Monday, December 14, 2009

Convenient credit cards a bane, boon

I totally agree with this Inquirer column.

To summarize, credit cards can be bad in 2 main ways.

1. they encourage you to spend more and be more impulsive in shopping.
2. after shopping, you eventually can end up paying more than the cash price through
2.a. the interest
2.b. the fees like annual fees, etc

I always swore that I would never get a CC. I almost broke my promise because I needed a CC to buy online with paypal. But if you read my blog (see here), you know that smart money is paypal compatible. Since it is practically the same as a mastercard CC and is compatible with all electronic CC counters, It supplies the same convenience as a CC, but of course its pre paid.

Now with that taken care of, The only reason IMHO to get a CC is if you spend more than the smart money 50k limit or you have no money right now, you need to buy something BUT you will have money next payday.

in reference to:
"Convenient credit cards a bane, boon"
- Business - Convenient credit cards a bane, boon - (view on Google Sidewiki)

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