Credit Card: Friend or Foe?

Credit card for me is one of the greatest invention by man. It will allow you to shop without any cash, use it in real emergency situation or you could make cash advance (though i do not recommend the latter). Credit card has a skyrocketed interest if you do the cash advance thing.

SO it's credit card a friend or foe? We'll it really depends on the cardholder. As for me, it is my friend. I got a chance to enjoy shopping and dining without withdrawing any cash, booked flights online, booked hotel online, shopped online, and enjoy the rebate, points and promos. Credit Card is Cool. I have 1 Citibank Shell Visa Card which I can have a 5% rebate at Shell gasoline station. I also have a HSBC Mabuhay miles card which I could enjoy the mabuhay miles points for free airplane ticket. It can also be used in Caltex Gasoline Staction and get a 5% rebate on gasoline purchased. My yearly rebate on gasoline is approximately P3000.

You only have to follow the rules which I set to myself to avoid being greedy and to the point that you cannot control yourself.

Below are my basic rules an tips to effectively enjoy Credit Card' to your advantage;

1) Never make minimum due payment. I zeroed all my balances before due date. No interest charge of course :)
2) Make sure all your purchases are within your reach for rule number 1.
3) Never make a cash advance. A big no no for me here.
4) Closed your credit card as soon as they charged you annual fee.
Usually credit card will give you waived annual fee on your first year but they will charged you in your 2nd year. In my 7 years of having a credit card, I am 100% sure that creditor once you tell them to cut your card, they will extend there waived annual fee. I have a 4 year old credit card that I never have to pay the annual fee.

Good luck to your credit card.