Rules to remember when using a credit card
When making online payment, you only need to enter the information printed on the card with the CSC number – card security code to be able to make the payment. If the cardholder shares this confidential information with many people, the risk of personal information theft is very high.
Credit cards do not require a PIN when making transactions at the checkout. This is convenient and easy for cardholders but it is very risky if it is lost. So, when you lose your credit card, you should call the bank to request a card lock, avoiding the unfortunate risks.
Using a credit card means borrowing
Unlike a Debit card or ATM, the amount used to pay is actually the amount you are borrowing from the bank with 0% interest rate (for 45 days interest free). By the time of payment, you still have to repay all the money “temporarily borrowed”. If the cardholder has not been able to pay the entire outstanding loan to the bank on the payment date, the bank will start charging a fairly high interest rate (about 26% to 31%) based on the current outstanding balance on the credit card. Therefore, when making transactions using credit cards, you should consider your ability to repay your debt at the end of the month, avoiding the risk of falling into debt.
Pay attention when giving the card to the cashier
Many credit cardholders when shopping at restaurants, shopping centers often give their cards to the cashier so that they can make payment and never pay attention to the card. This habit can put the cardholder at a high risk of personal information theft if the employee accidentally captures confidential information printed on the card.
Therefore, when giving the card to the waiter or cashier to swipe the payment card, you should pay attention to direct supervision of the employee swipe process, and carefully check the information on the printed paper slip.
Pay attention to the time of payment
Depending on the credibility of customers, the bank will issue different credit limits. Credit cardholders will receive a 45-day interest free “provisional” loan. After this period, if the cardholder is late in payment or only pays the minimum amount, the bank will start charging interest on the total closing balance of the statement as well as collecting late payment penalty. Therefore, credit cardholders should have plans to control spending, ability to pay on time to enjoy preferential interest rates, limit the fees incurred.
Do not use credit cards like ATM cards
Banks do not recommend using credit cards to withdraw cash like ATM cards. Therefore, if you use a credit card to withdraw cash, you will incur a fairly high fee (usually 1% – 4% of the amount withdrawn). Therefore, cash withdrawals should only be made with credit cards when absolutely necessary.
If used smartly and properly, credit cards are a very useful means of payment, preventing many risks when paying with cash. On the contrary, if used without control, it is easy for credit cardholders to fall into the debt spiral. Therefore, when using a credit card, cardholders need to master the important principles as well as balance loan needs with the ability to repay.