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Thread: How to use credit card & Cash line wisely?

  1. #41

    Default Re: How to use credit card & Cash line wisely?

    Best is not to have credit cards but use hard cash.............

  2. #42

    Smile Re: How to use credit card & Cash line wisely?

    care to be explicit with examples.

    Quote Originally Posted by auron
    most easier way to use credit card is to pay all outstanding bills every month before the due date.

    you draw the X amount money out from credit card/cash line and generated Y amount of money from that X amount of money. If Y amount of money is more than the interest that you need to pay off, then that is the wisest way to use credit card/cash line.

    unfortunately, not many ppl can do the above, so just stick to the easier way.

  3. #43
    Senior Member Canew's Avatar
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    Default Re: How to use credit card & Cash line wisely?

    Quote Originally Posted by centuryegg
    Best is not to have credit cards but use hard cash.............
    This statement is not true. Using Credit Cards gives you more discounts. 2 examples: pumping at SPC and paying for the petrol using a OCBC credit card will give you an additional 11% discount; shopping at Robinson's using the Robinson's credit card will give you a 5% or 10% rebate for your purchases.
    You will not get these savings if you were to use cash. Just remember to pay before or on the due date.

  4. #44

    Smile Re: How to use credit card & Cash line wisely?

    what you are saying is valid if one is unable to make use of credit card/s to one's financial advantage.


    Quote Originally Posted by centuryegg
    Best is not to have credit cards but use hard cash.............
    Last edited by reachme2003; 14th January 2006 at 12:50 AM.

  5. #45

    Default Re: How to use credit card & Cash line wisely?

    Quote Originally Posted by reachme2003
    care to be explicit with examples.
    i'm assuming that you are referring to the second case.
    i do not have explicit example, or i would be very lich liao....

    just an example,
    your credit card limit is $5k. your cash line limit is $5k.

    one fine day, you got a opportunity to make some money.
    for example, one of your friend company is going IPO and is selling you some shares at a discount.
    so you draw out the $5k+$5k and buy the company shares, later when the company is listed you sell away the shares and let say earn 20%. so if this 20% if more than the interest that you need to pay, i do not see why you cannot use the cc overdraft and cashline.

    of course these are the opportunities that are really hard to come by.

  6. #46

    Default Re: How to use credit card & Cash line wisely?

    Quote Originally Posted by reachme2003
    what you are saying is valid if one is unable to make use of credit card/s to one's financial advantage.

    Why I say that is because, during our parent's time. Using cash encouraged us to save and be debt free. Now the marketing strategy is INSTANT GRATIFICATION. Hence credit is considered good and the more you earn, the more credit you are given. Cards are sold as symbols of status and wellbeing.... Even though there are savings from using cards, frankly sometimes these so called savings only encourage us to spend more.

    We all can talk about how to be discipline and all.... but frankly half the things we buy on credit, do we really need them??

  7. #47

    Smile Re: How to use credit card & Cash line wisely?

    you are right these opportunities are hard to come by. btw, what happens if the ipo's shares' price were 'under water' i.e. open and stay below the offer price? how can one be so sure that it will open at a premium?

    Quote Originally Posted by auron
    i'm assuming that you are referring to the second case.
    i do not have explicit example, or i would be very lich liao....

    just an example,
    your credit card limit is $5k. your cash line limit is $5k.

    one fine day, you got a opportunity to make some money.
    for example, one of your friend company is going IPO and is selling you some shares at a discount.
    so you draw out the $5k+$5k and buy the company shares, later when the company is listed you sell away the shares and let say earn 20%. so if this 20% if more than the interest that you need to pay, i do not see why you cannot use the cc overdraft and cashline.

    of course these are the opportunities that are really hard to come by.

  8. #48

    Smile Re: How to use credit card & Cash line wisely?

    times have changed. however, the adage 'stay debt-free' is still a valid goal for all today.

    Quote Originally Posted by centuryegg
    Why I say that is because, during our parent's time. Using cash encouraged us to save and be debt free. Now the marketing strategy is INSTANT GRATIFICATION. Hence credit is considered good and the more you earn, the more credit you are given. Cards are sold as symbols of status and wellbeing.... Even though there are savings from using cards, frankly sometimes these so called savings only encourage us to spend more.

    We all can talk about how to be discipline and all.... but frankly half the things we buy on credit, do we really need them??

  9. #49

    Default Re: How to use credit card & Cash line wisely?

    Quote Originally Posted by reachme2003
    you are right these opportunities are hard to come by. btw, what happens if the ipo's shares' price were 'under water' i.e. open and stay below the offer price? how can one be so sure that it will open at a premium?
    that y i said you have to be sure that it will make money.
    then you use the overdraft and cashline facilities. if you do not have the overdraft and cashline facilities, even if you are sure that it will make money, you lose the chance of making some money.

