Wednesday 8th Feb 2012 02:06 PM
Welcome to Qotion.com!
Qotion.com is a website for you to browse and discuss financial products. Currently, we are undergoing further development, and hope to serve you when we relaunch the site with new features.
Fri, 04/11/2008 - 17:50
Credit card. Boon or bane? To some, it is synonymous with sky high interest rate, never-ending debts and bankruptcy.
“That’s the most evil thing on earth after Osama, (some even include George Bush)”…they denounced…
They wouldn’t want to touch it with a ten foot pole. Never mind having it in their itchy wallet.
But for others, credit card is an extremely useful and valuable financial tool.
They know how to utilize the concept of ‘buy now, pay later’ to the fullest, and employ credit wisely.
Without a doubt, there are many pitfalls associated with credit. Such as the lure of extravagance which can lead to irresponsible spending habits and ultimately possible financial ruins.
Want to know how to manage the use of credit card to one’s monetary advantage? And make the most out of smart leveraging?
Simply download the special Qotion Report to find out more...
=> http://qotion.sg/files/Transfor
Jag
to me, I find that credit cards are a useful tool. Utilise the 0% instalment plans. If you are able to make payments in full and not carry forward any balance, then you can also earn credit points which can be used to redeem for some freebies.
for me, i find that it warps my sense of how much i have spent, only to realise when the credit card bills arrives. hence i seldom use them except for oversea purchases or when going restaurants.
Guys,
Any feedback on the report? I will like to know.
Think we should come out with more financial educational reports? Or stop it and never get it published again because the information is disgustingly lousy?
Do share.
Thanks a million!
Jag
==================================
"The point is, ladies and gentleman, that greed - for lack of a better word - is good..."
Gordon Gecko, "Wall Street", 1987
my feedback is that this report on credit card is very useful for everyone, regardless of age or gender.
We see the rise in people approaching the credit card bureau (is that the correct name?), which means people are using or having the wrong mindset of credit card usuage. Therefore, with this circulation of this report, hopefully the number can get lesser and lesser.
My P.O.V is Credit cards are a evil, however a necessary evil.
Lets take a few examples, when you are planning to purchase furniture or expensive electronics, no credit cards how?, NETS max is up to $3,000..using multiple ATM cards...a hassle or Cash? very risky. Imagine carrying few thousand dollars of cash around ... the fear of being robbed might arise. Here comes the credit cards, its a plastic that saves the hassle or carrying multiple ATM cards or cash. Kindly understand its also not 100% safe as there are crimes involving Credits cards being swipe. Its more of the saving of hassle.
When overseas with no credit cards, do you intend to carry a large amount of cash walking around? Most of us wont, we will bring some out and keep the rest in the hotel under safe or under lock and key. What if you sees something you like and you dun have enough cash to buy? Walk back to hotel and take...thats definitly too troublesome. For me, i bring some cash and credit cards are backup for purchases that exceed my cash amount.
Benefits, credit card offers points that you can use to redeem for free electronics, dining, air miles or even hotel packages. You dun get these perks with using ATM cards or Cash. However you can get carried away with just swiping without seeing money being spend as its being paid on credit, thats why you need to have discipline if not you will faint when the bill comes at the end of the month. Its not the big amount thats scary, its the multiple small amounts that adds up thats scary.
Well all those stated above are of my own P.O.V. Every one has their own perspective. Just stating my point.
Cheers
----------------------------------------------------------------------------------------
Contest theory: More entries = More chances - Concept of Probability.
Time & Tide waits for no Man.
With credit cards, just don't forget the 2 cardinal rules...
1. Spend within your means
2. Pay on time.
Guaranteed that you will have no more credit woes. Play it smart to your advantage.
Jag
==================================
"The point is, ladies and gentleman, that greed - for lack of a better word - is good..."
Gordon Gecko, "Wall Street", 1987
2. Pay on time.
Jag
Always pay in full and do not rollover any balance.
Come visit the Den of the Lion Investor.
I'll agree with Deathsender wholeheartedly! Welding those credit cards make me feel more powerful, not in the arrogant sense of the word, but more of, I feel confident & safer esp. when overseas. Of coz the power ends there when you have stalls & markets which do not accept cards, but look where it got Richard Gere when he went a-shopping buying birdies in suburban India.
But yes, JagFoo has a point, when he says:
1. Spend within your means,
2. Pay on time.
No. 2 I can do, quite well in fact, +/- a few late days. I refuse to use GIRO for all my cards because the more troublesome it gets, the less I'll bother to swipe more cards, more banks, so sometimes most of my cards payment = S$0. And it makes me read all my statements carefully b4 I pay, feeling the pinch for each & every item. Since my other bills went GIRO years ago, I can't rem the LAST mobile bill I read before discarding!
Dear Goldribbons,
Good for you, indirectly taking steps in taking control of your expenses and tracking of them. Thats definitely one way of controlling your spending and avoid falling into the credit card trap.
That richard Gere advertisement was a classic stating Visa is all powerful...but i had friends mentioning...that girl only want 5 birds...buy so many for ????
Giro is a good way to save hassles but u dun tend to keep track of those expenses deducted via giro making you wonder sometimes where did all my money go... As for me...i'm more of a benefits / goodies / contests guy... i use my credit cards to pay the bills giving me extra 30 days to stretch...2) gives me lots of points which i can use to redeem stuff like air miles and even holiday packages (hehe enough for that now) 3) Chances to win great prizes in contests provided by the banks like cars ...holiday packages ... gadgets ... vouchers ...( sad to say havnt won any of those sort yet).
Theres always good and bad to credit cards...it all depends on how u use it.
