The high needs of a person’s life make technology continue to improve in order to fulfill these needs. One of them is the emergence of credit cards.
A credit card is a card issued by a bank containing a limit with a certain nominal, which can be used to meet the needs of the card owner. The use of credit cards needs to be controlled properly so as not to harm yourself.
Then, what is a credit card, and what are the benefits? For that, in this article, we will discuss more what a credit card is, its benefits, and how to use it.
What is a Credit Card?
A credit card is a technological development of a debit card, where this credit card is used as a non-cash payment instrument that the owner can use to meet their needs. The credit card has interesting facilities that make anyone lulled, such as discounts, promos, etc.
Benefits of Credit Cards
Credit cards have so many benefits for their users. Here are some of the benefits of credit cards that you need to know:
1. Ease of Transactions
As previously explained, credit cards have benefits in facilitating your transactions. In general, credit cards have the same uses as debit cards. The only difference is that the owner can use credit cards to easily buy various needs and pay for them at the beginning of the following month.
Meanwhile, the balance on the debit card will be immediately deducted when making a transaction so that we do not have to pay the following month as a bill.
2. Many Discounts and Promos
Another benefit that cannot be doubted of the existence of a credit card is that many discounts and promos are not provided on debit cards. This is one of the differences between a credit card and a debit card. There are many types of discount offers and promos that you can get starting from shopping promos, travel promos, lodging, and so on.
3. There is a Guarantee
Another benefit of a credit card is a warranty offer. For example, if you have problems buying a product, you can contact the credit card issuer directly. After that, the credit card issuer will immediately help you.
4. Can Manage Finances Well
Maybe not everyone realizes that other benefits of credit cards can actually help manage finances well. When you use a credit card, every expense you make will automatically be recorded on the monthly billing statement.
That way, you can easily plan your budget for the next month. Credit cards can help manage finances well if used wisely by the owner.
5. Help in times of emergency
Wise use of credit cards can make it easier for you to meet needs in times of emergency, such as accidents, illnesses that require you to be hospitalized, and so on. This will not be a problem if you have a credit card. However, make sure your credit card limit is sufficient for this. For that, you should use a credit card wisely.
How to Use Credit Cards Wisely
The use of credit cards is currently increasingly in demand by many people. In addition to making transactions easier, credit cards can also help manage your finances if used wisely. Here’s how to use a credit card wisely that you can do.
1. Limiting Credit Card Limits
If you are unable to pay off the number of installments, you should limit your credit card limit. Make sure beforehand that you know the type of credit card you are using. Use the limit according to your needs. This is because if you have a high limit, the higher your transaction will be and the higher the installments you have to pay.
2. Minimizing Cash Withdrawal
When you withdraw cash from a credit card, you need to know that you will be charged a higher interest rate than you use it for shopping. For that, make sure you minimize your credit card cash withdrawals.
3. Use Only If Needed
Credit cards should not be used for extravagance if your financial needs are still inadequate. For that, you should use your credit card only if you need it to avoid many bills or installments that must be paid.
That’s an explanation of credit cards and their benefits. Please note that sometimes when we use a credit card, we are unaware of excessive transactions. For that, make sure you use your credit card wisely!