  10. #50
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    Default Re: How to use credit card & Cash line wisely?

    I applied for cashline in the first place as my sister want to buy a PC n since cashline does have the offer, I helped my sister to get it.

    In the end, I hardly catch up with the payment as I also got use some of the $ in the cashline. I use it on my camera n now, a big hole down there waiting for me to fill up. Only recently, manage to fill 1/2 of it. Interest are damn scary. Abt $60+ per mth for the amount of $5k. Really hope to cut down on hobbies n start to save up again. Try at your own risk for applying but remember, no pain, no gain.
    Only Sony device mostly, haha!

  11. #51
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    Default Re: How to use credit card & Cash line wisely?

    What's the best way out for Credit Card holders who are in a fix (debt-laden)?

    I heard some say that one can negotiate with the bank certain terms (ie lower interest) just to clear the credit. It seems another option is to opt for Balance Transfer (lower interest).

    Anything else?

    :Later,

  12. #52

    Smile Re: How to use credit card & Cash line wisely?

    you have not answer my question. how to determine that it will turn out to be a winner?

    Quote Originally Posted by auron
    that y i said you have to be sure that it will make money.
    then you use the overdraft and cashline facilities. if you do not have the overdraft and cashline facilities, even if you are sure that it will make money, you lose the chance of making some money.

  13. #53

    Smile Re: How to use credit card & Cash line wisely?

    register yourself for the relevant Moneysense programme or get credit counselling.

    Quote Originally Posted by Pinoy
    What's the best way out for Credit Card holders who are in a fix (debt-laden)?

    I heard some say that one can negotiate with the bank certain terms (ie lower interest) just to clear the credit. It seems another option is to opt for Balance Transfer (lower interest).

    Anything else?

    :Later,

  14. #54

    Default Re: How to use credit card & Cash line wisely?

    Quote Originally Posted by reachme2003
    you have not answer my question. how to determine that it will turn out to be a winner?

    whether it turn out to be a winner or not, you have to depend on your own judgement.

    i think you do not really get what i'm saying...
    basically what i'm saying that if you have the cc overdraft and cashline facilities, you can use them if you see the opportunity to make money (as long as the money make is more than the interest that you need to pay back). if you do not have them, even if you have the opportunity to make money, you can't because you do not have any cash in the first place to draw upon.

  15. #55

    Smile Re: How to use credit card & Cash line wisely?

    putting in borrowed $$ to finance a investment which is not entirely risk-free eg. ipos is not prudent. the downside risk is too high eg. if the ipos is 'underwater' and yet, one needs to finance the borrowed $$.

    putting in borrowed $$ to fund a fixed deposit which pays a higher rate of return is prudent.


    Quote Originally Posted by auron
    whether it turn out to be a winner or not, you have to depend on your own judgement.

    i think you do not really get what i'm saying...
    basically what i'm saying that if you have the cc overdraft and cashline facilities, you can use them if you see the opportunity to make money (as long as the money make is more than the interest that you need to pay back). if you do not have them, even if you have the opportunity to make money, you can't because you do not have any cash in the first place to draw upon.

  16. #56

    Default Re: How to use credit card & Cash line wisely?

    Quote Originally Posted by reachme2003
    putting in borrowed $$ to fund a fixed deposit which pays a higher rate of return is prudent.
    This is extremely unlikely to happen. If you find a bank that lends you at a lower rate than its fixed deposit rate, let me know to sell the bank's shares!!

  17. #57

    Default Re: How to use credit card & Cash line wisely?

    The only way to use card wisely is to follow the example of the Taiwan Card Goddess.

    She turned the tables on the profit oriented card companies, shifting power to the card consumer.

    http://www.taipeitimes.com/News/biz/.../13/2003288811

  18. #58
    vince123123
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    Default Re: How to use credit card & Cash line wisely?

    Yeap, thats the way! Requires a fair bit of effort though...and the key factor missing here is the redemption of 20k for 19k. I have yet to see vouchers here with that kind of terms...and even finding vouchers which cost less than the face value is difficult.

    Actually the bank seems to be grasping at straws cos it appears that what she did was legitimate. Thumbs up to their Consumers Foundation for helping her

    Quote Originally Posted by reminisce
    The only way to use card wisely is to follow the example of the Taiwan Card Goddess.

    She turned the tables on the profit oriented card companies, shifting power to the card consumer.

    http://www.taipeitimes.com/News/biz/.../13/2003288811

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