The use of credit cards will require a strong commitment and also a high discipline, it is related to the pattern of life and also the way we manage finances. When a person does not have good control over the use of a credit card, then it can be ascertained if someday the person will get into debt and have financial difficulties. Here are some points that can be applied in using free credit card effectively:
- Limit the Amount
Currently there are many types of credit cards offered by the bank, but of course you will not need all types of cards is not it? Use only one or a maximum of two credit cards, so be sure to recognize your credit card requirements first, so you can find the type of card that is most appropriate for you to use.
Do not use anything that is not beneficial to the maximum, this is also true in credit cards. Using a credit card is meant to simplify and also benefit, so make sure you get both of those from the credit card you use.
- Avoid Cash Withdrawal
Credit card is not an ATM card, so you should not use it in ATM machine, meaning do not use for cash withdrawal transaction. This will incur a certain amount of charges in your bill, for every cash withdrawal transaction you will be charged 5% or at least $ 5. Huge amount, isn’t it?
Not only cash withdrawal fees, you will also be charged interest amounting to approximately 3.8% -5 %% of the amount of funds you withdraw from your credit card. Some of these interest will be applied immediately when the cash withdrawal transaction is done, because the bank implements a daily interest rate system on cash withdrawal transactions, in contrast to the interest on the shopping transaction.