Is Credit Card Good or Harmful to Your Finances?
Credit card is a common bank merchandise that enables the cardholder to purchase any things in place of of using cash. It is a type of payment approved by most department stores and business enterprises. With credit card, you may also purchase everything in the Internet from material goods to digital products.
If you are lacking cash or you need it but you don’t want to borrow from your colleagues or family members, you may also acquire a cash advance from your credit card with particular interest relying on the amount of money you withdraw.
In my view, I prefer now to use credit card than cash when purchasing in supermarkets or purchasing items online. While I was in the Philippines, I don’t get a credit card and its my decision not to request for one because of my understanding about it. I thought having credit card is bad for finances and using only cash is the good means of paying anything you like to buy.
So is having a credit card really harmful for your financial management? I don’t think so. My assumption was altered now since I worked abroad. I saw that there are numerous benefits and privileges of having at least one credit card.
Credit card and debt consistently go together. It is the reason some people believe credit card is bad for them. Once you use your credit card for buying anything, you are creating a debt. But, as far as you can pay your credit card bill on time, you will not be weighed down about your debt because you are in control of your credit card.
Here in South Korea where I am working for almost 4 years, I realized the importance of owning a credit card. Whether credit card is beneficial or bad , depends on the person holding that card. Just like money and other financial products, they are not wrong as it is, it becomes only harmful when the person use it in wrong purposes and ways.
It is the explanation why cardholders should be moderated and self-controlled when utilizing credit cards. I think if you are an rush buyer, you must abstain having a credit card till you alter your habit and shift your reasoning about buying things. Also be careful in using credit cards because it may lead to too much debt.
There are several good benefits of having a credit card that I discussed above. Aside from that, with credit card you don’t need to bring plenty of cash in your purse since you may use your credit card for payment. The nice thing also about it is you will pay the bill later for one month.
Further, if you became a victim of fraud and you use your credit card for payment, you may obtain your money back once the credit card company confirmed you have been cheated. The only advice I want to give up is to pay the bill in full so you won’t acquire high interest in the next billing.
I believe credit card is good when you avail it for your own benefits and comforts. In fact, it is really designed to be helpful to the cardholders. The handling of credit card must be coupled with discipline and self-control.
Gily Tenorio is a personal investment blogger who loves writing on financial literacy, saving, investing and banking such as on how to apply for a Credit Cards Philippines. If you like this post and want to know quality articles on banking, investments and make money online, you should go to Financial Management blog.
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