----------------------------------------------------------------------------------------
Contest theory: More entries = More chances - Concept of Probability.
Time & Tide waits for no Man.
HAHahahahaha,
Well, as the advertisement goes,
"more birds...., more luck...!!!!"
Richard Gere just couldn't bear seeing the girl buy just one bird for her brother...
That richard Gere advertisement was a classic stating Visa is all powerful...but i had friends mentioning...that girl only want 5 birds...buy so many for ????
HAHAHA True ... but is he going to continue buying more and more birds :S
Well for entertainment sake, that was indeed funny ;)
----------------------------------------------------------------------------------------
Contest theory: More entries = More chances - Concept of Probability.
Time & Tide waits for no Man.
great read.
however, partly the banks themselves to blame as they are dishing out credit cards like pancakes...
)
i often get calls from the banks.... peddling their latest credit card or urging me to upgrade to platinum, offering free annual fee waivers and vouchers..
being Singaporean (ahem!), a lot of people will just apply and swipe like no tmr, so that they can also accumulate points to exchange for rewards (you need many many many points to redeem a measly $10 voucher...
plus the many perks and benefits like dining and shopping discounts, many would be swiping their cards more on some "unnecessary" stuff......
u know... don't waste lah.... got discount leh! so might as well go and eat....
or.... got 10% discount leh! so i can go get that $200 jacket from zara......
people are using the cards just because of the discount...
it's smart to find ways to save money... but usually end up spending more......
of cos, no harm to pamper yourself once in a while... but still got to spend wisely..
however, partly the banks themselves to blame as they are dishing out credit cards like pancakes...
)
i often get calls from the banks.... peddling their latest credit card or urging me to upgrade to platinum, offering free annual fee waivers and vouchers..
being Singaporean (ahem!), a lot of people will just apply and swipe like no tmr, so that they can also accumulate points to exchange for rewards (you need many many many points to redeem a measly $10 voucher...
plus the many perks and benefits like dining and shopping discounts, many would be swiping their cards more on some "unnecessary" stuff......
u know... don't waste lah.... got discount leh! so might as well go and eat....
or.... got 10% discount leh! so i can go get that $200 jacket from zara......
people are using the cards just because of the discount...
it's smart to find ways to save money... but usually end up spending more......
of cos, no harm to pamper yourself once in a while... but still got to spend wisely..
Thanks FireIce for your positive feedback. =)
Yea. Spend wisely. And within your means. Better still, spend in order to potentially earn more money - in other words - invest.
Jag
==================================
"The point is, ladies and gentleman, that greed - for lack of a better word - is good..."
Gordon Gecko, "Wall Street", 1987
Well, in life there are stuff you go to buy, food you got to eat <---- abit extra hor, bills you got to pay, using via GIRO, Cash, nets etc dun let you earn anything out of it. Basically is just $$ jumping out of your wallet into their hands. Why not make use of credit cards to earn some points to redeem some stuff in the mid of paying for all those.
The points might be little and hard to earn and takes time but you just got to make use of the cards offering 2X 4X etc to earn those points. Find those banks with reasonable redemption requirements.
Diners rewards programs honestly sucks, you earn 1 point for 1 dollar you spend with them, to redeem one $10 voucher you need to have like 7k or 8k points? SIAO...that means you got to swipe or spend $7,000 - $8,000 to get a tiny $10 voucher. OCBC is another sucky program with redemptions of rewards in the tens of thousands of points or even hundreds of thousands points. Bank of China have crazy requirement however attractive redemption items... like giving you a free macbook but you need to like spend $88,888 in 2 - 3 months :S ... how to spend? buy a two seater aeroplane? buy a boat? thats for the rich and those who are that rich u think they bother about a tini macbook?
(FYI, i have chalked up enough points to go for a BANYAN TREE RESORT ...hehe which bank i'm using, let you guys go find out as i know not much banks offer BANYAN TREE RESORT) but that tooks about 18 - 20 months of charging almost or virtually everything to it.
So it pays to do it via credit card, however a warning like i mention before together with Jag and the rest,
-----> * Spend within your means * <-----
Kindly note that i do not work in the financial industry or anything related to the banks or financial institutions. I do not have any issues with the banks or the institutions stated above nor am i a competitor to them. My views stated above of my own and as a personal consumer.
----------------------------------------------------------------------------------------
Contest theory: More entries = More chances - Concept of Probability.
Time & Tide waits for no Man.
it is not true that u need to spend 7-8k to earn $10 voucher for your Diners card. you only need to spend 3k to earn that. it's not that attractive to be honest but Diners card is good in that it can be used to pay for Foreign Worker Levy/employer CPF contribution. No other credit card allow that. and for spending 5k in 2 mth, u get free gifts (usualy home applicance worth $100+ every 2 mth).
all in all a good card for those who has CPF to pay.
it is not true that u need to spend 7-8k to earn $10 voucher for your Diners card. you only need to spend 3k to earn that. it's not that attractive to be honest but Diners card is good in that it can be used to pay for Foreign Worker Levy/employer CPF contribution. No other credit card allow that. and for spending 5k in 2 mth, u get free gifts (usualy home applicance worth $100+ every 2 mth).
all in all a good card for those who has CPF to pay.
Thanks verbatin for correcting... Well i do understand Diners do have their advantages especially their longest installment plan available which i am still paying for my furniture loan...
About foreign worker levy/employer CPF contribution...thats something new to me...Thanks once again for sharing with us .
Cheers.
----------------------------------------------------------------------------------------
Contest theory: More entries = More chances - Concept of Probability.
Time & Tide waits for no Man.