Not everyone thinks it deserves to be able to have a credit card, so being able to have a plastic card is arguably a matter of pride. It’s just that, after being able to get it, there are several responsibilities that must be held so that its use is not excessive and still according to the rules. Here are the bad habits in using a credit card that you should know about:
Paying Habits with Minimum Payment
One of the bad habits in using a credit card is to always pay credit card bills with a minimum payment. This option is arguably the favorite payment option.
The minimum payment is indeed seen as relieving and saving. In fact, the minimum sustainable payment only makes the credit card owner become a hoard of debt. Usually, the payment of credit card bills with a minimum payment will cause total bills to continue to accumulate, along with interest.
Always Spend Credit Card Limit
The next bad habit of using a credit card is to always spend your credit card limit. This is made worse if credit card owners shop without taking into account their ability to pay. The worst thing that can happen is the inability to pay bills, as well as arrears in payment. The side effect, of course, is the name of the cardholder that can be recorded by the National Bank and has an effect on the poor historical IDI score. The use of credit cards should be used for promotional purposes only in order to get a discount on any payment.
Making Late Payments
The impact of using credit cards to the maximum extent is the possibility of cardholders who are unable to make payments and experience delays. This can also happen to those who often forget to make payments on time. Delay in paying credit card bills can have the following effects: there are late fees to be paid, as well as interest accrued on your total credit card bills. To overcome this, the cardholder should limit the use of credit cards to a maximum of 50-60%. For those of you who often forget to make payments, ask the bank to activate auto-debit from a savings account to a credit card bill. This can minimize delays, so as to avoid fines or accumulated interest.