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savings account for 52 days and it increases my average daily balance;</li><li>I earn points and sometimes freebies on the credit card;</li><li>When the due date arrives, no problem, I’ll just pay the credit card bill online using the earmarked money kept in the savings account.</li></ol><h2 id="3ed7">2. When I really wanted to lend a loved one in need and I don’t have a budget for that purpose, I can use my card. How?</h2><p id="cc75">Once, my sister’s savings went $1400 short to pay her hospital bills during her emergency caesarian delivery. I don’t have ready cash at that moment. I went to the hospital and got the$ 1400 remaining bill charged on my credit card. Then I called the credit card company for an installment feature and my sister paid the bill for 12 months at a very minimal interest.</p><p id="7ad8">It’s a win-win situation. My sister’s problem was solved and the credit card company earned a little for the installment interest. And for me, my investments that are busy working in the stock market were spared from being pulled out and borrowed.</p><figure id="f1aa"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*4GRXyxLl9QI5mIl2usp2aw.jpeg"><figcaption>Photo by <a href="https://www.pexels.com/@anne-r-168988?utm_content=attributionCopyText&utm_medium=referral&utm_source=pexels">Anne R</a> from <a href="https://www.pexels.com/photo/brown-and-black-checkered-handbag-3661622/?utm_content=attributionCopyText&utm_medium=referral&utm_source=pexels">Pexels</a></figcaption></figure><h2 id="a7e2">3. Credit cards help me buy the things I really wanted but don’t have the courage to buy</h2><p id="0dc7">If others are cursing credit cards because they make them buy things on impulse, it’s a different story for me. Because of my financial blueprint of having lived in extreme poverty, I always have the tendency to restrict myself to buy the things that I really want.</p><p id="

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08bf">With my current financial situation, I can say that I can afford to buy myself some rewards but I’m still gravitated to buying cheap items with no quality. I’m price tag conscious. The habit of buying low-quality items is not being financial savvy at all. Add to that that using those items affects my confidence and self-esteem.</p><p id="cbd2">So, credit cards to the rescue! I swipe that piece of plastic to buy the high ticket items that I wanted and deserved. Since it’s not physical cash that I part with, the guilt of buying is less. With my card, I got my LV bags. :)</p><p id="0a87">I observe that paying in full does not hurt too since it was a habit and I actually have the cash for it. It’s just that I have to get over my difficulty of parting with cash when necessary.</p><h2 id="09bf">Other credit card perks:</h2><ul><li>You can charge your utility bills and won’t have difficulty monitoring bill due dates. One due date to monitor — the credit card due date;</li><li>Lots of freebies. For me, I already got branded watches, fine dining vouchers, cash credits, shopping gift certificates, and more!</li><li>You can get a cash advance and use the money for 52 days, do something with the money to earn, like buy and sell goods. Just make sure that your profit is bigger than the credit card cash advance fee that you will pay. Pay your bills when due. Repeat the cycle again next month;</li><li>It’s more secure than debit cards as you can easily contest fraud.</li></ul><p id="4ad5">NOTE: I never paid an annual fee. It’s just a matter of calling the credit card company. If you are a cardholder in good standing, they willingly waive the fees.</p><p id="2d19"><i>This story is the personal opinion of the author and used for informational purposes only. It should not be taken as strict financial advice. I live in the Philippines and credit card illustrations are taken in the local context.</i></p></article></body>

3 Reasons Why You Should Love Credit Cards

I have 6 and I love them all

Hi. It’s me the non-conformist saving and investing enthusiast. Love me or hate me, it’s OK. Most of the time I defy money standards set by financial experts. Trying the opposite practice is my game. If it works, I stand by it.

I learn a lot from popular financial gurus. But I don’t agree every time they say that credit cards are evil. They are not. When properly used, credit cards are great financial tools.

You should love credit cards because:

1. You can use them before you spend your own money

Study your credit card cycle. Know these 2 important dates: cut-off date and payment due date. If you plan on buying something, instead of buying it in cash, keep your cash, and charge the item on your credit card the day after the cut-off date. Wait for the bill and when the due date arrives pay it with the cash that you initially allotted for the purpose.

From the author: Illustrative credit card cycle

Why I am a fan of this credit card strategy:

Instead of spending my cash outright for a purchase, I get to keep my cash budgeted for the purpose in my savings account for 52 days and it increases my average daily balance;
I earn points and sometimes freebies on the credit card;
When the due date arrives, no problem, I’ll just pay the credit card bill online using the earmarked money kept in the savings account.

2. When I really wanted to lend a loved one in need and I don’t have a budget for that purpose, I can use my card. How?

Once, my sister’s savings went $1400 short to pay her hospital bills during her emergency caesarian delivery. I don’t have ready cash at that moment. I went to the hospital and got the $1400 remaining bill charged on my credit card. Then I called the credit card company for an installment feature and my sister paid the bill for 12 months at a very minimal interest.

It’s a win-win situation. My sister’s problem was solved and the credit card company earned a little for the installment interest. And for me, my investments that are busy working in the stock market were spared from being pulled out and borrowed.

3. Credit cards help me buy the things I really wanted but don’t have the courage to buy

If others are cursing credit cards because they make them buy things on impulse, it’s a different story for me. Because of my financial blueprint of having lived in extreme poverty, I always have the tendency to restrict myself to buy the things that I really want.

With my current financial situation, I can say that I can afford to buy myself some rewards but I’m still gravitated to buying cheap items with no quality. I’m price tag conscious. The habit of buying low-quality items is not being financial savvy at all. Add to that that using those items affects my confidence and self-esteem.

So, credit cards to the rescue! I swipe that piece of plastic to buy the high ticket items that I wanted and deserved. Since it’s not physical cash that I part with, the guilt of buying is less. With my card, I got my LV bags. :)

I observe that paying in full does not hurt too since it was a habit and I actually have the cash for it. It’s just that I have to get over my difficulty of parting with cash when necessary.

Other credit card perks:

You can charge your utility bills and won’t have difficulty monitoring bill due dates. One due date to monitor — the credit card due date;
Lots of freebies. For me, I already got branded watches, fine dining vouchers, cash credits, shopping gift certificates, and more!
You can get a cash advance and use the money for 52 days, do something with the money to earn, like buy and sell goods. Just make sure that your profit is bigger than the credit card cash advance fee that you will pay. Pay your bills when due. Repeat the cycle again next month;
It’s more secure than debit cards as you can easily contest fraud.

NOTE: I never paid an annual fee. It’s just a matter of calling the credit card company. If you are a cardholder in good standing, they willingly waive the fees.

This story is the personal opinion of the author and used for informational purposes only. It should not be taken as strict financial advice. I live in the Philippines and credit card illustrations are taken in the local context.