Five Tips on How to Use a Credit Card Like a Pro
The economy is dreadful, so every baht we spend must really be worth it. Owning a credit card right now seems like a risk for some people since it can lead to a dangerous habit of thoughtless spending. Today we have five tips on how to use a credit card like a pro so you can spend your money wisely and not end up in debt!
Always go for the “0% interest installment plan”
If you’re going to buy something in installments with your credit card, whether for three months, six months, or 10 months, always pick the option that offers a 0% interest rate. You already have to pay your credit card annual fee, so if you can avoid paying more interest, it’s a better option.
Look for promotions
Each credit card is different. I suggest you look for promotions that come with it in order to make the most out of your spending. Some stores or restaurants offer promotions for payment with some credit cards, like more points for collection or cash back. Be observant when shopping.
Pay your monthly bill on time
This is important: pay your monthly bill on time. And not only that, know how much you need to pay, what the interest rate is, what the minimum rate is, and how much money there is left. This way, you will know how much to spend and never exceed your monthly limit. Don’t be too reckless while spending or you’ll be greeted with more interest than you should pay.
Do not use your credit card to withdraw cash
I think this is an easy way to avoid paying more than you should. Do not use your credit card to withdraw money from an ATM. This is no difference between that stabbing yourself in the stomach because paying the 25% interest rate will hurt you just the same. To clarify, the interest rate for using your credit card for cash withdrawal is 25%, which is basically paying Bt250 for every Bt1,000 you withdraw. Doesn’t that sound terrifying?
Pick the right card for your lifestyle
Each person has a different lifestyle, so each card is different for everyone. If you travel and shop a lot, you might want a card that is designed especially for travelling and shopping. But remember that you still need to be mindful of your spending. Don’t go swiping so much that you’ve amassed a big amount of debt without realising it.
To be fair, credit cards have their scary attributes, but with some discipline, they’re not as risky to use as they’re sometimes made out to be. You just have to know what to buy and when to buy, check the promotion thoroughly, and pick the best payment option, like a 0% interest rate.
If you really need to cut down your shopping frenzy, I suggest an easier way to hold yourself back: before every purchase, take a deep breath, and ask yourself if you really want the things you’re about to buy. Try not to buy on impulse. Go and walk around the department store first. If you really want the item, you can always come back for it later.
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