Artikel diperbarui pada 20 September 2023.
Credit Card Function – Along with the development of increasingly sophisticated technology, credit cards are now used as a support or fulfill life needs.
Information about the meaning, use and function of credit cards is increasingly sought after. Most people want to apply for the card in order to get benefits.
Credit Card Definition
In general, the definition of a credit card is a means of payment. The usual use of a CC is as a substitute for cash.
So, this tool can be used by all customers to be exchanged for some kind of goods or services that they want to buy. Usually this is called a merchant.
Another definition of a credit card is a card issued by the bank.
Then, its function can be used by all customers, so that they can make transactions or purchase goods and services without using cash. So, it can be said that it is still debt.
As electronic money, this credit card has many types. In fact, each bank must also have various types / variations of CC.
This can be adjusted to your needs or daily needs. Because each card there will be subject to different limits.
Uses of Credit Cards
As discussed earlier, this credit card is one of the electronic tools or cards that are usually widely used in order to pay for something.
For example, in the purchase of goods and services. So, this method is also considered as debt.
1. Can Make Transactions Easier
One of the benefits of using a credit card is that it can make transactions easier.
Let’s say you buy an item with a high price, 10 million for example. Of course it’s not enough in the wallet, right? The use of CC is what facilitates payment.
Even for transactions with small amounts, it will definitely be seen. For example, if you shop at a supermarket.
The cashier or buyer no longer needs to count sheets of money when they want to pay or give change. Just use a credit card and everything is done.
2. Can Avoid Additional Fines
Another benefit of a credit card is that it can prevent overspending. Such as in paying electricity, water, cable television or even telephone bills.
Of course, everyone has different activities. Some are even too busy working, so they forget to pay.
One of the keys to avoiding these additional payments is by using a credit card.
So, you can try contacting the operator of the service provider to be able to make payments automatically. Like paying a regular bill.
3. Being a Medium of Exchange Abroad
The usefulness of a credit card that can help you fully, is that it can be used as a medium of exchange abroad.
This card will be very suitable for customers who like to travel abroad. Even the use of cards has many types from every bank in Indonesia.
There are two types of credit cards currently in circulation in the country, namely Mastercard and Visa.
It depends on your credit card network, making transactions abroad can be done without exchanging money again. So, the nominal will be converted to rupiah and according to the exchange rate.
4. Can Manage Finance
When using a credit card, all transactions made will be recorded properly and structured.
Since the expense data is in the billing statement, everything is complete because there is a transaction hand. That’s why using a CC allows you to manage your money.
By using this credit card, you can refer to last month’s expenses to be able to manage finances in the next month.
Of course, it is different from recording expenses manually, it does not rule out the possibility of errors or even unrecorded.
5. Can Relieve Expenses
It is possible that everyone wants to minimize their expenses.
In order to realize this, you can use a credit card. Because, with its use, the expenses will be much lighter.
These promotions include cashback and discounts. It is possible that every type of credit card must have such services.
That way, you can ease the burden of expenses because you get a discount when making transactions.
Credit Card Function
As one of the electronic tools that are often widely used in making transactions. This credit card has a general function that is usually always a mainstay in transactions.
That is why the use of this CC is often used as a support for life needs. Here is a review of Dolarhijau regarding credit card functions.
1. As an Emergency Fund
Many people do not know and question what the function of a credit card is.
One of the functions of using a credit card is as an emergency fund. As the name implies, this fund will be needed when the time is really emergency or precarious / sudden.
Everyone must have a need and it does not rule out the possibility if there is something impromptu.
For example, like getting a disaster such as an accident, you will never know even though you are careful.
The name of the disaster will never know, so the funds from using this credit card can be used as an emergency fund. All costs can be covered.
2. As an Opportunity Fund and Form of Expenditure
Then, the function of credit cards in general is as opportunity funds.
As the name implies, this fund will be used by customers when they want to make investments or look for business opportunities that will not necessarily come the second time. So, basically a golden opportunity.
The use of credit cards is also often used as a form of spending in spending. So, the funds spent will be even more efficient.
For example, the use of CC in paying routine bills, such as telephone, electricity, water and many others.
Especially for this part, whether the function of BCA, BNI, BRI, or Mandiri credit cards is the same.
3. Can Record Costs and Clarify Expenses
The next credit card function is that it can be used as a cost record. Usually, every customer is never separated from the name of the transaction for the purchase of goods.
The purpose of this recording is so that customers can minimize expenses by managing routine money.
It is possible that customers often experience excess spending. So, almost all the money runs out to buy this and that item.
With the use of this credit card, all types of expenses will be clearly recorded in the checking account. You can even cross check at the end of the month.
4. Used as Insurance and Online Payment Service
The use of credit cards brings many benefits to each customer. You can use CC as a form of insurance service.
For example, accident, health, theft or even travel insurance. It can also be a service for goods that have been purchased.
The most important credit card function is also used as a form of making online payments.
In this increasingly sophisticated era, almost all stores in all regions use this card service. Not only in the country, but all over the world.
5. Crediting Goods With Only 0% Interest
Not only that, the function of this credit card has been proven to help spend and save.
One of them is to provide interest of around 0% only for customers who purchase any goods and wherever the store is.
With only 0% installment interest, this credit card is considered to have its own privileges.
However, you need to remember that not all types of transactions will have this 0% interest. It all depends on the merchant who will accept the card payment.
Wise Credit Card Usage
- For those of you who decide to use a credit card, even though it has many facilities that can facilitate transactions.
- Keep in mind that the card is also the same as debit, if the wrong use then the expenditure will also be greater than previously estimated.
- Therefore, in using a credit card you must be wise in using it. For example, limit the excessive use of CC, use one to two cards only do not overdo it. Do not also withdraw cash at ATMs, because there will be another fee on the bill.
- How to wisely use the next credit card, that is, never shop excessively.
- Organize which ones are important and must be purchased first, such as household needs. Also take advantage of card promotions correctly, for example shopping discounts. So, use it for monthly shopping.
That was a complete explanation of the definition, uses, and functions of credit cards above. Now you know that the card will be very useful if used properly. Just like saving money, use CC according to the important needs only.