Is Credit Card Beneficial or Bad to Your Finances?

Credit card is a typical bank product that enables the cardholder to purchase any items instead of using cash. It is a kind of payment approved by nearly all department stores and business enterprises. With credit card, you can also buy anything in the Internet from physical goods to digital products.

If you are short of money or you need it but you don't want to borrow from your colleagues or family members, you can also make a cash advance from your credit card with particular interest depending on the amount of cash you get off.

In my view, I prefer now to use credit card than cash when purchasing in supermarkets or purchasing items online. When I was in the Philippines, I don't get a credit card and its my decision 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 means of paying everything you like to buy.

So is having a credit card really harmful for your financial management? I don't think so. My assumption was altered now since I worked abroad. I saw that there are many advantages and privileges of having at least one credit card.

Credit card and debt consistently go together. It is the reason some people believe credit card is not for them. Once you use your credit card for buying anything, you are creating a debt. But, as far as you can pay your credit card bill on time, you will not be weighed down about your debt because you are in management 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 beneficial or harmful , depends on the person having that card. Just like money and other financial products, they are not wrong as it is, it becomes only harmful when the person use it in wrong purposes and ways.

It is the explanation why cardholders should be disciplined and self-controlled when utilizing credit cards. I think if you are an rush buyer, you should abstain having a credit card till you alter your habit and shift your reasoning about buying things. Also be cautious in using credit cards because it may lead to too great quantity of debt.

There are several good perks of having a credit card that I discussed above. Afar from that, with credit card you don't need to bring plenty of cash in your purse since you may use your credit card for payment. The nice thing also about it is you will pay the bill later for one month.

Further, if you became a victim of scams and you use your credit card for payment, you may obtain your money back once the credit card company verified you have been cheated. The only suggestion I want to give up is to pay the bill in full so you won't acquire high interest in the next billing.

I believe credit card is good when you use it for your own advantages and comforts. In fact, it is really intended to be helpful to the cardholders. The handling of credit card must be associated with discipline and self-control.

About the Author

Gilbert Tenorio is a personal investment blogger who likes writing on financial literacy, saving, investing and banking such as on how to apply for a Credit Cards Philippines. If you like this post and want to know more posts on banking, investments and make money online, you should go to Financial Management blog.