Image via WikipediaI am among the majority of Philippines residents who own at least 1 credit card. I have 2 cards, Citibank and American Express. Although I have 2, I always only carry my Citibank card. Not that I have the uncontrollable urge to keep on swiping credit card, but because I only want to keep my wallet relatively thin.
So are credit cards good for us or brings the worse in us?
I like swiping credit cards because of the following:
- Convenience
- Availment of rewards and/or rebates
- Can buy big items without the need to bring lots of cash
- Give 1-billing cycle term (mostly, 30-days term)
- Gives us credit line
- Ability to auto-charge utility bills
- Incorrect charges can be disputed
If, however, used indiscriminately, disadvantages of credit cards are
- Big late payment fees
- Let the card holder thinks he has excess cash
- Annual fees
Personally, I am happy that credit cards are available. Here are some of the steps I follow religiously:
- Only consider swiping the card when I have the funds available to immediately pay when the bill arrives.
- Pay the entire amount due of the statement, not the minimum amount.
- Lastly, I always pay on time. In my case, I pay my credit card bill via a leading bank’s internet paying facility.
How about you? What are your experiences with credit cards?
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