First: Pay the annual fee

Credit cards may seem complicated, but the fees mainly include two parts: one is the annual fee, and the other is overdraft interest. By making good use of the preferential annual fee policies provided by most banks, we can pay the annual fee. For example, general banks stipulate that if you pay 6 times a year, you can be exempted from the annual fee. If you have multiple credit cards, you can focus on one of them when making small purchases at the beginning of the year. This way you can avoid being charged an annual fee because you forget the number of times you swiped the card.

Second: Link accounts, use two cards to travel the world

Although we need to make more use of the bank’s interest-free repayment period, we often forget the repayment date due to various reasons. . We can open a debit card or savings account at the issuing bank of the credit card, automatically associate it with the credit card, automatically repay the account, and automatically deduct and transfer the money on the monthly repayment date. As long as there is sufficient balance in the debit card one day in advance, we can avoid the risk of overdraft interest.

Third: Pay careful attention to the interest-free repayment period

The characteristic of credit cards is that you consume first and then pay back. The interest-free repayment period of different banks is slightly different, ranging from 20 days to 20 days. The longest one can reach 56 days. In the actual operation process, special attention needs to be paid to the credit card billing date, repayment date and actual consumption date. For example, the billing date of a credit card is the 5th of each month and the repayment date is the 30th. Then each bill will be calculated from all consumption from the 6th of the previous month to the 5th of this month. On the 30th, it will be You need to repay the amount on the last accounting date, otherwise you will need to pay overdraft interest. If the actual consumption date is the 6th of this month, then the recorded time for repayment is the 30th of the next month, so there will be an interest-free repayment period of 54 days; if the consumption is on the 5th of the month, then the interest-free payment period will be The repayment period is only 25 days, the consumption difference is one day, but the interest-free repayment period is 29 days different.

So, it is best to start consumption on the second day of the accounting date. Selected spending days give us an extra month to use this overdraft funds.

Fourth: Make good use of promotional co-branded cards

Nowadays, whether it is banks, shopping malls, travel agencies, airlines or insurance companies, many good co-branded cards are launched for promotional purposes. For example, VIP co-branded discount cards in stores, airline co-branded mileage points cards, etc. Some fund companies have also opened services that convert card points into monetary fund shares. Ask about your credit card’s preferential policies before spending, and you’ll often get unexpected surprises.

Fifth: Gold card and platinum card, showing your status while enjoying benefits.

Different credit card levels reflect different identities. Banks have launched gold card and platinum card VIP services, allowing cardholders to enjoy many special privileges, such as bank VIP services, airport VIP lounges, free golf sessions, and free physical examinations, fully reflecting their VIP status.

Sixth: Installment payment, interest-free loan

When trading bulk commodities, such as cars and household appliances, many merchants can provide installment payment services through credit cards, and even Some are also free of handling fees and interest. We can make full use of these activities and earn the time value of money in vain.

Seventh: Use overdraft withdrawals as little as possible

The cash advance withdrawal function provided by most credit cards is equivalent to adding a temporary emergency reserve fund to us, but we need to pay a handling fee. And there is no one-day interest-free period. In this way, cardholders not only have to pay a 1% handling fee, but also pay overdraft interest of 0.5% per day, so under normal circumstances, they should use it with caution to avoid causing excessive losses to themselves. Even if you have money on hand, try to keep it in a debit card so you can withdraw cash when necessary.

Eighth: Keep it properly and use it with caution

After receiving the credit card, you should immediately write your name on the signature column on the back of the card. When using the card, you should take good care of your credit card and store the credit card, personal password, and ID card separately to avoid being stolen if lost. When handling business at bank ATM machines, you should also pay attention to whether there are any suspicious devices. If your card is swallowed for no reason, you must stay at the scene and call the bank service center for help. During this process, you must not disclose your password information to any organization or individual.

There are more and more credit card frauds nowadays. If you receive any phone call or text message reminding you of a debt, do not call back. Instead, you should contact the bank’s service hotline to avoid giving criminals an opportunity to take advantage of it. opportunity.

END

Notes

Consume rationally and do not be dazzled by incentives and promotions offered by banks or merchants. Repay on time, keep in mind the billing date and repayment date of your credit card, and repay in full and on time within the interest-free repayment days. Do not store large sums of money in credit cards. Not only will it not generate any interest, but the amount involved in the card consumption is actually paid by yourself from existing funds, and you will not be able to enjoy the benefits of spending first and repaying later brought by credit cards.