Notes from banks when using credit cards

Need to learn carefully before use

A credit card is a type of bank card that allows users to spend money up to a credit limit previously granted by the bank and pay later. The maximum amount spent is within the card limit granted.

Spend now, pay later is the convenience that credit cards bring to users. Along with the support from the infrastructure system promoting cashless payments that banks have invested in, it has created many opportunities for people to access superior features, as well as take advantage of the benefits that credit cards bring. In addition, many banks also allow linking credit cards with mobile applications so that users can easily pay with just their phones. This has contributed to the growth in the credit card market share.

Ms. Lan Anh, Hue city is one of the people with "seniority" in using credit cards, shared, I have used credit cards for quite a long time. At first, when using the card, I still had many worries, however, after understanding all the advantages and points to note when using the card, the credit card supported me a lot in spending.

“The bank’s “lending” of an amount of money within the granted limit for an interest-free period of 45-55 days helps me solve urgent problems that need to be paid without having to borrow from outside. In addition, I also use the credit card to buy items in installments, pay tuition fees for my children at the English center (paying annually will receive service incentives) with 0% interest. Therefore, the payment pressure is significantly reduced. Not to mention, if I ensure my spending according to regulations, I also get points, free annual fees… Ms. Lan Anh said.

However, overusing credit cards for personal expenses and “spending beyond one’s means” will lead to debt, inability to pay or face many other risks. According to Ms. Lan Anh, the money in the credit card is temporarily “lent” by the bank to the customer and must be returned immediately when the payment period comes according to regulations.

Need to regulate interest rate ceilings for credit cards

According to the regulations of some banks, customers with overdue credit card debt will have to pay late payment penalties and pay quite high interest rates depending on the regulations of each bank. When the debt is overdue, this debt may be converted into bad debt on the system of the National Credit Information Center of Vietnam (CIC), leading to difficulties in accessing credit later.

Currently, on the websites and newsletters that banks send to customers, there are specific instructions to limit debt problems and regulations and instructions related to credit card use.

Most banks note that to limit fines and other costs, customers should take advantage of the 45-55 day interest-free period to spend and should pay off the outstanding balance in full and on time to avoid interest and unwanted debt penalties. Limit cash withdrawals from credit cards because cash withdrawal fees are usually quite high. In addition, customers should only spend within their financial capacity to ensure they can pay and not let "debt pile up on debt".

Vietcombank Hue branch representative also recommends that customers need to keep credit card information safe, not share this information with others and avoid storing card information on unsafe devices. For hard cards, before using, the security number (CVV) should be sealed. Currently, giving the card to the cashier at the self-payment counter at a restaurant or lending the card to others for spending is a very common situation. This is an action that can easily expose card information. In case of card loss, it is necessary to immediately notify the bank that issued the card to lock the account or proactively temporarily lock it on the electronic banking application/website.

Regular transaction checks are also essential to help customers detect unknown transactions early to promptly resolve risks. In addition, customers should make it a habit to update warning information from the bank, customers can visit the bank's website regularly to check the latest notifications on finance and credit card security. This also helps customers update information and know the latest measures to protect their personal and financial information.

In addition to the recommendations from banks, users of banking services should also carefully study and read all information and terms of agreement between customers and banks to clearly understand the financial products they are using. If there is no need to use the account or related services, customers should contact the bank to temporarily lock or close the card, to avoid risks and annual fees during the time when there is no need to use it.

To enhance the security and safety of bank card operations and the rights of customers in the process of issuing and using bank cards, the State Bank of Vietnam has also issued a document requesting credit institutions to review internal procedures for issuing and using bank cards; review and publicize fees; notify customers if any unusual cases arise...

HOANG ANH