NU 12: New Spending Habit (Credit Card Use Strategy)
Credit cards for others may find it a burden but it's the other way around for me. Starting this year I find it advantageous to use my credit cards as medium for my spending, and I even gain a profit from using it, contradicting from a common connotation that you will have a credit by using a credit card. Here's what I did to maximized and utilized my credit card effectively.
First, it is important that I know my billing statement cycle. From this I was able to calendar my big purchases for me to pay it for next month and to hold the money intended for buying it to other things. Second, if I can avail of a 0% (zero percent) installment basis (maximum of 6 months) for a certain purchase, I grab it. Third, using credit cards entitles me to earn points and food vouchers which I use during our mall visits, my "pasalubong" when visiting relatives, and share it with friends. Lastly, when its pay time, it should be pay time! I settle my whole balance for the current month to prevent the finance charge from occurring. Why then I opted to use my credit card if I still pay the whole balance when the billing statement arrives? The answer is I used the money for my private lending business for individuals, instead of cash spending I used credit cards so that I have something to lend for my loaners. The profit I gain from lending is not that really big but the idea is why not grab the opportunity given by somebody to use their money for spending (credit cards) then paying them on time to avoid finance charges while your own money is working for you. 3
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