How to be a smart credit card holder

1. Don't use multiple credit cards

It is true that credit cards are very helpful in emergencies where you are short on cash and also facilitate payments; but having many credit cards can tempt us to spend too much and incur credit card debt that is difficult to pay off quickly.

Also, using the reward points on the card is great so if you use one type of card, your chances of getting a discount are even greater.

2. List things to pay attention to when using

Pay on time to avoid interest charges.

Sign up for SMS transaction notification service to ensure your budget doesn't go into deficit.

Save the hotline number of the card-issuing bank to contact immediately in case of problems.

Plan your spending carefully to avoid overspending, which can lead to insolvency.

3. Create and maintain an emergency fund

Most of us believe that borrowing money from a credit card is a good measure in unexpected situations, but in reality, it would be unwise to consider it as a general rule.

A better option is to set up an emergency fund for such situations, which will prevent credit card debt, especially in emergencies where you won't be able to come up with cash within a few months.

4. Understand interest rates and fees

The normal credit card interest rate is around 13 - 35%, with state-owned banks the credit card interest rate will be more comfortable.

Using a credit card, you will have to pay fees such as: Card issuance fee, annual card maintenance fee, foreign currency conversion fee, late payment penalty fee... Customers using credit cards need to understand these fees to avoid unnecessary costs.

5. Take advantage of 45 days interest-free to make purchases

Assuming the bank closes the statement on the 15th of every month, then if you make a purchase from the 16th, it is best because customers have 45 days of credit card interest-free period, so for a loan from the 16th, you will not have to pay interest until 30 months later.

However, you need to strictly control the amount of monthly card installments to avoid paying over-credit limit fees.

6. Avoid cash advances by card

It is best to live within your means and avoid taking out cash from your credit card even in an emergency. This is the worst thing you can do with a credit card. Having a smart spending plan will help you avoid this costly trap.

7. Make full and timely payments

You need to make arrangements to pay your card debt on time as required by your card issuer. Falling behind on your payments will affect your credit score as well as the exorbitant interest rates. The sooner you rebalance your account, the less stress credit debt can cause.

8.Use card to hunt for bonus points, vouchers, and promotions

There are currently many attractive promotions for cardholders such as cashback, bonus points, converting transactions into installment loans, direct discounts when transacting by card. Even when using credit cards to make regular online purchases, the value of goods can be reduced by 30 - 40% compared to the original value.

Regularly following information and taking advantage of the "hunting" feature for promotional gifts will help you save a fair amount of money while still being able to own your favorite items, or enjoy other services that help improve your quality of life.

9.Recognize the signs of credit debt

Many people think of credit cards as a convenience without realizing that they are slowly falling into debt. It would be best if you understand and recognize the signs such as postponing credit card payments to pay off other debt, ignoring card debt notices or adding to your ability to pay with luxury items...

By recognizing these signs, you can become a smart card user.

10. Never lend your credit card

The last factor is that you have to give up your trust with the people around you to lend them your credit card. This is unwise because you are the only one responsible for the debts and usage costs. The convenience and ease of using a credit card is the reason why it should be yours alone.