Applying for a credit card is certainly very tempting for some people; the process is easy and offers convenience in shopping and transactions. Young people today can certainly be easily attracted to applying for credit cards.
Using a credit card, although it can be very profitable, can also have a negative impact if you don’t use it wisely, you know. For example, shopping exceeds the limit of credit card funds to result in debt outside of ability.
With the pluses and minuses, the right time to have or apply for a credit card needs to be carefully considered. When is the best time for you to have a credit card?
If you already have a condition or reason as below, you might be able to immediately plan to apply for a credit card. What are the conditions and reasons?
Already Have a Job and Permanent Income
Using a credit card is arguably the same as applying for a loan. That means you have debt. You use a credit card to buy something, then pay the bill at the end of the month.
To be able to pay credit card bills at the end of the month, you certainly need a steady source of income. Without a stable job and income every month you can have difficulty paying credit card debt.
Therefore, if you want to use and feel the benefits offered by credit cards, it’s good when you already have a job and a steady income every month.
As mentioned, using a credit card can be the same as debt. So, if you previously have another source of debt, you might be overwhelmed when paying bills.
For a balanced financial situation, you should not apply for a credit card if you have not paid off your other debts. Make sure you have a minimum debt of no more than 30% of total income before applying for credit card making.
This suggestion is not only to keep the flow and expenditure of money healthy, but also to prevent greater financial problems in the future. You definitely don’t want to be stuck in debt for a long time, right?
Open a side business
Have the intention to open your own business? Or open a small side business? You can get capital for the business using a credit card.
As long as the business capital does not exceed the credit card limit and is still within the capability limit, you can have productive debt with a credit card.
There are many types of side and small businesses that can be funded by credit cards, such as credit agents, online businesses, or creative businesses, such as accessories and knitted products.
Well, if it is already running and starting to develop, you can apply for a Loan without Collateral (KTA) loan to get greater capital.
You Can Use Money Wisely
The problem that often arises with credit cards is users who cannot hold back when shopping to exceed the limits that can be paid. If so, there will be a large debt that needs to be paid as well as other possible financial problems.
You definitely don’t want something like that to happen, right? Therefore, it’s good to start controlling your shopping desires by focusing only on the items that are needed.
If without a credit card, it is difficult for you to refrain from shopping, with a credit card may be more difficult.
As motivation and prevention, when using a credit card you can continue to remind yourself that using a credit card is the same as having debt. So, if you don’t want to have lots of debt, use a credit card wisely.
Credit Cards For Investment Purposes
In addition to opening a business, credit card applications, such as applying for an online credit card, can be a source of funds for investment. For example, buying gold bars with a credit card.
Because the price of gold changes very quickly, you need to buy gold when the price reaches its lowest point. To be able to directly buy, you might not be able to provide money quickly, that’s when you can use a credit card.
However, remember yes, try the weight of gold purchased or other investment product costs remain within credit card limits. So, the following month you are still able to pay bills and the investment is not disrupted.
Credit Cards to Support Activities & Hobbies
Credit cards can also be used to get various promos and cashback, especially those related to hobbies or daily activities.
Promo applies credit card, for example, you can shop monthly at certain supermarkets that provide discounts if using a credit card. You can also get other promos when dining with family in restaurants. Even if you travel, buy a plane ticket using a credit card can also get a lot of attractive promos.
Very useful, right? As long as you use it to help with activities and fulfill needs, credit card bills will not feel too heavy. Conversely, if only spent on shopping, your expenses can be very wasteful.