In the previous article, you already know what a credit card is and its advantages!
What are the downsides of credit cards? And what should you pay special attention to when using a credit card so as not to be financially “struggling” and not fall into a bank debt trap?
I. Things to keep in mind when using a credit card
The advantages of credit cards are undeniable, however, credit cards are also a double-edged sword. Using a credit card improperly will leave you in debt and high interest payments.
So, when you decide to use a credit card, keep the following in mind:
#first. Pay on time, don’t lose interest
I used to pay late so I’m very absorbed, the interest rate must be said to be exorbitant 🙂
That month, I spent more than 30 million on my credit card (about the beginning of the month), then about 10 days later, I recharged my account with 20 million, which means I only have about 10 million to pay.
When it came to the payment period, I forgot about it, 2 days later I suddenly remembered and hastily paid into my account. And I assume that I will only have to pay a fine of 10 million overdue interest in those 2 days.
But no, things are not as simple as I thought, I will check my statement next month
1 million 6
1 million 7
something profit. It’s really surprising, bewildered to fall back!
Only then did I contact the bank, they explained that, even if it was 1 dong late, they would still charge interest on the total amount spent (ie more than 30 tools), no matter how much you paid before. how much to account @@
That’s it, fortunately 2 days to remember, but 1 week is really open!
#2. Do not use credit cards to withdraw cash
Except for force majeure cases, you absolutely should not withdraw money from your credit card for consumption, because the amount you withdraw will be charged immediately afterwards.
And interest rates are often very high, you can ask the counselor about the fee when withdrawing money from their bank’s credit card.
If you withdraw money, please recharge your credit account as soon as possible. It can be said that the most foolish action is to withdraw money from a credit card to spend!
#3. Be careful with your credit cards, lose your credit card = lose money
Because of the nature of the credit card, there is no password. So anyone, just knowing the card number (printed on the card), the card’s expiration date, the last 3 digits of the card (CVV number), the name printed on the card, can make online purchases or swipe. cards at payment counters.
So, if you discover that you have lost your card, quickly block your credit card and notify the bank.
#4. Sign the card and cover the last 3 digits on the back of the card
The fact that you sign the back of the card will help limit (just limit it guys) the situation of losing money when the card falls into the wrong hands.
Because the payment place can compare the signature on the back of the card with the user’s signature to know if you really are the card owner. But it’s very bad luck, in this case it’s usually more unlucky
#5. Do not give out credit card information to anyone
Even if it’s a relative, don’t be foolish to give it to anyone, it’s your personal property, it’s related to money..
Also, don’t take a picture and send it to anyone, it’s a waste of money!
#6. Only use credit cards at reputable stores/websites
Not all websites are reputable enough for us to make payments by credit card. Some reputable websites/services, or large e-commerce sites, you can enter your credit card information to pay securely.
Simply because they encrypted the information and kept it safe for you. But for sites “oh my God”, not reputable enough, guys, maybe they will use your card information to shop everywhere!
Even payments in restaurants, or commercial centers are the same. Make sure the card is always in your sight, don’t hesitate to give the card to the staff to swipe. Unfortunately, being photographed both sides of the card will also lose money.
Usually, the staff of high-class, 5-star restaurants and hotels will not do so, but if you are more careful, you can note this!
#7. Make a card with a moderate limit
The bank will give you a certain limit and you have the right to spend this amount in a month (depending on your creditworthiness).
Many banks grant a limit of up to hundreds of millions, even a billion limit is available (powerful black card). But you should only use a moderate limit, depending on your monthly spending needs.
For example, if you spend less than 30 million a month, you will open a credit card of 100 million. So that I don’t immediately lose my card and lose 100 million?
Making a credit card with a moderate limit means minimizing the risk of losing your money, you should only open a card with a moderate limit (according to your spending needs), when needed higher Contact your bank to add a limit.
#7. Save the phone number of the bank to contact to lock the card immediately when lost
Of course, save the information related to the bank you opened the credit card with (usually there will be a phone number on the back of the card). If necessary, you can contact us first, so that when you lose your card, the operation will be faster!
If you find out that your card is lost, please contact us to lock it immediately, sometimes it takes only a few seconds to lose your money!
Many banks now offer credit card management apps, so if your bank has one, download it and get familiar with its features.
II. Share some experiences using credit cards
Most banks also allow opening a supplementary credit card from the main card. So, you can open a supplementary card for your spouse/children.
The credit limit of the sub-account will be shared with the limit of the main account. And all transactions (both supplementary and primary cards) will be listed together, so it’s easy to control.
In addition, the supplementary card has a much lower annual maintenance fee than the main card.
Some banks have very good incentives when opening a card, you can learn before opening a card to take advantage of this promotion. It can be a free annual fee for the first year, or a refund of a certain amount (sometimes up to a million).
If you don’t have time to go to the counter, you can open a 100% online credit card (usually easy to open, no need to prove income ..)
Spend within your financial means.
Although with a credit card you can buy products/services with prices up to several tens of millions of dong while you don’t have any in your pocket. However, aim to see if you have enough money to pay back to your credit card by the payment period.
Never spend so much that you don’t have enough money to pay for your credit card.
Can use credit cards as financial leverage, for business people, they will definitely like this
There are many types of credit cards available today, such as loyalty points, cashback shopping cards, loyalty cards, etc., if you see a suitable card, then choose that card. For more details, you can check out this credit card classification article!
When paying by credit card, there will usually be a message returning to your phone number immediately, please check the amount you just paid to see if it is correct, sometimes the staff they press wrong.
Never have the intention of exploding credit card money, it is not easy to “eat” their money. Once you have fallen into bad debt of a bank, all banks know and you never have the opportunity to work with a bank again (transactions/mortgages, loans…).
The bank has full information about you so don’t expect to “escape”, maybe they will proceed to squeeze your assets.
Or for example, you owe a credit card of Vietinbank and intend not to pay, but there is still money in your MB Bank account, Vietinbank will directly collect money from your MB Bank. I just take the example of those 2 banks!
So, if you think that it is not okay to stop playing with this bank and then play with another bank, guys!
Important notes when using credit cards
Don’t let your credit card be your financial burden and don’t let yourself fall into the bank debt trap.
Using a credit card correctly will help you manage your spending very well, improve your life, but if used incorrectly, it is a disaster.
Hope the information in this article will be useful to you, don’t forget to share this content if you find it useful. Thank you!