Many people think that credit cards are only useful for grabbing promos, but in reality, they offer so much more! Credit cards can actually make your life easier and more convenient in ways you might not have realized.

For example, they allow you to manage your spending better and make payments more easily. Plus, they come with advanced security features that make your transactions safer. So, besides being a shopping tool, credit cards have plenty of other perks worth considering. Let’s dive into seven credit card functions you might not know about!

1. Simplifying transactions

One of the main benefits of credit cards is that they make your life easier and more practical. You no longer have to carry a bulky wallet or search for cash. Just tap your card at the payment machine, and boom—the transaction is done in seconds. And if you use the Honest app, you can even pay with just your phone using NFC (tap-to-pay), similar to Apple Pay. This is perfect for those who are tech-savvy and love everything fast and efficient.

2. Helping manage finances

Aside from simplifying transactions, credit cards can also help you manage your finances more effectively, especially if you’re using Honest credit card. With Honest, you can easily track all your expenses in real time. Every transaction is instantly recorded and updated so that you can check your spending anytime.

For example, after buying coffee or lunch, the transaction will immediately pop up in the app, so you know exactly how much you’ve spent. This makes budgeting way easier because you can see where your money is going without waiting for a monthly statement or manually tracking things. With everything recorded automatically, managing your spending and finances becomes a breeze.

3. Flexible payment options

Some credit cards offer flexible payment options, allowing you to pay whenever and however much you want. For instance, if you’ve got extra cash, you can pay off your credit card bill in full without waiting for monthly installments like you would with online loans (pinjol). But if you’ve got other expenses, you can choose to pay a part of it or just the minimum payment.

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Here’s the cool part: the Honest app has an interest calculator feature, so you’ll know exactly how much interest you’ll pay next month before deciding how much to pay this month.

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If you pay in full and on time with Honest, your interest rate could be 0% with no extra fees. You also don't need to worry about fixed installments for 3, 6, or 12 months. You can choose how much to pay based on what’s convenient for you.

4. Boosting your credit score

If you know how to use credit cards wisely, they can actually help boost your credit score! Just make sure you consistently pay your bills on time. Being consistent with timely payments shows lenders that you’re responsible and trustworthy, which can positively impact your credit score.

Also, try to use only 30% of your credit limit. For example, if your limit is IDR 10,000,000, aim to spend no more than IDR 3,000,000. This shows that you’re not overly reliant on your card, which also helps improve your credit score.

Timely payments and smart usage are key to building a good credit score. And with a solid score, everything in your financial life becomes smoother – from easier loan approvals to lower interest rates and more perks.

5. Fraud protection

Credit cards can really protect you from fraud, especially with the latest technology. Take Honest Card, for example—it’s the first card in Indonesia without a physical card number. Instead, the card number and CVC code can only be accessed through the app on your phone.

This means the card number is not printed on the physical card, eliminating the risk of someone stealing it from the card itself. All sensitive information is securely stored, making online transactions much safer and reducing the risk of fraud. So, with this tech, you can shop more confidently without worrying about misuse of your card information.

6. Easier international transactions

Credit cards make traveling so much easier, especially when you’re abroad. Imagine effortlessly paying for your hotel, plane tickets, or restaurant meals. Just swipe or tap your card, and you’re good to go—no need to worry about currency exchange or carrying large amounts of cash.

And if you’ve got an Honest Card, you can use it for contactless payments worldwide without international transaction fees. You can even use Honest Card for the MRT in Singapore. Plus, Honest only has one simple fee based on your outstanding balance, meaning no surprise charges when you make international transactions.

7. No hidden fees

If you choose wisely, some credit cards have low admin fees, so you don’t spend more than necessary. For example, Honest Card has a low admin fee based on the remaining principal amount. There are no extra fees like late payment penalties or international transaction fees.

Unlike debit cards, where hidden fees can pop up, especially with frequent international transactions, credit cards with low admin fees give you more control over your spending. You’ll always know exactly how much you need to pay, so you can focus on what matters most without worrying about surprise charges.

So, those are the seven functions of credit cards—not just about promos but also about managing your finances without breaking the bank. We hope this information helps you make smarter financial decisions!