When people complain about excessive purchasing using credit card or outrageous interest rate charge on credit card, people forget the fact that you have the control of not letting those things happen. As we always saying here, do your homework before doing anything.
There are couple of benefit by using credit card
- it helps building your credit, and hence lower your borrowing cost;
- you only pay your credit card once per month, which basically mean than bank loan you money for free until you pay it once per month (assuming you pay in full);
- you have protection against your purchase. For example, if the things you purchase is not what it is advertised and if the seller refuses to take it back, you can complain to your credit card company and they will deduct it;
- and most of the card have reward project which is 1 - 3% of your purchase
As long as you can manage yourself
- do not make excessive purchase simply because you have credit card handy;
- always pay in full on time every month
you will find that credit card makes your life much easier.
