I knew few people that are scared of credit card. Their main reason is that credit cards will bury them into debt. I’m sad for them, really. I have a friend who have 4 credit cards - all max out! You see, the problem is their mindset. They look at credit cards as having an unlimited cash on it. And so they become impulsive buyers. When the bill statement arrives, boom! They cannot pay the entire bill. Finance charge hits! Eventually drowning them into debt. They missed out to be accountable and responsible of their action. I’m sharing my personal way on handling credit card. First, don’t buy if you don’t have the money to pay for it. Second, pay your entire bill and do it on time to avoid finance and late charges. If you can make this into a habit, then you’ll enjoy the perks of having a credit card.
Convenience – You can purchase online without having to go to a physical store. You can book an airline ticket without calling for customer service.
Security - You will not carry cash every time especially big amounts, when travelling. Also, if you suspect a fraudulent transaction in your card, just call your credit card’s customer service and have that charge disputed.
Avail great perks – Credit cards normally have promo offers in shopping, dining, travel and 0% installment. Better choose the card that fits your lifestyle. For me, I try to maximize the promos. I normally dine in a restaurant that have promo offers using my card. 10% ~ 20 % are significant amount compared to paying the full price. Same is true to shopping and travel. Aside from percentage off in your airfare tickets, you can also earn mileage points which eventually rewards you for a free airfare in your next travel.
Avail the reward point – Every time you use your credit card, you are earning points. With that, you can avail rebates, gift cards, and others. Study your credit card rewards.
You don’t have to be afraid of credit card. It has a lot to offer if you can maximize it. I disagree in the financial advisers who advised not to ever get a credit card. You just have to know how it works. It makes life easier.