Tuesday, February 3, 2009

Reasons Why I keep a Credit Card

Credit Cards these days have become our best friend. Though i do not step out of my house without it still i m for and against keeping the credit cards. When i was young I was badly in debt, i used to take loan from my friends and never used to repay it, as a result of which the interest rate started growing up to the sky level. Somehow, I started avoiding the usage of Credit Card for few days but was not able to get rid of it completely.

The reasons were very simple. My best friend my credit card has always helped in my bad times. I can actually give you two instances when my credit card actually turned out to be a super hero for me. First, When i wanted to gift my sister a home at a reasonable mortgage rate after her marriage. I was successful in improving my credit score so that i can go to the bank and ask for a suitable home loan from them. Secondly, at the last year end i sat with my wife and made a budget plan as our expenditures were exceeding our incomes.

I started paying all the bills of the house from my credit card and at the month end i used to pay off the credit card. The only advantage i gained from it that my budget planner looked a bit more cleaner than usual. You will be surprised to know that I have three credit cards at the moment and i haven't paid a single interest money out of them and i will continue it till i owe those cards.

Just as an advice i wanted to add that if you save some amount of money from your income every month the dependency on credit cards will reduce. Another thing which I wanted to share is that Credit Cards are not at all forms of free money. At the month end you have to pay altogether for the things you have purchased with the help of your credit cards.

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