Using Credit Cards To Your Advantage

It is possible to have a credit card and never get into debt. However, to do this, you will need to have good spending habits in place. You will need self-control and discipline as you use your credit card to gain rewards. Luckily, it is not hard to cultivate good spending habits. Provided that you will take note of your bills due date and adhere to your budget, the remaining part will follow

When it comes to credit cards some people are ready to use them while others are against it. For Singaporeans who see credit cards as a necessity, they will have varying reasons starting with social status for convenience.

Using Credit Cards To Your Advantage

Then again, for those who may not accept that credit cards will do you good, will offer a million reasons against the use of the cards. Even then when you are considering whether to take one or not.

Below are some ways for you to use your credit card for the most benefit.

Choose The Best Credit Card For You

For a progressive country like Singapore, there are numerous types of cards available. The different types of cards may be availed for a large variety of uses. This means it is you who is to decide on the one that will be suitable for you. Cards like the POSB, OCBC, and Citibank are suitable for activities connected to EZ-Link.

When buying petrol the card to use is the POSB Everyday Card, Credit card by American Express – Platinum, and UOB PRVI Platinum Card. Therefore, before you get any card do consider why you are getting it. This will help you choose the best card for your financial needs.

It Can Grow Your Credit Score

Your score is a factor that will determine whether a moneylender you are trying to get a loan from will authorize your personal loan application or not. The licensed moneylenders will make their decision depending on whether a borrower can pay based on their credit score. When a borrower has a low score, then a lender may be reluctant to offer a loan to them. This is because the borrower may not be capable to make regular payments as required.

Similarly, when you do not have any credit score since you have never taken a personal loan as well you have never taken a credit card. Thus the moneylender will not have have a way to know if they may trust that you will repay or not. In a way, by getting a credit card you will get to grow your score. What you will need to do is ensure that you settle it and pay back regularly.

You, Will, Get Rewards

Several credit cards offer rewards should you spend through their cards. This is a marketing plan to get you to spend on something they are offering you. At times they will offer miles that you could use for travel.

Therefore, when you spend cash on things, then it is ok provided you know you will pay promptly. At the same time, you know that you will get something in return. This will not be heavy on you.

Owning a credit card may not be as bad as it is at times pictured. It just will require lots of self-control and discipline. However, once you know the right method of spending wisely, then things will work out well for you.

Make The Best Of The Bonus Offers

Though it is not recommended that you go through several credit cards each year for you to gain their bonuses. It is normally a good idea that you be on the lookout for any promotional offers. This is more so when you are getting a new card. From these, you can often earn thousands of bonus points on most cards. This is by simply spending a given amount within a given time after getting a card.

Existing cardholders need to also look out for seasonal offers, particularly during the holiday season. Most credit cards normally offer special promotions in additional miles or even cash rebates during peak travel seasons in June and December.

Utilize Fully The Reward Points

The fastest way to fully use your reward points would be to use a given card which offers the highest points in rewards for specific purchase categories. This can be for things such as gas, groceries, or dining out.

Generally, it is best to have several cards that give the most rewards for different categories of purchases. This way they will complement one another. Though for you to make the most of the card collection will require some effort. This is to remember the most ideal for each purchasing category. This will not be hard when done with 2-3 cards you frequently use.

People oftentimes make a mistake by choosing a card just simply because they want to. It is essential that you carefully consider the card you want before you get one. By doing a proper comparison it will help you know if it is worth getting the credit card

It May Be The Only Acceptable Way To Pay

Some establishments, particularly in other countries, will only accept leading credit cards as a payment option for their services. Certain conditions may also require you to have a credit card such as when you travel to another country and do not find any money changing stations. You will benefit most when you hold a credit card during such times.

Also, some airlines and hotels only accept advanced bookings using credit card payments. Therefore, when you are planning to travel shortly. Then it is wise that you consider taking with you a credit card.


Just like any tool, credit cards are only good or harmful based on what you make them be. Different from paying using cash, plastic money allows you to earn air miles, rewards, or discounts on every single dollar you use it. Provided that you have good spending habits in place, then it will be easy to utilize credit cards to benefit you fully.

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