A credit card is a payment tool issued by banks or financial institutions to make transactions more convenient. But, just like other financial services, there are costs involved for users.

Typically, there are four types of fees that credit card users need to pay: billing issuance fees, stamp duty fees, interest fees, and annual fees. But don’t worry—there are ways to use a credit card for free! Here are some tips:

1. Pay your bill in full and on time

Paying your bill in full before the due date comes with many benefits. First, it helps maintain a good credit score, as it shows you are responsible with debt payments. Second, it increases the potential for a higher credit limit. If you consistently pay your bills on time, banks will trust you more and may offer you a higher limit. Third, using your credit card regularly and paying it off in full can also help you qualify for waived annual fees and interest-free benefits.

Annual fees for credit cards can be quite costly, ranging from IDR 200,000 to IDR 1,000,000 per year, depending on the type of card. Many banks offer free annual fees for the first one or two years, but Honest does it differently.

Honest Card has no annual fees—ever. Instead of separate charges like annual fees and other credit card costs, Honest simplifies everything into a single monthly admin fee. The amount is based on how much of your credit limit you use. So, if you don’t make any purchases with Honest in a given month, you don’t have to pay any admin fees.

Even better, you can get a refund on this monthly fee if you pay your bill in full before the due date. This Admin Fee Refund Program has no time limit, meaning you can use your Honest Card for free at any time, as long as you pay your bill in full and on time.

For example, let’s say you spend IDR 4,000,000 in January using the Honest App. Your admin fee would be 3.99% of that, or IDR 159,600. If you pay the full amount (both the principal and the admin fee), then three days after the due date, the IDR 159,600 will be refunded to your account—ready to be used for your next purchase.

2. Use your credit card frequently for purchases

You can also get a waived annual fee even if you’ve been using your credit card for more than one or two years. The key is to use your card frequently for transactions and pay off your bill consistently.

Why does this work? Every time you use your credit card, the bank earns revenue from transaction fees. If you make enough purchases, the total revenue the bank gains can be equivalent to your annual fee.

However, this benefit isn’t automatically granted. If you want to take advantage of it, you’ll need to contact your bank—either online or by visiting a branch—to request a fee waiver.

3. Avoid spending beyond your credit limit

In addition to the four common credit card fees, many banks also impose over-limit fees. These fees are charged when you exceed your assigned credit limit.

For example, if your credit card limit is IDR 5,000,000, but you make a purchase worth IDR 6,000,000, you’ll be charged an over-limit fee based on the excess amount.

To avoid this, always keep track of your spending and ensure you stay within your credit limit. If you notice any suspicious transactions, report them immediately and request a card block from your bank.

4. Avoid making minimum payments

One of the advantages of credit cards is that you can either convert your bill into installments or make a minimum payment first. Typically, the minimum payment is 5% to 10% of the total bill.

For example, if you spend IDR 4,000,000, the minimum amount you need to pay could be around IDR 200,000 to IDR 400,000. The remaining balance can be carried over to the following months.

While this can help ease your financial burden in the short term, keep in mind that any unpaid balance will be subject to interest fees. If you want to avoid paying interest on your credit card, always pay off your bill in full before the due date.

In short, you can use a credit card for free if you treat it purely as a payment tool—meaning you only use it when necessary and always pay your bill in full before the due date.

Credit cards offer a lot of convenience, but the more you take advantage of these benefits, the higher the potential costs. Use your credit card wisely to maintain a healthy financial future!