auron said: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.
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:Best is not to have credit cards but use hard cash.............
centuryegg said:Best is not to have credit cards but use hard cash.............
reachme2003 said:care to be explicit with examples.
reachme2003 said:what you are saying is valid if one is unable to make use of credit card/s to one's financial advantage.
auron 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.
centuryegg 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??
reachme2003 said: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: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.
Pinoy said: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,
reachme2003 said:you have not answer my question. how to determine that it will turn out to be a winner?
auron 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.
reachme2003 said:putting in borrowed $$ to fund a fixed deposit which pays a higher rate of return is prudent.
reminisce 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