Some things to keep in mind when using credit cards

Currently, credit cards are increasingly popular and used by many people. A credit card is considered a tool to help you pay your expenses, shop without cash.

A credit card can be a tool to help you spend first, pay later, but it has even more benefits. When used responsibly, a credit card can help you build a good credit history, get preferential loans, or buy cheaper insurance. Credit cards can also help you redeem miles or receive refunds when traveling or shopping.

If you know the principles of operating cards to equip yourself with the knowledge of using smart cards, it is easy to comfortably spend with credit cards.

What is a credit card?

Credit Card (Credit Card) is a type of bank card that features payment without money available in the card. In other words, you will borrow money from the bank to pay and at the end of the period will need to pay the bank in full. The credit card amount issued by the bank is called a credit card limit. Depending on the card opening record as well as the conditions that you meet with the bank, the limit will be different or low. Once approved by the bank and accepted to open a credit card, you can use it to pay utility services such as shopping, entertainment, travel . very convenient.

So when opening the card and using credit card, what should the user notice?

Understand to enjoy the maximum benefit

To fully utilize the utility features of credit cards, you first need to clearly identify the credit card's capabilities, credit cards used instead of cash when shopping to avoid theft. Therefore, when using the user should be responsible for your account, because the amount of money in the card is the money you are "advanced" and will have to return it according to the time and regulations from the card provider.

Learn how the card works

Currently users have a lot of choices when opening a card by outside the bank, the financial companies also develop boys to open credit cards. Therefore, when there is a need to open the card, users should find out about card issuers, card lines, card limits and other types of fees to have the most suitable choice.

After finding the card issuer in accordance with your solvency, you can contact to register for card opening. The opening of the card is now done very quickly and simply, banks and financial companies will assist you to simplify all procedures.

Register to use the card

Before registering a card, you should take the time to find out the terms on the application / contract or the website that the bank or finance company makes to make the best decision. If during the inquiry process, there are any questions that need to be answered, you can contact the hotline directly to get the advice card staff.

After registering, you can request a copy of the application / card issuance contract with the signatures and certifications of the parties involved.

Activate the card

After receiving the card from the issuer, the user needs to activate the card before using it. Currently, there are 3 commonly used ways when activating a new card: sending an SMS message to the switchboard to activate the card; contact the operator to activate the card; staff of the contact card issuer to activate the card.

In case the contact person activates the card over the phone, listen to the employee's exchange content. They will announce the purpose of the call and verify your information. Your credit card can only be activated after successful activation.

Basic fees

Annual fee: An annual service fee for maintaining credit card accounts and card benefits. Annual fees are usually charged when you activate your card or receive a card. In order to support customers, the annual fee of FE Credit card is only calculated after the customer successfully activates the card and generates at least one transaction on the card.

Cash withdrawal fee: Cash withdrawal fee is the fee calculated on the amount of money you withdraw after each withdrawal at ATM offices.

Late payment fee: The amount payable if the payment is not paid in full and on time. The monthly statement contains information about the total amount spent in the payment cycle, the minimum payment amount and the payment due date. If you forget your payment, incidental charges will automatically convert into credit outstanding and affect your credit score.

Owning credit cards will bring many benefits in emergencies such as accidents, school fees, home repairs . However, you need to be responsible for your credit card and regularly check delivery translate to make sure the expenses are reasonable.

See more:

1. List of official names and websites of 57 banks in Vietnam
2. Basic banking services: accounts, cards, account numbers
3. How to calculate bank loan interest rates in May