4 Things Millenials Should Know About Credit Cards

Many millennial groups who just got credit cards or just apply credit card online do not know the full function, and the right way to use credit cards. If you just got a credit card, or you’re considering getting a credit card, we’ll give you 4 tips about credit cards that you might not know before.

Credit card

Credit card points have expiration dates

Many people like to use credit cards when shopping because they can easily collect credit card points. Then the accumulated points will be used to redeem both goods and vouchers. However, perhaps many do not realize or forget the date they forgot the reward points.

Therefore, the next time you plan to redeem your credit card points, do not forget about the expiration of the points. We recommend checking your points every year and redeeming for the highest value items or vouchers. This can reduce the wastage of your credit card points.

Credit cards should not be used as loan sources

Credit cards are designed to provide convenience in terms of payment and additional savings through cash points or rewards. However, many millennium groups take advantage of the cash advance feature and consider it as a quick financing to solve their financial problems.

If you have financial needs that can be delayed for a few weeks, you better get a personal loan. With interest rates at only between 6% and 8% on average, you can save more on personal loans than using credit cards charged up to 18% per year.

Credit Card Instalment Plan Doesn’t Mean Your Limit Increased

When you buy high priced items, you will be charged at full price even if you pay them by using your credit card instalment plan. That is, you actually owe bank money and repay the agreed periods of up to 12 months. However, many misunderstand this plan and assume they still have a lot of credit limit to spare as they only pay a small amount each month.

Therefore, in the future you plan to make a huge purchase, you need to consider the credit limit you leave and your financial capability to finance it every month.

Not Using a Credit Card Is Doesn’t Mean You Will Have a Good Credit Score

Instead, having a credit card can help you to maintain a better credit score if you know how to use it properly. This is because, if you do not have a credit history, the bank is hard to know about your ability to pay off debt. Therefore, they may consider it a high risk to approve your loan application compared to individuals who have a credit card.

Therefore we recommend placing your credit card with no annual fees and using it for minimum expenses such as gasoline or daily expenses. As long as you pay credit card debts on time, you will be on the right track to achieve excellent credit scores.


We hope you now have a better understanding of how credit cards work and how to avoid getting caught in the trap.