Use credit cards properly

In recent days, netizens have been heated up by the incident where an account was sent a notice by the card-issuing bank to collect a debt of more than 8.8 billion VND due to 2 credit card payment transactions in 2013 totaling 8.5 million VND.

This incident led to a wave of people going to banks to close some of their credit cards, some even closed all of their credit cards.

The more credit cards you own, the more risks you run, such as losing your card, having it stolen by criminals and withdrawing money, or spending too much and forgetting to pay, which can lead to bad debt and heavy fines. If not handled properly, incidents with credit cards - as well as other types of bank cards - can negatively affect the trend of limiting and moving towards cashless payments. Because these types of cards are among the key payment methods.

In fact, credit cards still have many benefits and are being used all over the world . Using a credit card has the advantage of being easy to pay without cash and especially being lent by the bank first and paid later. Credit cards are very beneficial for those who need to shop while not having money available but have enough financial capacity to pay later. If you are in debt with a credit card, the owner will have to pay a very high interest rate, up to 40%/year. That is not to mention the heavy penalties if you pay late for the minimum payment of the cycle.

Credit cards have many advantages, but users must always be careful and know how to use them effectively. Those who use the card consistently should only open one main card and, if possible, add another card from another bank to prevent problems with the card. For those who have the financial capacity and prefer to pay without cash, they should open a debit card - that is, just swipe the card to spend their own money. When they run out of money, they can top up from their bank account or cash. This method is safer than credit cards.

Experts and experienced card users advise users to install the electronic banking application of the card-issuing bank; at the same time, choose the card settings so that whenever there is a change in the balance, the bank will immediately notify the cardholder via SMS or via the app. Thanks to that, when someone uses their card illegally, the cardholder can know and handle it promptly.