The ease of purchasing electronic products through credit facilities, both through credit card installments and cash installments, requires that you as a smart buyer be able to compare the advantages and disadvantages of the two methods.
There are some things that are often questioned regarding credit purchase methods like that. First, whether the goods purchased are offered at rational prices until the installments are paid off. Second, how far do people understand the advantages and disadvantages of buying electronic equipment by using credit card installments or through credit installments in cash.
To answer the first question, the answer is very relative, depending on your priorities and how your financial capabilities are. Many people say that buying on credit is detrimental. Because there are administrative costs and so forth. For those of you who have a credit card, there’s no harm in listening to the following reviews.
Pay Attention to These Important Points When Using a Credit Card
Credit card holders now benefit from providing credit facilities provided by a number of e-commerce sites . There are offers of 0% credit installments to the provision of cachbacks / discounts. In addition to e-commerce , many offline stores also offer the same offer.
Even so, you should not carelessly buy electronic products without knowing the store’s origins clearly. Because not necessarily what they are promoting is true. For that, the following important points you must know.
1. What is the Credit Card Limit?
Do not be too greedy in buying consumer goods, such as electronic goods, without regard to credit card limits owned. Remember, the credit card issuing bank will refuse the use of the card after learning that your card is over limit.
2. How is the Limit Cutting Mechanism Used?
The matter of cutting limits, banks usually apply a discount at the same time according to the price of the product you buy. Or you can also add a limit in accordance with installment payments. For example, your credit card limit amount is $10 million. Then you buy goods at a price of $4 million. The bank will immediately lock in the amount spent and leave a limit of the difference.
In addition, there are also banks that cut limits, but also add to the limit at the same time depending on the amount of installments paid.
3. What is the Installment Mechanism?
To ensure that all bills (normal bills + credit installments) can be paid, you must know how the nominal installments are paid. Is it included in the normal bill or is it included in the minimum payment?
Usually the minimum credit card payment is 10% of the normal bill. Of course you already know how to risk paying credit card bills with minimum payment. If you do not know the risks, let alone add installments to the purchase of an item, you should consider carefully. One can have a debt for life.
4. Choose the installment period correctly
Usually credit card issuers provide flexibility for customers to take the installment period. Starting from 3-12 months. In order not to lose, choose the installment period that best suits your financial condition.
Pay Attention to These Important Points When Paying in Cash
Unlike paying installments via credit card, installment payments in cash through multi-finance companies tend to be more complicated. There are requirements that must be completed, such as KTP, Family Card, and so forth.
If you want to apply for credit with cash payments, here are some important points that must be understood.
- Pay attention to the quality of goods sold by the shop you visit. Prioritize choosing who gives an official guarantee.
- Read credit agreements as thoroughly as possible.
- Calculate all credit costs.
Maybe for those of you who have a good financial history and have never had a problem with any financial institution, the above points can easily be met. However, there are also cases where a person is refused a credit application because of his bad credit history. If you encounter a problem like this, you should consider the following points.
- Make sure your name is not listed in the blacklist at any multi-finance company. If you still have arrears, pay off immediately.
- Remember, companies must do a survey first. So, when applying for credit, tell the family about your plans. Usually, the bank will require you to fill out a form that must include information from a relative or family member for confirmation.
- Include data as complete as possible.
- Do not use the names of other family members when applying for credit.
- Meet the application requirements, such as a minimum down payment and other completeness so that the credit application can be approved.
Pay close attention so it will be easy to do
By understanding the credit system and the completeness needed above, you will more easily get a credit facility to meet the needs. Make sure you buy the product because it really needs and not just meets lifestyle demands.