Having a Credit Card
June 24, 2008
A friend asked me one day if it’s worth it to get a credit card. A colleague approached her for a credit card application that will be approved in just a few days. My friend has always been thrifty so she is not sure if she will get one for herself.
She very well knew my experience with credit cards so I told her that we are two different persons. My experience will not necessarily be the same as hers especially since she’ll be the one whose going to use it.
I just gave her some tips in using her future credit card. One is that it is best if the credit card is used sparingly, only if she needs to buy something and she has no cash left. Even so, make sure that the payment for the balance will be paid in full on or before the due date. That means, the payment for the item must be included in the budget so that definitely the balance will be paid on time. This will help in avoiding to pay interest charges when there is a balance left or if only the minimum amount was paid.
I also advised her not to bring her credit card when she has no cash because she will be tempted to swipe it thinking that it will be paid in the next weeks anyway.
On the other hand, I also suggested that a credit card is okay to use for big-ticket items which usually have 0% interest for a period of time. If one has been planning to purchase appliances, gadgets, a credit card is convenient to use. One can save for the payment since it is done in installment and the good thing is it has no interest charges for a period of time.
In the end, my friend decided to give it a try. She’s excited to try it for herself. I just reminded her not to let her credit card rule over her.
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