Use credit cards correctly.

In recent days, netizens have been abuzz with the news that a bank account received a debt collection notice from the card-issuing bank for over 8.8 billion VND due to two credit card transactions in 2013 totaling 8.5 million VND.

This incident triggered a wave of people going to banks to close some of their credit cards, with some even closing all of them.

Owning multiple credit cards increases the risks for cardholders, such as losing cards, having cards stolen by criminals who then withdraw money, or making impulsive purchases and forgetting to pay, leading to bad debt and heavy penalties. If not handled properly, incidents with credit cards – as well as other types of bank cards – can negatively impact the trend toward reducing or eliminating cash payments. This is because these cards are among the key payment methods.

In fact, credit cards still offer many benefits and are used worldwide . The advantage of using a credit card is that it's easy to pay without cash and, especially, allows you to borrow money now and pay later. Credit cards are very beneficial for those who need to shop but don't have the money readily available, yet have the financial means to pay later. However, if you fall into credit card debt, you'll face very high interest rates, potentially up to 40% per year. That's not to mention the heavy penalties for late payments on the minimum payment period.

Credit cards offer many advantages, but users must always be cautious and know how to use them effectively. Those who are financially secure should only open one primary card and, if possible, add another card from a different bank as a backup in case of card malfunction. For those with sufficient financial means who prefer cashless payments, a debit card is a good option – meaning you only use your own money. When the balance runs out, you can top it up from your bank account or with cash. This method is safer than a credit card.

Experts and experienced card users advise users to install the online banking app of their card-issuing bank and enable the cardholder to receive immediate notifications via SMS or app whenever there is a change in balance. This way, if someone uses their card illegally, the cardholder can be aware and take timely action.

Source: https://nld.com.vn/su-dung-the-tin-dung-dung-cach-196240319201731135.htm