How to use credit card & Cash line wisely?
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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.centuryegg said:
You will not get these savings if you were to use cash.
Just remember to pay before or on the due date. what you are saying is valid if one is unable to make use of credit card/s to one's financial advantage.
centuryegg said:
reachme2003 said:
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.
reachme2003 said:
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??
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?
auron said:
times have changed. however, the adage 'stay debt-free' is still a valid goal for all today.
centuryegg said:
reachme2003 said:
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.
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. :cry: 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.
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. :cry: 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.
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,
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,
you have not answer my question. how to determine that it will turn out to be a winner?
auron said:
reachme2003 said:
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.
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 $$ to fund a fixed deposit which pays a higher rate of return is prudent.
putting in borrowed $$ to fund a fixed deposit which pays a higher rate of return is prudent.
auron said:
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/archives/2006/01/13/2003288811
She turned the tables on the profit oriented card companies, shifting power to the card consumer.
http://www.taipeitimes.com/News/biz/archives/2006/01/13/2003288811
V
vince123123
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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
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
reminisce said:
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