Credit cards can be of great help but it can be a liability if the person mismanages it. Credit cards are widely used by many Singaporeans here for different transactions. It is rampant because all establishments accept it. The big question now is, are you ready for a credit card? If the answer is still no, you have to stall it. If you are ready for the responsibilities that it entails, you have to seriously learn how to manage it.
Credit card can give you lots of benefits to the point that you can save money. Remember that your credit history can help you with loan applications. Here are the other advantages of credit card:
Flexible payment terms
Only few banks give you the liberty to pick particular dates so you won’t have a hard time paying your balance. Look for banks that give you this liberty. Do not consider a bank that will dictate when to pay and how often you will pay. There are some banks that will give you the freedom to pay once, twice or weekly depending on your terms. The trick here is to schedule payments during your payday. This is an excellent action so you won’t have any excuses not to pay the balance in full. This can help you save money at the end of the day because you can avoid interests for paying late.
To entice more users, banks have their unique reward points. For example, there is a bank that gives you reward point for every $20 spent. As you go along, you will accumulate points and you can redeem it through their partners. There is even a chance that you can use your reward points to pay for your airline ticket. However, be careful to overspend just to earn points.
You love to celebrate milestones – like graduation of your kid or your promotion to your anniversary. There is nothing wrong with that. You decide to eat and drink outside. The good news is that there are partner establishments that offer discounts and promos for credit card users. Aside from restaurant freebies, there are certain shops that can give you discount. You have to take advantage of these freebies.
No annual fees
Annual fees vary depending on the bank. If you haven’t considered this and pursued anyway, you will have to pay annual fee. The thing here is if you know where to look and what to consider, you can waive your annual fees – for life. By waiving the annual fees, you can save hundreds of dollars every year. There are banks that install application booths and waive the annual fees, if you come across these booths, it is time that you take advantage of this.
Not all credit card users know about cash backs. Cash back refers to refunds or rebates you get after making a purchase. The percentage depends on the category – gas, groceries and utilities among others. The rebates can range from two to ten percent. This is one of the most appealing features of credit card. If you use credit cards, you will get rebates compared to nothing when using cash. To maximize cash backs, use credit card for set monthly expenses like water, electricity and cable, internet, etc.
Now that you know the advantages of credit card, the next thing that you need to do is to look for the card with the lowest interest rate. There are many bank institutions here offering competitive rates but to be sure, you need expert advice. Another thing to remember here is to make sure that you don’t pay interest for late payments. If late payment is unavoidable, it is useful if you applied for a card with the lowest interest rate.
It won’t hurt you to research first before indulging. The advantages mentioned above are useful for first-time credit card users. By learning the ins and outs of credit cards, you are one step ahead of managing it. Do not wait for things to get worse before making an effort to manage your credit card. Having a plastic is a great responsibility and it takes a whole lot of self-control but if managed properly, it can be your greatest asset.