current era. For those of you who are busy and want to make any product transactions simply and practically, you can read the tips on using credit cards above.