Is Credit Card Good or Bad to Your Finances?

by Gily Tenorio on December 7, 2010

in Credit Card

Credit card is a common bank product that allows the cardholder to purchase any items instead of using cash. It is one type of payment accepted by most department stores and business establishments. With credit card, you can also buy anything in the Internet from physical goods to digital products.

If you are short of cash or you need cash but you don’t want to borrow from your friends or family members, you can also make a cash advance from your credit card with certain interest depending on the amount of  money you withdraw.

For my case, I prefer now to use credit card than cash when buying in supermarkets or purchasing items online. When I was in the Philippines, I don’t have a credit card and its my choice not to apply for one because of my notion about it. I thought having credit card is bad for finances and using only cash is the good way of paying anything you like to buy.

So is having a credit card really bad for your financial management? I don’t think so. My belief was changed now since I worked abroad. I saw that there are many advantages and benefits of having at least one credit card.

Credit card and debt always go together. It is the reason some people think credit card is bad for them. Once you use your credit card for buying anything, you are creating a debt. However, as long as you can pay your credit card bill on time, you will not be burdened about your debt because you are in control of your credit card.

Here in South Korea where I am working for almost 4 years, I realized the importance of having a credit card. Whether credit card is good or bad , depends on the person holding that card. Just like money and other financial products, they are not bad as it is, it becomes only bad when the person use it in wrong motives and ways.

It is the reason cardholders should be disciplined and self-controlled when using credit cards. I think if you are an impulse buyer, you should avoid having a credit card until you change your habit and shift your  thinking about buying things. Also be cautious in using credit cards because it may lead to too much debt.

There are some great benefits of having a credit card that I mentioned above. Aside from that,  with credit card you don’t need to bring many cash in your wallet since you can use your credit card for payment. The good thing also about it is you will pay the bill after one month.

In addition, if you became a victim of fraud  and you use your credit card for payment, you can get your money back once the credit card company verified you have been victimized. The only suggestion I want to leave is to pay the bill in full so you won’t incur high interest in the next billing.

I believe credit card is good when you use it for your own advantages and benefits. Actually, it is really intended to be beneficial to the cardholders. The use of credit card should be coupled with discipline and self-control.

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