How to use credit card & Cash line wisely?


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LENS

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Apr 8, 2005
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#1
Hi guys,

Just would like to hear from you how u use your credit card or cash line in a wise way?

Usually you won't be charged by a single cents if you have paid what u have used before the due date... issit true?

How about cashline? like DBS cashline. Issit same that you won't be charge by single cents if u pay it back before the due date?

I have tried to read FAQ, and even think of giving them a call, but i find that normally experience from others is simple and straight-forward.
 

V

vince123123

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#2
I think there's some sort of charge for Cashline or any cash advance facility based on your credit card
 

student

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Jul 26, 2004
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#3
LENS said:
Hi guys,

Just would like to hear from you how u use your credit card or cash line in a wise way?
Don't use them if you have a choice.
 

Canew

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#4
LENS said:
Usually you won't be charged by a single cents if you have paid what u have used before the due date... issit true?
For Credit Cards, this is correct. But for overdraft facilities like Cashline, the moment that you withdraw, you will be charged for interest. (if the withdrawal is not 'returned' within 1 day)
 

#6
ortega said:
there is still the annual charge to consider
Usually, just call up the bank to ask for waiver of annual charge, they usually will agree, else can always cancel the card and apply for another card...;)

Anyway, best way to use credit card is to spend only within your limits, and pay off the bill by the due date to avoid paying interest rate charges, which can be excessive after some time. Try not to use pay minimum.

for cashline, the interest is charged from the moment the bank pays, so you will have to pay some interest charges, even if you pay before the due date. I don't use the cashline facility.

In the end, it's careful management of your money that matters.
 

LENS

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student said:
Don't use them if you have a choice.
Well, that's true ha.

But i am just trying to understand more, if there is way to manage it well.
 

LENS

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Canew said:
For Credit Cards, this is correct. But for overdraft facilities like Cashline, the moment that you withdraw, you will be charged for interest. (if the withdrawal is not 'returned' within 1 day)
oic, so if i transfer $1000 from the cashline account, i will be charged started from 2nd day.. any idea how the charge will be calculated?

I was wondering if the $ can be used 'free' within the due date, then i should manage it, guess i am wrong!! so even u pay it before due date, u get charged too?
 

Canew

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#9
LENS said:
so even u pay it before due date, u get charged too?
Yes, LENS, the interest starts the next day when you draw out the money, they will not wait till the date due. I learnt that lesson the hard way. :)
 

reachme2003

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Oct 6, 2003
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a correction. if you use credit cards, pay in FULL on DUE DATE. no reason to pay before due date. the best way to ensure full payment on due date is to have giro arrangement with adequate funds in your account, of course. with adequate spendings on cards, negotiate for no card fees to be paid.


Canew said:
For Credit Cards, this is correct. But for overdraft facilities like Cashline, the moment that you withdraw, you will be charged for interest. (if the withdrawal is not 'returned' within 1 day)
 

GDSNP

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#12
LENS said:
oic, so if i transfer $1000 from the cashline account, i will be charged started from 2nd day.. any idea how the charge will be calculated?

I was wondering if the $ can be used 'free' within the due date, then i should manage it, guess i am wrong!! so even u pay it before due date, u get charged too?
DBS Cashline charges 16.5% p.a. and if you use $1000 for one day, you will be charged $0.44 interest.

I hope i calculated correctly. :D
 

LENS

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#13
Canew said:
Ya, OK. Pay full ON due date.
Well, does it mean if we pay BEFORE..mmm..the bank takes advantage?haa..
 

Aug 18, 2004
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#14
LENS said:
Hi guys,

Just would like to hear from you how u use your credit card or cash line in a wise way?

Usually you won't be charged by a single cents if you have paid what u have used before the due date... issit true?

How about cashline? like DBS cashline. Issit same that you won't be charge by single cents if u pay it back before the due date?

I have tried to read FAQ, and even think of giving them a call, but i find that normally experience from others is simple and straight-forward.
Cashline is a LOC (line of credit and unlike credit card). Once you use, you will be charged interest altho lower then credit card. Also, pls factor in the annual fee for the LOC so it's def not free.
 

Aug 18, 2004
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#15
Advice : Try not to depend too much on credit. It tends to snowball because u start thinkin in terms of future earnings. I was once in such a bad state i had 4-5 credit cards and same no. of lines of credit. It was the worst mistake and lowest point of my life.
 

popeye

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#16
GDSNP said:
DBS Cashline charges 16.5% p.a. and if you use $1000 for one day, you will be charged $0.44 interest.

I hope i calculated correctly. :D

mathematically, you're correct.
But in reality, mininum charge is usually $5. So, in this case, it's still chargeable at $5 instead of $0.44
 

LENS

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#17
GDSNP said:
DBS Cashline charges 16.5% p.a. and if you use $1000 for one day, you will be charged $0.44 interest.

I hope i calculated correctly. :D
thank you. i just got a reply from cashline too.

>Refer to your first enquiry. We would like to clarify that DBS Cashline is a revolving line of >credit, thus interest is accrued on a daily basis at an interest rate of 16.5% p.a. until full >payment, including the accrued interest has been received. Interest will start to incur >when you do a debit transaction from the account.
>Refer to your second enquiry. Payment due date is 25 days after the statement date.

16.5% / 365 days = 0.045%
so it means it charges 0.045% daily?
so when u draw $1000 monday, you pay $0.45 second day, $0.90 next day, $1.35 next day...right?

so 25 days mean 25x $0.45 = $11.25

I will need to pay $1011.25.. by the due date..am i right?



 

Prismatic

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#18
I feel if you think you can pay off the debt on your due date, then it's probably just a matter of cash liquidity when you decide to use your credit card of cashline (ie:You can afford a purchase, but don't have enough cash to buy). Of course, there's a price to pay for using the service.

If you have to take a line of credit to buy something and then worry about not being able to pay off your dues later, it just mean that you can't personally afford the purchase. There are many people out that, that take lines after lines of credit just to fuel their shopping habit and end up in incredible amount of debt.
 

LENS

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#19
Prismatic said:
I feel if you think you can pay off the debt on your due date, then it's probably just a matter of cash liquidity when you decide to use your credit card of cashline (ie:You can afford a purchase, but don't have enough cash to buy). Of course, there's a price to pay for using the service.

If you have to take a line of credit to buy something and then worry about not being able to pay off your dues later, it just mean that you can't personally afford the purchase. There are many people out that, that take lines after lines of credit just to fuel their shopping habit and end up in incredible amount of debt.
Well, i have learnt lesson with Credit card ha.
However, instead of getting bitter with the Credit card. I would rather to understand more and know how to manage it. That's the only way to learn and won't fall again. =)

Ya, i strongly agree that u use what u will pay before due day.
 

dkw

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#20
Credit cards a a useful and flexible tool for managing large payments. IF used sensibly, you can use it for decades without incurring a single cent of interest, late charge, annual fee etc. It is effectively a short-term, interest free loan, PLUS you can get certain nice little freebies on signing on or upon redemption of points:).

However, they are a BRUTAL instrument to go into debt with. Only buy what you can afford to pay off immediately, and never never roll over credit on your credit cards. If you are the financially prudent type, and not given to overspending, then feel free to make full use of credit cards. In fact, you would be quite foolish not to.

Cheers
 

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