Money Talks
Loading ...We are set to spend new year at the chilly mountains of Baguio, northern Philippines. My friend took care of the last minute reservation and was able to waive the 50% DP. I could have made the payment remotely using a plastic card.
Credit cards, this piece of plastic can either make your life simple or horrible.
The hassles and risks of carrying money and the advent of e-commerce has made cashless transactions almost a necessity. Cards has made shopping, dining and commerce in general more convenient.
However, one must observe these simple suggestions to make the use of cards value adding:
- Choose the card that gives you the best deal, i.e. 0% interest or waived membership fee.
- Pay your outstanding balance in full and on time.
- Be careful of fraudulent transactions.
A person who live above his means would likely depend on the available credit facility, and will end up just paying the minimum due. This will make credit card companies richer every month. But if the person went thru an economic disaster resulting to credit default or non payment, that could well be the beginning of a horrible experience from creditors, specially in countries without laws to protect consumers.
What’s my take on the issue?
Use the plastic like cash and enjoy the convenience cards can bring. But live below your means and pay your bills in full and on time.
This way, you’ll be in the best position to avail of waived memberships and 0% interests on some services. Your credit rating will also improved, giving you increased credit limit year after year.
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