The best credit cards are those that often offer promotions. Moreover, the promotion lasts long and unbroken, aka there are always new ones when the old ones end.
Now, banks are increasingly aggressively offering the best credit cards that offer various promotions to boost customers. Of the many promotions, the form of offers can be grouped into three types, namely cashback, point rewards, and 0 percent installments.
But many people do not really pay attention to the usefulness of this credit card promotion. Credit cards are only used for shopping and shopping. They forget to maximize the benefits.
Cashback is a credit card promotion in the form of a partial refund of transactions made using that credit card. For example there is a 5 percent cashback promotion if shopping at a particular supermarket. You also use Rp 1 million for shopping. Then a cashback of $50 thousand will go into the credit card balance.
The funds can later be used to cut bill payments. For example a bill of $3 million. With a cashback of $50 thousand, only Rp 2.95 million needs to be paid.
But banks often set specific requirements for cashback . For example there is a maximum value in a month or cashback is only given once a month.
To maximize the benefits of credit card promotions in the form of cashback , you should collect funds up to a year so that the value is greater. Remember, cashback funds cannot be disbursed, but can be used to pay bills and annual fees.
What is also important, be very careful about the cashback’s requirements. There are banks that provide cashback based on nominal transactions. The greater the transaction value, the greater the cashback . For example, a 3 percent cashback for transactions of up to USD 1 million, 5 percent if transactions of USD 1-5 million, and so on.
Do not chase the cashback and then trade as you want. If the nominal is small, automatic cashback is also small. Not worth the amount of expenditure for shopping using a credit card.
Cashback benefits can also be obtained maximally if you use the best credit card that is focused on the cashback program. This type of credit card is for those of you who like to hunt for cashback.
Similar to cashback , point rewards are given for each transaction using the credit card. Credit card promotions in the form of points can be exchanged for various facilities, from airline tickets to free annual fees.
The way it works is that points are awarded if credit cards are used for shopping, especially at merchants that work with banks. The greater the transaction value, the more points.
Usually, this point is only valid for a year. After a year, points are forfeited.
Therefore, to take maximum advantage of this credit card promotion, first target the points that will be exchanged for. See the card issuing bank’s website for a list of exchanges.
After that, use a credit card naturally. Here are the keywords: naturally. Target, OK. Hunting points, please. But do not get caught up in the consumption lust so that playing string is only to catch up on points.
If you only pursue points, the benefits cannot be taken to the maximum. There is one trick to add points without spending money. For example there are friends or relatives who want to buy something, offer to pay using your credit card.
Of course he must replace it with money in accordance with the price of goods. Or lunch with colleagues at the mall, bail out using a credit card. That way, you can get points without spending a dime. You can also look for the best credit cards that focus on offering point rewards to maximize points.
Zero percent installments
Credit card promotion in the form of 0 percent installments is very attractive in the midst of the many finance companies or online digital platforms that serve high-interest fund lending. 0 percent installment means that there is no interest on installment payments every month until it is paid off.
You want to buy the latest smartphone for $8 million, for example. If the merchant who sells the cellphone has a 0 percent installment partnership with your credit card issuing bank, you can pay in installments according to the base price. For example, a 12-month tenor means that there is a monthly bill of around USD 666 thousand.
How to maximize the benefits of this credit card promotion is by looking at the needs. Be sure to use it only to buy items that are needed, not desired.
Distinguish between needs and wants. Needs if not fulfilled will disrupt living conditions. While unfulfilled desires have no effect.
For example, cell phones have often restarted themselves or are slow because they are too old. That means you need a new cellphone to keep communication smooth. Imagine if there is an emergency situation, for example an accident family member, and the cellphone suddenly turns itself off. It could be fatal as a result of not being able to immediately contact the ambulance.
Credit card promotions should be able to be used by all users in order to reap maximum benefits. It’s a loss if you already have the best credit card but neglect to get the benefits from the roots.