After graduating from the university level, usually fresh graduates (fresh graduates) and start feeling their first salary as employees will begin to be tempted to apply for credit cards. There are many reasons that support why usually fresh graduates are tempted to apply for credit cards, to find out anything, see more here:
Advantages & Disadvantages of Fresh Graduates who Have Credit Cards
Actually there are a number of advantages and disadvantages of credit cards for fresh graduates:
The advantage of having a credit card for fresh graduates
- It can be easier to apply for a new credit card with a larger limit in the future.
- Train self-responsibility to be more independent in managing finances.
Having a credit card means having a big role in yourself so you can control your finances better, and not be easily tempted by interesting items around it. If a fresh graduate manages to train his responsibilities in using a credit card, it is not impossible that he has the potential to become a person who can have a better financial flow than his peers.
- It’s safer because you don’t need to carry large amounts of cash
Besides these advantages, actually there are also various shortcomings when a fresh graduate starts using a credit card:
- Not able to control expenditure wisely, especially if you are accustomed to getting monthly pocket money from parents.
The use of uncontrolled credit cards by fresh graduates can risk the emergence of financial disruptions at a young age. If you are not accustomed to managing monthly money, indeed it seems that credit cards have not become a crucial thing that is owned by a student who has just graduated. Negligence in the use of cards, can have an impact on bad financial flows, and even make them become difficult again for parents.
- Usually new credit card users in the form of fresh graduates do not understand the essence of credit cards, which should only be used as a promo card, and not as a medium for conducting daily transactions. Not to mention, in Indonesia alone there are still many types of payments that require cash payments. So, indeed it is better for students who have just graduated, focusing on the use of cash / debit cards that can be controlled more.
Reasons for Fresh Graduate Tempted to Submit a Credit Card
Take advantage of promos
Fresh graduates who have just passed the student bench certainly understand the importance of gathering with friends when there is free time. Generally these activities include watching the latest movies in theaters or just having lunch / dinner together in a simple place, or in more expensive restaurants around the mall. In order to reduce costs, usually they tend to use promotions that are in effect. When going to watch a movie for example, in some places usually have a Buy 1 Get 2 tickets (Buy 1 Get 1 Free) for each ticket purchase with a credit card. Let’s just say the price of a movie ticket costs IDR 40,000 – they can save up to IDR 20,000 when watching with friends.
Similarly, when in a place to eat, at some fast food restaurants usually have a collaboration program with a credit card issuing bank. Usually they can use promotions like this to get discounts of up to 50% or even more. Based on these considerations, credit cards usually start to look attractive in the eyes of graduates, and credit cards begin to be considered to have an important role in getting additional discounts.
Not to be left behind, promos like this can also be obtained when they start hunting for plane tickets or trains when planning to take a vacation with friends. Usually by buying tickets using a credit card, they can get more discounts. Not to mention the airline ticket purchase and hotel booking transactions are now getting easier, because it can be done from a smartphone only.
Installing Luxury Goods
Another thing that makes fresh graduates tempted to have a credit card is because they want to repay luxury goods. With monthly income starting from work, young people usually start glancing at luxury items that they have not been able to buy while still in college. Therefore, the salary they get seems to be allocated for shopping. How to shop with no burden that is often done of course by starting installments. This is where the desire to start applying for credit cards usually starts to appear.
For male students who have just graduated, of course, they are already familiar with online games . Games that are usually played with peers are often the best means of entertainment. Usually in games like this, there are lots of tantalizing items, which can be bought in hopes of making the game technique even more powerful. Payment methods when buying these items usually use a credit card.
What is the solution to overcome it?
If indeed fresh graduates start to be interested in having a credit card, but are afraid they cannot control the use of the credit card properly, there are several solutions that can be done:
Install a Low Credit Card Limit
Some fresh graduates who want to apply for credit cards usually still rely on the help of parents, through additional credit card programs from parents. To overcome this, try to set a low credit card limit . With the limited expenditure allotment, it is expected that the fresh graduates really do use credit cards for profitable purposes. Not for shopping for luxury items without control, but rather using promotions, in order to cut more monthly expenses.
Enrich Yourself on How to Manage Finance Wisely
Begin to enrich yourself by managing finances well. Educate yourself about ways to increase income by looking for additional income, to be more financially prepared when you have a credit card. Not to forget, fresh graduates must also understand exactly what expenditures are of a secondary nature and not needed. By understanding things like this, a fresh graduate can be wiser in shopping and choosing what expenses do not need to be done, so that it does not become wasteful.