Credit Card_Useful? or Scary?

A credit card is a payment card issued to users as a system of payment. It allows the cardholder to pay for goods and services based on the holder's promise to pay for them.

At first, I was hesitant to accept the offer of an agent who called me to apply for credit card. I have heard a lot of negative comments about having or owning a credit card. Most of them said, that once you have it you will be buried with tons of debts.  So, even though I am interested but I declined the offer because of the fear of the possibilities that the same odd situation might happen to me. I did not stop to ask anyone I know, especially those who are credit card subscribers about the advantages and disadvantages of possessing a credit card. Until I learned that having it is not really that scary if you will just use it wisely and responsively. It can help you and will do no harm if you are just a good payer. After I fully understand what credit card is, I re-apply and fortunately, it was approved.

For me, having a credit card is very useful.  I can use it in purchasing goods when I run out of money in my pocket and I can purchase ticket/s on emergencies.  I enjoy using it but I always remind myself to BE RESPONSIBLE! It doesn’t mean if you have it, you can just use it without thinking of the price to pay afterwards.  If you use it make sure that you can afford to pay for it on its due date to avoid interests and penalties.  Don’t just SWIPE and SWIPE and SWIPE if you know you are not capable of paying the amount because you will face the consequences of your action later on. That is the reason why some irresponsible credit card holders were buried with tons of debts and worst, being charged with cases. Spending too much than the actual income or savings can put you in an awkward situation.

Ways to avoid bigger bills:

1. Don’t be late in paying to avoid late payment charge. I pay my bill responsibly, usually 4 days before the due date with the TOTAL AMOUNT DUE coz you will be added a finance charge the next bill if you will just pay only the MINIMUM AMOUNT.  So, it’s better to pay the full obligation for the particular month.

2. Use only your credit card/s if needed.

3. Using the credit card is tempting especially if you’re in the stores, malls, appliance centers, so it’s better to leave your credit card at home safely. Put it in secret areas where no one knows beside you.

4. Schedule the date when is the right time to purchase or use the credit card.  Know your cut-off dates (refer to your Statement of Account).

     Example:  January 16 to February 15 due date is March 6
                       February 16 to March 15 due date is April 6

     Knowing this, you can have ample time to look for money to pay for your bill. Don’t swipe and swipe even if you’re overloaded on the particular month. Be responsible to avoid hassles.