Monday 12 January 2015

Benefits of Credit Card


Credit card often associated with the risk of being used unauthorized by other people and the risk of causing debt to the card holder due to over spending. It is definitely dangerous to the card holder in terms of card safety if he/she does not practice basic safety measure on the card itself such as exposing the card information to other people and perform online transaction using laptop/pc/smartphone infected by virus or some unknown websites. For over spending, it is an issue for card holder if he/she is using the credit card for the purpose to buy something that he/she could not afford or would not buy with the cash money.

However, if the credit card is being used safely by practicing all the safety measures and being used wisely such as to pam petrols, buy necessary things that are still payable with cash even if there is no credit card, then having a credit card is recommended.

Credit card is very useful during emergency time such as admission to hospital that requires to pay some deposit beforehand even if with a Hospitalization Medical Card. Credit card can be used to pay admission deposits that would cost at least few thousand ringgit which may be difficult to pay with cash at that moment.

Credit card usage is giving some rebates on the amount spent and providing the reward points for every dollar spent. The reward points can then be used to redeem stuffs depending total points accumulated.

After using my credit card for general usage such as pam petrol, buy groceries and pay bills, I have accumulated a certain amount of points that can be used to exchange some stuff from the redeem list available.

So, I just use the reward point from my credit card to redeem a Philips Radio. It is consider a good deal. Since I don't use the radio at my rented place, I put the radio at my hometown for my family to use :)

Using credit card safely and wisely will provide more benefits rather than harm in long term.

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