What is the benefits of using credit card?
Saturday, November 30, 2013
Is it more benefits or credit card will put you into trouble? If you say you can manage all your expenses and debts, no harm to use it and I think it would be better than paying by cash money! There are a lot of discussions on the pro and con using credit card.
Advantages
1) No need to bring cash money
2) Minimize risks - safety reasons
3) Buying through easy payment installments
4) Treatpoints can be redeemed
5) Cash back
6) Trace all expenses as credit card produce monthly statement
7) Insurance coverage with credit card purchasing
8) Retail protection
9) Some more discounts for certain things at shopping complex or outlets
10) Grace period meaning that there is time given to pay debt normally 20 days after purchasing - borrow for free
11) Emergency use and etc
And I think it will be saved money a lot!
Disadvantages
1) Debt traps
2) Hidden charges
3) High cost fee
4) GST tax for RM50/card
5) Overuse
6) Spending temptations
7) Credit card fraud
8) Interest rate
9) Annual fee
Bad management on the credit card will introduced bad credit. Meaning you have loan with a bank and accumulate the interest with high cost. 18% per year. There is no investment on earth something special rate such as credit card debts. I am sure bank will like you very much if you can pay on the minimum pay or 5% from total debts. This will end up you into big trouble and has potential on bankruptcy.
If you use a credit card responsibly, I believed it's much better paying off with credit card. You decide!
