So, let’s start with this — what’s the point of having a credit card in the first place?
💳 Why use a credit card?
1. Promotions and cashback programs
Various promotions, cashback offers in supermarkets, and loyalty schemes — logically, if you can earn something back from your purchases, it makes sense!
However, you have to stay aware of the risks, which we’ll discuss in a moment.
2. Financial safety net
A credit card can serve as a backup for emergencies — when you suddenly need to make a larger purchase.
Most cards come with an interest-free period of up to 50 days, giving you time to receive your next paycheck, close a deposit, or withdraw funds from your investments.
3. Travel convenience
When traveling abroad, especially when booking hotels or renting cars, having a credit card is often mandatory.
It serves as security for the provider, allowing them to temporarily block funds in case of issues like unpaid minibar charges or vehicle damage.
⚠️ Common mistakes when using credit cards (based on years of banking experience)
1. Treating it like “free money”
Easy access to funds can tempt you into buying unnecessary things, leading to debt accumulation and failure to repay the full balance on time.
2. Paying only partially — despite having funds elsewhere
Many people get used to using the card regularly and then don’t fully pay off the balance, even though they could.
As a result, they’re charged interest on the remaining balance — often small monthly amounts, but enough to cancel out any cashback gains.
3. Ignoring the minimum payment rule
Credit cards require a minimum repayment (usually around 5%).
Skipping this even once or twice — even for a tiny balance — is reported to the Credit Information Bureau (BIK) and can harm your credit history.
✅ In summary
A credit card can be useful, but only if you use it wisely.
If you know that you’re not disciplined with spending or repayments, it’s better to stay away from this product altogether — because in such cases, a credit card can do more harm than good.
