How To Use of Credit Cards Wisely

rhb bank credit card

We often look for banks to lend or borrow money. Now banks are looking for customers to lend either cash or credit card facilities in various ways. Usually they will make phone calls promoting and offering it.

When it comes to the use of credit cards, we usually do not reject bank-issued phone calls. After being briefed on the benefits of using a credit card, we will finally be interested in it and provide them the personal details they needed. Indirectly we have agreed and finally the promised card is in our hands.

Then we will start using the credit card for activation. After enjoying the benefits of using it, we finally forget about it and spend without considering the impact of using a credit card. Until it’s time to pay it off, we can’t afford to pay it all even for the first bill. Most consumers will pay only 5% according to the bank’s minimum requirements. You should be aware of the pros and cons of using a credit card before agreeing to obtain it.

Eventually you will incur more debt, various charges will be borne on you. This is one of the disadvantages of using a credit card. So how can you prevent overspending on your credit card? Let’s follow these tips if you’re a credit card user.

rhb bank credit card

1. Always be careful and cautious

When using a credit card, we do not realize that we have spent more than we earn. This is because making a payment by using a credit card is easy. Usually when we use cash, we are more inclined to spend because we think that money should be used for one month or until the next paycheck.

Tips: Never think that a credit card is free money. The thing to keep in mind is that you need to pay back the money you used to spend. If you can afford to pay it all before putting it in the bill, it’s fine.

2. Go Shopping When You’re in a Good Mood.

Usually a person will spend more when they are angry or sad. Not only that, boredom and jealousy can also make a person spend too much. Plus, with the use of a credit card.

Tips: The best way is to cancel your shopping activities when you are in a bad mood even if your partner is angry. Explain it and wait until you get back to normal.

3. Spend With Cautious Not to Credit Card Limit.

Each credit card provided has a limit to use for your eligibility when researching during the first credit card offer. Usually a person spends money because he thinks he can afford to pay 5% a month.

You need to understand that having a large credit card limit is not the same as having a lot of money in a bank. You have to manage your credit card expenses based on the amount of income and expenses you have.

Tips: Make sure you keep an eye on your credit card balance to make sure it doesn’t exceed the limit.

Conclusion

Credit cards are actually very important and useful to us especially in times of emergency. The use of a credit card does not adversely affect your performance. It all depends on how you use it. So use wisdom and prudence.