It's undeniable that in this era, credit cards have become like a trusted companion for many. With the application process for credit cards being much simpler than in the past, there are many people interested in applying for credit cards. However, because the application process is so easy, you might overlook some important details related to credit cards.

Credit Card

Credit Cards and Things You Might Not Know

Using a credit card makes shopping much easier and more convenient. However, when the bill arrives at home, it may raise some questions for you. Rabbit Finance will help you discover the secrets of credit cards in more depth, so you can maximize the benefits of your credit card.

- Changing the Billing Cycle

Typically, banks have a fixed billing cycle and payment due date. However, there may be some months when the billing cycle coincides with a bank holiday, causing the billing date to be moved up by one business day. If the payment due date falls on a holiday, it will be postponed to the next business day.

For example, if the billing cycle is on the 25th and the payment due date is on the 15th, if the 25th falls on a Sunday, the billing date will be moved to Friday the 23rd, and if the 15th falls on a Saturday, the payment due date will be moved to Monday the 17th instead.

- Pay Early to Increase Your Credit Limit

If you want to use your credit card for a purchase because of a special discount or to earn points from a promotion, but your current limit is insufficient, you can pay before the due date.

For instance, if your credit limit is 50,000 baht and you've used it all, but you need to buy a plane ticket costing 25,000 baht, you can pay 25,000 baht in advance and then use your credit card to purchase the plane ticket to receive the discount or accumulate miles.

Credit Card

- Credit Limit Can Be Converted to Cash

For credit card holders who need cash but want to avoid fees when withdrawing cash from a credit card and don't want to incur interest on cash withdrawals, it is recommended to contact the Call Center of the bank that issued your credit card and request to convert your credit limit into cash instead, which can be repaid in two ways:

- Fixed Interest Rate

This is a short-term repayment plan with equal monthly payments. Generally, the interest rate ranges from 0.55% to 0.99% per month, with repayment periods available from 3 to 10 months.

- Reducing Principal and Interest

This is a long-term repayment plan where payments decrease each month. The interest rate ranges from 13% to 20% per year, with repayment periods available from 3 to 36 months.

Credit Card

- Change Your Credit Card Billing Date

Each bank usually has a fixed billing date, but you can change your credit card billing date to better suit your spending and payment habits by calling your bank.

However, be cautious if you have a credit card for installment purchases as there may be overlapping payment cycles between the old and new billing cycles, resulting in two payments being collected at the same time. Be sure to plan your finances accordingly.

- Request a Temporary Credit Limit Increase

If you need to make a purchase that exceeds your current credit limit or travel abroad, you can contact your bank to request a temporary credit limit increase. However, payments must still be made according to the original schedule, and you will know immediately whether the increase is approved.

Typically, temporary limits are valid for no more than 30 days, or some banks may extend it for up to 2 billing cycles.

Having read this far, I believe many of you now have a better understanding of how to use credit cards. You can see that credit cards offer a high degree of flexibility for your convenience. However, remember that spending through credit cards is essentially borrowing from your future income, so spend wisely to avoid accumulating large debts that can become unmanageable.

Thank you for the information from rabbitfinance.com.