Thursday, November 4, 2010

That Plastic Card

I got my  personal credit card this year and I can pretty much say that I am enjoying the benefits of it. Considering the fact that this is my first one, I  made sure I understand things I need to know more than that of just swiping. 

For a starter, I applied for a VISA HSBC Classic Card. There are so much things I considered before ending up with what type of card I will be getting and to what bank I will be applying. My sister is currently using a VISA Citibank Credit Card. Aside from finance charges, annual fees and so on,  she told me that I should be looking for one which I can use not just here but also abroad. There are so many banks which offer such, but I chose HSBC since it is a well-known worldwide bank which means it can be accepted internationally.

Some may be afraid of signing up or getting one because they don't want to be buried of debt because of fear of interests. But let me tell you this. That can never ever happen if you pay full, and ON (much better if before) TIME. And also, before you go on swiping, think. Do you need what you are buying? Can you afford to pay it? One must swipe WISELY.

Credit card before is only a "social status symbol". But as of today, I can say that it has evolved from that, to a necessity. Having one is  very convenient. Plus with your wise spending, you also get to enjoy perks from  your card issuer like free movie pass, pizza, a Starbucks drink or gift certificates and even 0% interest on some purchases.

Paying in full and on time means obtaining a good credit card history. This is what financial institutions use when for instance you will be applying for loans from banks. So we cannot take that for granted.

Having a credit card is a convenience and a curse. Convenience for responsible users and a curse for over spenders and late payers.

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