Nowadays, using more than one credit card has become a part of life for many Thais. Financial institutions that issue credit cards offer various promotions and special privileges to attract users, resulting in an increasing number of credit card holders each year. However, credit cards can have negative effects if used improperly, as it is often heard that many people are in credit card debt. The main reason is that they spend beyond their means without careful consideration. Therefore, we bring you some secrets(not) to using credit cards to share with everyone.

        Control Your Spending

        Each month, we need to manage our salary by deciding how much to save and how much to allocate for regular and irregular expenses. The same goes for credit card usage. We should determine in advance how much we will spend on our credit card to match our income. If we plan to buy a large item, such as furniture or a new smartphone, we must ensure that we have saved enough specifically for that purchase so that we can pay off the credit card bill when it’s due.

        TIPS: If we don’t have enough cash, we shouldn’t swipe our card to buy that item. Using future money to pay for something we can’t afford now is like opening the door to high interest rates of up to 20%, which may lead to the enemy of “credit card debt” entering our lives.

        Use Appropriately

        Credit cards are designed to provide convenience to cardholders and reduce the risk of carrying cash. If we have a card and need to make a large payment, we don’t have to carry a bag of cash, which is at risk of being stolen. If we go shopping and don’t have enough cash, we won’t feel disappointed if we can’t buy something. With a credit card, these situations are less likely to occur. For instance, if we take our family out to celebrate our mother’s birthday but realize we brought too little cash, we can use our credit card instead. This shows that credit cards are suitable for irregular expenses and unexpected emergencies.

        Pay in Full and On Time

        As we all know, credit card interest can be extremely dangerous. Interest is only charged when we make partial payments, pay the minimum, or fail to pay at all. The card issuer calculates interest from the date they pay the merchant. Therefore, to avoid facing credit card interest, we must pay our credit card bills on time. Late payments may incur penalties, and we must pay the full amount, not just the minimum of 10%, because the remaining balance will still accrue interest.

        TIPS: For those who fear late payments or cannot pay in full, we recommend creating a separate account specifically for credit card payments. Whenever you use the card, transfer the money into this account immediately, so when the billing cycle comes, it can be deducted automatically.

        Keep an Eye on Promotions

        If we can take advantage of the promotions offered by each credit card, that would be great. For example, the Thanachart Bank Diamond MasterCard offers cashback of up to 3.5%. Therefore, every time we fill up gas anywhere in the world, we get cashback. Instead of paying cash or using another bank card without this promotion, we choose to use the Thanachart Bank Diamond MasterCard to at least get something back.

        If we are looking for a new credit card and come across the AEON Royal Orchid Plus World MasterCard, which collaborates with Thai Airways, it offers various benefits for card applicants, such as 5,000 bonus miles when spending 10,000 THB within 30 days of card approval, access to the Royal Silk Lounge at Suvarnabhumi Airport, or 30% cashback when purchasing economy class tickets by redeeming points equal to the ticket price (unlimited times). If we love shopping, traveling abroad, staying in hotels, and dining out, this card fits our lifestyle perfectly. Applying for this card will provide us with many desirable benefits.

        Therefore, if we know how to use credit cards appropriately according to our financial situation, pay off debts in full, avoid late payments, use the card mindfully, and keep up with news for the benefits of credit card users, credit cards will never bring us debt troubles. Try applying these techniques for the utmost benefit to yourself.

        For those looking for a credit card that matches their lifestyle, you can easily compare at masii, ensuring satisfaction. For those with multiple credit cards, if we use them appropriately, not overspending, and choose cards that align with our lifestyle, then credit card debt and interest will no longer be a scary issue.

Thank you for the information from www.masii.com