Tuesday, May 07, 2024
Premier Bank PLC is a second-generation private commercial bank in Bangladesh that saw the number of users of its credit card increase by 35,000 in the last three years.
Talking to The Business Post recently, the bank’s Managing Director and CEO M Reazul Karim touched on several issues related to such cards and shared their views on how people can become sustainable credit card users.
He said that their credit card services are positively impacting people's lives by providing them with financial flexibility and enabling them to make purchases and manage expenses conveniently.
“Our credit cards empower individuals to pursue their goals and aspirations by offering access to funds when needed, whether it's for everyday expenses, emergencies or larger purchases,” he added.
The credit card of Premier Bank has some benefits, such as discount programmes, EMI partnerships, cashback incentives, and other perks that enhance customers' lifestyles by providing value and savings on their purchases, said Reazul.
He also said, “By promoting responsible credit card usage and providing transparent terms and conditions, we help customers build their credit history and financial literacy, contributing to their long-term financial well-being.”
Highlighting various tips for using credit cards, the banker suggested that, users should set a monthly budget and stick to it. He/she should track expenses regularly to ensure they are not overspending. He also stressed reviewing monthly statements carefully to check for any unauthorised charges or errors.
A user should choose a card that aligns with their spending habits and financial goals, and aim to keep the credit utilisation ratio (the amount of credit you're using compared to your total credit limit) at an acceptable level, Reazul said.
He also recommended using credit cards for necessary expenses and emergencies, and not as a source of additional income. “Avoid carrying a balance whenever possible to prevent debt from accumulating. One should take advantage of rewards and benefits offered by credit cards, but it is wise not to let them tempt the customer into overspending.”
By following these guidelines, users can effectively manage their credit cards and ensure that they contribute positively to their financial well-being, said the top banker.
He also mentioned, “To be a wise and sustainable credit card user, it's essential to prioritise financial responsibility and mindful spending habits. Start by understanding fees and charges, interest rates and reward programmes of credit cards. Then create a budget that aligns with your income and expenses, and stick to it diligently to avoid overspending.”
“Customers should pay their credit card bills in full and on time every month to avoid accruing interest charges and late fees. They may consider setting up auto-payments in the Card System to ensure they never miss a due date,” he stressed.
Furthermore, customers should use credit cards as a tool for convenience and financial flexibility, not as a means of financing a lifestyle beyond their budgets, Reazul said.
He said, “Premier Bank is here to support the customers and provide assistance or alternative arrangements to help manage their credit cards responsibly and sustainably long-term.”
He added, “Currently, we have approximately 80,000 credit card users in our bank and they are very good assets for the bank. In the last three years, approximately 35,000 customers have been added to our bank’s list of credit card users.
“We will diversify our card products and services in the upcoming days.”
