I’m sure you just heard from others having a credit card would only make you poor. Why? Because according to them you will be tempted to use it to have the things you desire even though you don’t have cash at that moment. Things you love to buy will be given to you instantly as long as you make use of other people’s money (the credit card company). Others recommend you to have credit card due to unexpected situations you may face in the future (emergency or necessities).

 

Anyway, I build this article to give answers to people who still consider having a credit card. Spend your time and attention here and learn the importance of what so-called money-spending thing.

 

Enjoy and have fun!

 

The image above came from wpclipart.

Actually, having credit card depends on how you use it. If you use it wisely, it is good to have but use it poorly then you’ll be drown alive. What I mean is don’t use it just to have or acquire your wants, use it only to provide your needs. It’s as simple as that. Besides, I read and heard from one of the well-known businessmen and Filipino authors, Francisco Colayco, if you really need it for your growth, use other people’s resources to improve the current state of your life. Meaning if you don’t have money right now, you can take advantage of their money as long as you will pay them and based on both party’s agreement. And that loan should be served as your capital in your business to earn enough or more than what you will pay for.

 

So again, I ask you, “Is credit card a good to have or bad?”

1. Make sure you have an expected money twice or once a month which can be used as payment to your credit card loan/debt.

 

2. Purchase only on things that are really important.

 

3. If you don’t want your loan to have a monthly interest, be sure you paid all your credit balance and don’t use your credit card in one whole month.

 

4. Since you use other people’s money in times you badly need it, credit card companies charge you a fee every year.

 

5. Having credit card to purchase appliances has no interest at all (you will be charged by the real price of that appliances) but I’m not advising you to use on this kind of things.

I have known lately two terms in a credit card vocabulary. Cash Advance and the other one is Cash Installment.

 

Cash Advance

 

Cash Advance is the withdrawing of money from your credit card. In other words, turning your available credit balance into a real money. Instead of swiping your credit card to purchase things you want, you prefer to get cash and use it to your transactions. The only drawback I see on using this credit card feature is of course there is a fixed interest rate like 3.5% monthly (or it depends on the credit card you have). But it will be useful especially if the one you transact with does not accept credit but only cash.

 

 

 

Cash Installment is better to me than Cash Advance because the method of payment is already fixed and computed monthly and based according to the agreement between you and your credit card company. They are almost the same because you can have a cash on hand but low interest rate (I think 1% interest). You just have to comply with the fixed amount you must pay monthly and you are expected to complete the months of payment.

 

 

That’s all! I hope everything is clear and you gained another source of knowledge by reading this lens. =)