As a card that is currently often used as a payment method, of course there are various advantages and disadvantages of credit cards that you must pay attention to. This plastic card that is increasingly used is indeed interesting because it will make it easier for the owners to shop.
Behind it all, the way to apply for credit cards is actually quite easy. You only need to go to the nearest bank, then fill in the data and complete the required documents. Not infrequently there are officers who will offer credit cards in shopping centers and in certain crowded places. In fact, even now credit card submission can be done online . So, you don’t have to go anywhere.
The main advantage of a credit card is because when you use a credit card, you don’t need to bother. When you will make a payment, you can simply submit the card. Later, the cashier will immediately swipe your card to make a transaction. The thin and easy to carry form also makes it easy for you, so you don’t have to bother carrying large amounts of cash. In addition, you also don’t have to bother looking for an ATM machine like a debit card. You can directly use a credit card at the counter and make a payment.
Every month, usually the bank will send a bill of all transactions that you have done for the past month. This bill can certainly provide a function so that you can evaluate all the spending that you have done. That way, you can also check whether the expenses you make with a credit card are sufficiently effective or not. Pull out the evaluation results and apply the solution to manage spending the following month.
The advantages of credit cards that are often used are because they can be used for emergency times. Imagine if there is an emergency moment that requires you to pay a certain bill in a large nominal, but you do not bring enough cash. Credit cards can be used for emergency times like this.
Inevitably, the distinctive feature of a credit card that makes the payment system ‘ buy now-pay later’ is indeed the main advantage of credit cards. Not only in times of emergency, in fact this method can lighten your burden when going to buy a desired item. You can buy items first, then pay in installments regularly every month (if there is an installment program), or pay a nominal the following month. Only, it should be noted that you must be absolutely sure of the ability to pay / installments. If you are sure you can make payments regularly, you will be safe from the shadow of the installment interest.
It’s no secret that the advantages of credit cards are that you can use them to get discounted discounts. This can happen through promotional programs provided by the issuing bank with partners, whether in the form of tickets to watching movies at the cinema, discounts at restaurants, discounts when shopping with a certain minimum. Some credit cards even now work with airlines, where if you buy a ticket with a credit card, you can get additional points that if accumulated can be exchanged for certain prizes.
Not only promotions, you can also take advantage of the reward / points program available on your credit card. Usually when using a credit card, you can immediately collect rewards / points, which can later be used at a later time. In the reward system, for example, you can save as a credit card, so you can spend with the total money contained in the reward for free. Then, on the point program, you can use it in accordance with the conditions made by your issuing bank.
Even though it’s easy to use, sometimes there are some merchants who have provisions in the form of a minimum purchase amount if you want to use a credit card when you pay. This will usually cause buyers to increase the total items to be purchased, and have an impact on the higher bills that will appear in the following month. This also can cause waste, because you will start buying items that are not needed, just to be able to use a credit card.
Vulnerable to Overuse The ease of using a credit card can make people more interested in doing transactions again and again with a credit card, without thinking about the ability to pay bills / installments in the coming month. If it is used without control, it is not impossible that a credit card can backfire and no longer be profitable, because you could even fall into debt and make it difficult for you to pay off the remaining arrears. Accompanied by flowers Even though shopping with a credit card can facilitate your payments in installments, keep in mind there is always interest charged on these bills. This of course can make the price of the goods you buy become more expensive than they should, especially if you make late payments. If it is not carefully considered and considered a trivial matter, of course this can make the bill become bloated in the end.
As already mentioned, credit cards will indeed charge interest on outstanding bills. Not only that, credit cards also have a variety of strict rules that must be obeyed, because otherwise you will be subject to late penalties which also increase the total arrears. Not to mention, there are administrative fees that also need to be considered and paid regularly.
After knowing the various advantages and disadvantages of credit cards, it means you can more consider whether or not the need to apply for a credit card like this. If you feel that the current financial system is stable enough and you can control the use of credit cards wisely, you can start making submissions. Remember, having a credit card is easy, but controlling its use and overcoming the problem is not easy. Good luck!