Things to Consider Before Applying Credit Cards

using credit card sometimes similar with borrowing with 'along' or 'ceti', it involves charges. before you agree to open a credit card account (via agent or at bank), don't neglect its terms and conditions. carefully read to avoid hidden charges. don't simply believe in 'no fees' or 'free annual fees' or any 'free' terms. you have to read the terms and conditions. the following are some important terms to consider that generally must be disclosed in credit card applications or in solicitations that require no application.

1. Annual Percentage Rate
- it is a measure of the cost of credit, expressed as a yearly rate. make sure it is disclosed before you become obligated on the account and on your account statements. the issuer also must disclose the "periodic rate" - the rate applied to your outstanding balance to figure the finance charge for each billing period.

however there's some plans called variable rate. and you have to ensure that the rate may change and how it is determined - which index is used and what additional amount to determine your new rate.

2. Grace Period
- a free period you have before the due date that allow you to avoid finance charge by not doing the fully payment. example, as the bill reaches, you still have 10 days before the due date.

3. Annual Fees
- if it says it's free, read again to make sure it's really free. it must be disclosed after all.

4. Transaction Fees & Other Fees
- some charge you a fee if you use the card to get a cash advance, late payment, or exceed credit limit. some charge a monthly fee whether or not you use the card.

in a nutshell, don't throw away the terms & conditions, even if the agent gives you a prompt briefing that makes you happy to use the card. my own experience, they said no annual fees, instead they charged me on monthly fees...

Credit Card is Good

we've been through a society that saying credit card is bad. it will lead you into deep debt. yeah i have to agree with this. credit card is not for those who doesn't know the value of money.

credit card itself is putting you in debt. everytime you use it, you have to pay it later. it you are not smart, you'll end up cash out more than your cash in and make you deeply in debt. this is where the skill of 'valuing' money is very vital.

i list down some benefit by paying using credit card:-

1. you can keep your cash for any emergency.
2. you can collect points and redeem in the end, some banks offers goods to exchange with your points, some offer cash rebate, etc.
3. you may defer your current expenditure into your next month's salary. so you're gonna have a better projection on your next cash-out.
4. you don't need to bring cash on your wallet.
5. you can pay your car's fuel at the pump.
6. you can plan wisely for shopping by buying a bundle of goods since credit card has its minimum pay.
7. you can educate your children by controlling their money-out (kids don't use credit card).

provided...

1. you have knowledge about 'valuing' your money.
2. you are at least in the middle-class group.
3. you are sane.
4. you will pay the full bill.
5. you got money.
6. you got money.
7. you got money.

well, anyway it will work only if you know the value of money...