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Tuesday, February 23, 2010

Advantages of Credit Card

A good friend of mine once put on a credit card. In the daily activities he never forgot to bring the card in his wallet, and even he felt less safe when traveling out of town without a credit card. But the least he liked about credit card debt that is flowering. Because of that, he's always trying to pay bills his credit card is paid off every month, and until now he never had a problem with his credit card.

I think credit card is one of the special payments, because it does not hurt you to have it. For example, if a sudden there was a family member to the hospital and you do not have the cash for payment, then you can use a credit card.

Various kinds of payments that are important can be overcome immediately by Prepaid Credit Cards Even in Indonesia, currently the recipient (merchant) Credit cards are still much more than accepting Debit Card.

So you see that the actual Prepaid Cards or credit card is not the source of the problem. What matters is if each month you are only able to pay only the minimum of the total bill for the expenditure of consumer goods whose value decreased. Because of the outstanding balance each will bear interest, so do not be surprised if your credit card debt could be worth far more than the price itself!

Although many people are afraid of using credit cards, but one means of payment is actually worth because you have many advantages, including:

1.As a means of cash payment instead of more practical and safe. With a Credit Card, you do not need a lot of inventory carrying cash in your wallet right?

2.As a means of paying all kinds of expenses that are emergency or cannot be postponed again, but at the same time you do not have the cash to pay for it.

3. Able to withdraw cash from ATM machines. The maximum cash withdrawal limit is usually 40 percent of the limit of your credit card usage. Especially for cash withdrawals, credit interest is charged is greater. Large amount of money that can be drawn also depends on how much the rest of the existing limit.

4. Flexibility in payment of bills that can be done in a minimal amount can be repaid or, where you will be given a grace period of payment. That means you are not required to directly pay the bills on the spot or the next day, but usually are given a grace period of several days (approximately 20, 25 to 30 days from the time of the transaction). Or, you can also pay when the invoice arrived. Meanwhile, how can you choose repayment, the loans are repaid in full at once or according to the amount of minimum payments that are also listed on the invoice.

5.How to calculate credit card interest is easy enough, but the results of calculations with the actual credit card may be a little more or less difference. What is important is that you know that every bill is not paid in full will be subject to interest and the amount added to the number of new bills in the next month? And so on.

The selection should be based on a credit card for your needs, not solely because tempted gifts, souvenirs, sweepstakes, or even the lack of contributions in the first year. If your income is low just need to have one credit card just as a precaution in case of emergency.

First think before you open new bank account, must pass ChexSystems. ChexSystems is a database of information, provided by financial institutions like Bank all over the world, containing reports and data on consumers with bad financial problem in the past. If you had bad credit data in the other bank, you can not pass ChexSystems. It is used to protect financial institution from defaulted loans.

My conclusion, Prepaid Credit Cards is very useful for emergency and lifestyle but you must check your debt periodically.