Continue the previous article (Read: Things That Need to be Noticed Before Using Credit card).
Second, the magnitude of the costs that is charged by credit card issuer such as annual fees, the amount of the annual cost will vary, it depends on the type of credit card that is issued by the institution. Other cost that also should keep in mind is the late payment fee in installments, over limit fees, the cost of making a new card and others. All these cost should you look carefully, these things sometime can be a burden in the future.
Third, the information of the interest rate for shopping and cash withdrawal. Both types are not same. Cash withdrawal through ATM usually will be charged a higher interest rate. Administrative costs will also be charged to you directly and the interest usually will be calculated on the same day you pick it up. So usually there is no grace period in making cash.
Fourth, the calculation of credit card interest. If we see the pattern of credit card interest calculation that is commonly used by publishing company, there are two types of interest calculation. They are calculate with two-cycle pattern of average daily balance, including new spending and calculate interest by looking at average daily balance (average daily balance), including new spending. The last is the best credit card interest calculation for you as credit card user.
Fifth, information related to deadlines and the maturity date of the bill, this is a main point in using credit card. The longer its maturity deadline (grace period) so the profits of credit card users also will greater. You can get that information by asking to the issuing company directly.
How to use credit card effectively?
Often times we spend a lot of money just for paying credit card bills and its interest. Therefore you must be wise in using credit cards, so its usage can be more effective and efficient. Here's how to manage your credit card usage effectively and efficiently.
1. Discipline in the use of credit cards. Try to use credit cards based on your finance plan that had been budgeted.
2. Make sure that indeed you have a plan to buy the goods, such as electronic, costume or others and also make sure you can pay off the entire bill before the due date. Do not ever take cash from an ATM with your credit card, except in emergency situations. Because your credit card will be charged by high interest.
3. You better not only pay the minimum installment every month. Because the monthly interest could reach 3.5 percent.
4. Limit the ownership of credit cards only 3 pcs.
