5 Terms on Credit Cards You Need to Understand

The terms on a credit card, there are so many and of course you may have heard it very often. However, even though it has been written everywhere, it is not impossible that we are still often confused with terms in the world of credit cards.

To shorten time, let’s look at each of these terms:

 

Due date

Due date

The due date means the date specified as the deadline for payment of credit card bills. If you, as a credit card customer, forgetting mistakes or even without being able to pay credit card bills past the date stated in the billing statement, the bank has the right to impose a fine of (on average) 2.95%.

To avoid this fine, you should pay your bill not past the due date. Confirm with the bank the details of the due date, for example if the due date turns out to be on a holiday, or the length of payment received by the bank if using the ATM transfer method, bank transfer, or other methods.

 

Credit score

Credit score

Credit scores or credit scores in Indonesia can also be referred to as SID, Debtor Information System. Credit score or SID is a rating system whose parameters have been determined by a banking community. This credit score is more or less what will determine you are eligible or not given a loan.

If you are a recalcitrant customer or because of circumstances often late to pay credit card bills, then your credit score is certainly not so impressive in the eyes of the bank. Perhaps even, the worst thing is that your name is on the Indonesian bank’s blacklist, although as ordinary customers we cannot examine it directly. Of course this less impressive credit history will make it difficult for you when you want to apply for a loan in the future.

 

Credit Shield

Credit Shield

Shield in Indonesian means to protect, so that credit shield is more or less meaningful credit protection for credit card customers, if one day credit card customers are unable to pay their credit card bills.

In fact, the credit shield allows credit card holders to be freed from the obligation to pay credit card bills if the cardholder experiences an accident, which results in disability or death.

 

Credit card cash

Credit card cash

Credit card cash funds are funds that are specifically offered by telemarketing to the concerned credit card customers, who happen to be in need of low interest funds (generally under 1%).

Indeed, your credit card can actually be used to withdraw cash at the nearest ATM, but cash withdrawals in the ATM are often burdensome as well as being charged a fee of 3% per month.

 

0% installment

0% installment

The term installment of 0% is often found in merchants, both online and offline, when walking around the mall, or accidentally find it when browsing the latest gadgets.

If you find that 0% installments are posted on the storefront or online merchant, then that means the merchant is working with the credit card issuer, to provide interest-free installment facilities for a certain period of time.

For example, you accidentally find the latest gadget sold at online merchants with a 0% installment mark for 12 months using a credit card A. If the price of the gadget is 6 million, then you will pay 6,000,000 / 12 = 500,000, more or less you have to pay credit card bills for the gadget’s needs, amounting to $ 500,000, – without any additional interest.

That’s the 5 terms that you might not really understand even though you already have a credit card. Well, just make sure you use a credit card smartly.

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