Three Reasons Why Credit Cards Are Great

[Mika]

A lot of people think that using a credit card is not good for your personal finance because credit cards will increase your spending and unnecessary expenses. However, credit cards are awesome products, and here are 3 good reasons for using credit cards to manage your personal finance.

If you use a credit card and if you are paying the full bill amount timely, your credit score will improve. This will make you eligible for a loan.

You get a free interest period. When you make a purchase through a credit you get a free 30-45 days payment window.

You get reward points for using credit cards. You can convert those reward points to gift vouchers, hotel points, airline points, etc.

Generally speaking, if you are using credit cards responsibly, you can manage your personal finance smartly. Using credit cards responsibly means using credit cards just like you use cash to spend on items that you actually need and spend only on essentials.

 

[cmoneyspinner]

Credit cards are fabulous! IF ... IF you are a person who has discipline. A person without discipline with create a bunch of debt using credit cards and likely have to declare bankruptcy. But if you use your credit card wisely, it's like an interest-free loan. I had one friend who put all of his bills on one credit card ... utilities, grocery, car payment, etc. Then at the end of each month he sent in one payment to the credit card company. He never made late payments. He was never was charged fees on the remaining balance, because he never carried over a balance. Now that's discipline! Not to mention it greatly improved his credit score.