The credit card has changed for the past few years. I remember, in my younger years, the credit card is something exclusive for those rich and famous.
To apply for a credit card, you must have a minimum annual income of RM18000, which meant that a salary of at least RM1500 per month. Not everyone can afford to have credit cards.
Nowadays, almost all working adults have credit cards. They not only own one but a string of credit cards.
If you use it wisely, a credit card can be a great financial friend.
Credit Card – Your friend or enemy
Below are some benefits of credit cards:
1. Can represent your cash when you don’t have cash in hand
Especially for those who are on vacation and they don’t bring a lot of cash with them. Also for those who need a large sum of payment purchasing of electronic devices or settle the medical bill.
2. For online purchasing
Nowadays, online shopping is a common thing. And you will need either a credit card, debit card or online banking to complete your order online.
3. Auto debit services
Next, you can perform auto-debit through your credit cards and save your worries on your unsettled bills.
But, credit cards can also become your financial enemy if you misused them. A lot of people fall into credit cards debts and had to declare bankruptcy.
It’s so easy to use them, but so hard to pay later.
So, my advice. Be smart, do not allow yourself to have an unsettled credit card balance. Only use the credit cards when you have the cash to settle before the due date.
Allow the cards to be your friend instead of your enemy!