I love Credit Cards and why you should too!
Okay, okay. I know what you are thinking!
Consumer debt at an alarming 19.99% interest rate? No thank you, Sir! Hear me out or should I say keep reading.
Credit cards are great tools if you know how to use them smartly and efficiently. I almost always use my credit cards today. I set up Pre Authorized Payments on them and on due date, my credit cards pay off in full and carry zero balance. I get cashback, reward points etc. But wait a second! There is no such thing as free lunch. Credit Card companies do make money by charging the merchants a small transaction fee. You get your cashback, reward points, air miles points from those fees. So yes, credit card companies make money and you make little money by being responsible! Easy, peasy!
The other reason behind loving credit cards is by using pre authorized payment systems, I pretty much automate the entire scenario. I focus on making money and looking for deals. I let credit cards to take care of my business expenses. This frees up my time and energy. Also, all the transactions are available via statements which are essential for my bookkeepers and accountants to work with. Make your life easy for everyone including the government, and, have some fun while at it :).
All the money I saved up from using gift cards and cashbacks from my credit cards, I used to build this website. Also, sometimes merchants partner up with VISA/MasterCard companies to provide more discount.
For example, I got 10% back in the beginning of Oct 2019 because I signed up MasterCard with Shell and my fuel purchase was more than $50. See below:
Credit Cards are dangerous but that does not mean you should not use them. Use them smartly and you will never have to pay a dime in interests.
Remember to follow steps below:
1. Figure out what you can afford with your debit card. Then use the credit card instead. Repay, in full, each month. Remember this by heart!
2. Use a credit card with the lowest interest rate you can find - just in case.
3. Repeat step 1 & step 2.