THE use of credit cards is prevalent and dominant among consumers nowadays. Much has been intimated regarding the use and misuse of this facility. The bottom line is, consumers should have good financial habits and discipline.

Let me elaborate on how prudent use of credit cards can truly benefit all individuals.

Like every household, I have to pay for basic amenities such as electricity, water and telephone monthly. The due dates of payment for these bills are usually the last day of the respective months. All these amenities can now be paid through credit cards.

My credit card statement date is the 22nd of the month and payment due date is the 13th of the following month. I can therefore settle all payments after the 22nd of the month and get billed by the credit card company only on the following month.

This means the credit card bill need only be settled before the 13th of the month. For example, an electricity bill that needs to be paid by Aug 31 is only settled on Oct 13. Hence, I have gained 40 days credit.

This is not all. Most credit cards now award bonus points. You get
redeemable points for every ringgit you spend. Points accumulated over the months and years can be used to redeem household or living items which are most likely on your wants list.

You will not feel that guilty spending on these items through your bonus points redemption. But of course, you have to settle your credit card bills fully every month. With discipline, you can truly use a credit card to your advantage.

by LIONG KAM CHONG(source thestar.com.my)

I strongly agree with the writer but you really must have good cashflow to use this trick. Imagin what if you cannot paid the credit card bill on time, you have to pay for the card interests.This will get you into more trouble!!


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