CREDIT CARD

Nowdays people don't use cash for big transactions, sometimes in small transactions they don't use it too, they said that it was old fashion. People especially in modern country, use credit card. Briefly, if you have credit card, it means that you can buy something when you don't have any money. The payment system of credit card is on the ending of the month.

Beside this card has advantages, it also has disadvantages. The advantages are able to buy needed items now, don’t have to carry cash, and creates a record of purchases. The first advantage means that when you don't have any money on your pocket, you can still buy the item that you want. For example, when you want to buy limited edition shoes now, you can just use that card, although you don't have any money on your pocket. The second is don't have to carry cash. Beside it's not efficient for bring many cashes, it also unsave for you. The last is creates a record of purchases. In the end of the month, you will recieve a list of what you purchases. This system can help you to maintaining your money in the following month.

The disadvantages are interest, may require additional fees, and increased impulse buying may occur. When you buy something with credit card, sometimes the company will be adding an interest for it. As example, using your credit card you buy a handphone for 10 months. The price is 10 million rupiahs with the interest 10% each month. So, each month you must pay 1 million rupiahs and 100 thousand rupiahs for the interest. The second is the additional fees. That additional fees sometimes called surcharge and it will be seen on your bill. The last is your impulse buying may occur, or you can say that you will hard to control your wants to buy something.

Before you decide to make a credit card, you should think about threeCs. There are character, capital, and capacity. The first is character. The questions that describe the meaning of character are will you repay the debt? From your credit history, does it look like you possess the honesty and reliability to pay credit debts?

After character is capital. The questions that describe the meaning of capital are what if you don’t repay the debt? Do you have any valuable assets such as real estate, savings, or investments that could be used to repay credit debts if income is unavailable? The last is capacity. The questions are can you repay the debt? Have you been working regularly in an occupation that is likely to provide enough income to support your credit use?

After you decide to make a credit card, you should know that using credit card means that you borrow some money from the bank. Because of that, you have a responsibilities. There are borrow only what you can repay, read and understand the credit contract, pay debts promptly, notify creditor if you cannot meet payments, report lost or stolen credit cards promptly, and never give your card number over the phone unless you initiated the call or are certain of thecaller’s identity. If you can follow it, you will not get blacklist from the bank and you can feel the advantages more. Sometimes, the bank also give a prize to the good client.