Credit Card Is Not Really Bad

I don't know why others say having credit card is bad and unnecessary. I think they just misunderstood the value of it, that's why they concluded that it's really bad. But for me it depends on how you use it. Some of those who are afraid to have it are blinded by people who use credit card in getting things they want in an instant without cash on hand. That's why those people got into huge debt.

Anyway, I will share with you what would you do if ever you get one. Here are some of the advantages of having credit card:

~ If credit card company offers you an installment and only charges you low fees (0.99 or 0.88%), then grab that opportunity. Because in normal transaction, they will charge you 3.5%. That is pretty high if you compare it with fee on installment.

~ The loan money I got from my credit card is invested to my mutual fund. My plan is the commission I will get from my investment will be used to pay the loan money I borrowed from credit card. I also build my investment vehicles at age of 23 so when I get old, I can depend on them aside from the pension of SSS.

~ If I want to, I can get gadgets that I wanted at installment payment with 0 interests but I don't want to, because it's not needed and you just feed yourself with luxury.

~ And last but not the least is you can use it for emergency purposes. If ever you have no money on hand and you badly need cash right now, you can rely on it but use it minimal as much as possible.

Anyway, I think other people assume that debt is bad. Actually, there are two types of debt and these are good debt and bad debt. For the things I do above, I'm using credit card to improve the status of my life and that is called good debt. You use other people's money (if you don't have any) to improve your life but make sure that you'll return to them what you borrowed. The good thing is you pay them with the money you got from the business you invested the loan money.

The bad debt is you borrow money from someone but you use it for your personal happiness, luxury and others. In that case, you haven't really used the money wisely to improve the life you currently have. And that is where the bad comes in. So don't say that credit card is totally bad, it really depends on how you use it.

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