In today's topic, I will discuss the pros and cons about having credit card because recently I have applied Frank credit card in order to obtain one more percent of interest for OCBC 360 account (probably start spending next month). I took quite sometime to decide whether to sign up for a credit card (this is my first credit card) because I have seen lots of people overspend what they have and landed in huge debt because of credit card. (One of the cons)
As for me, I am not a big spender as I live quite simple, just accompany my girlfriend and friends to have lunch and dinner or even spend a day to sing karaoke. My previous spending method is using cash as I believe cash is king. However, after I read through the benefit of signing credit card from OCBC, indeed it is a better choice for me because it comes with a rebate of 0.5% for all purchases.
Take an example, if I am going to get the 1% interest from OCBC 360, I would need to spend at least $400 per month. If I didn't sign up for credit card, I will spend these amount of money via cash (let's say we spend $600 for meals and entertainment - quoted in Small tips on saving plan).
But if I sign up for credit card, and spend $600 via my credit card, I will receive 0.5% rebate, which will means that I will save $3. Although the sum is small, but after all, is a saving option. Of course there are tons of offers by the credit card company which comes with attractive promotion. Do check it out for more rebates!
So having credit card can really save money, but must remember not to overspend on what you have, thus, set the limitation of the amount you can spend with the credit card company so that you can limit the money spend via credit card.
No comments:
Post a Comment